Thanks Brent. Moving on to Slide 9, let's focus on the current backdrop for North American large ag including farmer sentiment, replacement demand and the status of our 2019 early order program. Over the past several months, I've traveled extensively meeting with both dealers and farmers and I've had a chance to discuss general business conditions and their outlook for next year. In the U.S., overall both farmer and dealer sentiment remains cautiously optimistic. While there is uncertainty in the soybean market, there is optimism around improved fundamentals that Brent just referenced in the corn, wheat and cotton markets. In addition, we're seeing notable excitement from dealers and customers in our core Midwest markets concerning the 2018 crop where there are record yields in both corn and soybeans. Dealers believe this crop will positively influence equipment demand for 2019. But despite this optimism, it is also important to acknowledge the ongoing uncertainty the industry faces regarding unresolved global trade issues. While many farmers believe these issues will be resolved before next year's harvest there's no doubt trade concerns have had an impact on farmer sentiment over the last several months.
Now let's talk specifics on the industry and the reasons for our constructive view for 2019, which reflect the following four aspects: number one, we are in a replacement market; number two, replacement demand is being augmented by today's precision ag technology; number three, our approach in delivering this technology is uniquely and seamlessly integrated. And finally, the initial response to our 2019 early order programs has been supportive of our view.
Now let's take a closer look at these drivers. First, it is still a replacement market that's because the fleet age has reached its highest point since 2013. And customers are increasingly citing a need for newer equipment due to hours and the age on their machines. Further to the second point, we see evidence that replacement demand is being amplified by the latest precision technology with many examples across our entire large Ag portfolio.
And through the course of my conversations with customers the last few months, it is clear these advanced technologies are driving operational efficiencies and the tangible economic values. Also evident in the growth of our advanced technologies is the critical role being provided by Deere's proprietary and foundational precision technologies such as guidance, telematics, onboard computing and our digital operations center all of which represent up to 20 years of investment. These foundational elements serve as key enablers for our latest advanced technologies and the combination creates the most differentiated and integrated solution in the marketplace. Deere's advantage in this area is further enhanced by the unmatched capabilities of our dealer organization delivering these solutions.
Let's start with product support which is fundamental to our strategy because it ensures our customers get the most performance and uptime from their equipment perhaps the best example is a feature we call John Deere Connected Support, which allows us to remotely help customers monitor their equipment through integrated telematics. We deploy this strategy two years ago and it is now included in the base package for all of our self-propelled large ag equipment. Through John Deere Connected Support, we deploy expert alerts which route predictive maintenance alerts through Deere systems to the local dealer. This allows dealers to proactively contact customers before predicted failure occurs and expedite the repair. This is just one example, but in general our dealers are centralizing their service capabilities so they could take full advantage of the technology we bring to the equipment in order to prevent downtime and maximize our customer's equipment investments. Overall, our dealers also play a critical role in the adoption of precision ag by our customers. Many of our large Ag dealers now employ certified agronomists and are beginning to mainstream precision ag expertise across their dealerships with the intent of helping customers plan and execute their astronomic decisions. Importantly our dealers are making significant investments in both product support and precision ag capabilities. Deere's dealer advantage in this area distinguishes our channel in the industry. Furthermore, we firmly believe a successful precision ag strategy requires a substantial investment from both the OEM and the channel as well as significant collaboration between these two parties. And we are committed to doing just that.
I came across an example of why this is so important just last month was visiting with a very large Midwestern farmer, who is in fact in the process of converting from a multicolored fleet to all green. He cited the economic advantages of utilizing an all green fleet across his entire production system from planting, spraying and harvesting, all leveraging the same integrated technology and seamless data platform and equally as important for this customer was the local dealers ability to supply and support the advanced technologies of this entire fleet. This example also highlights how our strong dealer network has been critical in facilitating replacement demand seen in '18 and continuing into 2019 with the latest results of our early order programs, which I will speak to now. In September, the final phase of the planter and sprayer early order program concluded with orders up mid-single digits over 2018. In addition to higher volume year-over-year, the program included a healthy price increase and resulted in materially higher take rates for advanced precision features like ExactApply sprayers and ExactEmerge planters which were up significantly from last year.
Moving to our combine early order program results through phase two are mixed with volume ending up in the U.S. but down in Canada largely due to a delayed harvest in some other weather-related issues. Importantly, adoption rates for premium features like active yield and Combine Advisor were both higher than last year.
Overall replacement demand continues to drive order activity and we are pleased with the initial response to our early order programs. Furthermore, the 2019 large tractor order book is building and currently running into the second quarter. Customer demand to-date supports our expectations of a continued gradual recovery for large ag equipment in North America, which is still closer to trough volumes than mid-cycle. Key to this gradual recovery is either the continuation of trade flow readjustments which we have seen already some progress in or a trade resolution between the U.S. and China.
Turning to Slide 10, I'd like to elaborate on Deere's journey in Brazil and provide insights into the current environment. Deere began its Brazilian operation in 1979 with a 20% acquisition of SLC and the production of combines only. By the 1990s, we foresaw the country's enormous ag potential and began investing heavily in the region. Launched our financial operations and established the region's preeminent dealer channel. Over the last decade, Deere has tripled its tractor market share and now enjoys the leading brand position. We've also localized the complete soybean production system portfolio including tractors, planters, sprayers and combines, while achieving very attractive margins. Further augmenting this complete production system portfolio is our best-in-class distribution channel and Deere's latest precision ag offerings, which also lead the industry and further widened our competitive advantage. After recently traveling to Brazil this month and visiting with both dealers and customers I can report the environment in Brazil is quite positive with farmer sentiment boosted by recent election results and the outlook for expanding acreage. Despite some modest near-term pressure on freight and input prices, we remain very optimistic on the region's long-term prospects and we'll continue to execute our product technology and channel strategy. By region, our 2019 Ag & Turf industry outlooks are summarized on Slide 11. Industry sales in the U.S. are forecast to be flat to up 5% for 2019. As I mentioned already expectations for the year are largely driven by replacement demand as customers need to update their age fleets and upgrade to more efficient technologies. Further supporting new equipment demand used inventories are down over one-third from their peak in 2014, while pricing has remained stable with good low hour Deere machines selling quickly and bringing strong prices. As mentioned, Midwest dealers are reporting the high yields of this fall's crop should have a positive impact on equipment demand particularly as customers begin reviewing their tax scenarios. For our small ag segment, compact tractor show a strong order book for 2019 driven by a healthy economy and GDP growth.
This is helping to offset softness for our livestock and dairy customers, although the order bank for utility tractors and round bailers has been very solid. Moving on to the EU 28, the industry outlook is forecast to be flat in 2019; our strength in the U.K. and France is offsetting weather-related challenges in northern Germany and Scandinavia. In South America, industry sales of tractors and combines are projected to be flat to up 5% for the year. This is primarily driven by solid industry fundamentals in Brazil which is benefiting from a positive reaction to the political election, commodity price premiums and expanding acreage opportunities. However, growth in Argentina is likely to remain challenged in the near-term as the country battles high inflation and political uncertainty. Shifting to Asia, industry sales are expected to be flat to down slightly as key growth markets begin to cool.
Lastly, industry retail sales of turf and utility equipment in the U.S. and Canada are projected to be flat to up 5% in '19, based on the general economic factors mentioned earlier. Putting all of this together on Slide 12, fiscal year 2019 Deere sales of worldwide Ag & Turf equipment are now forecast to be up approximately 3%, which includes a negative currency impact of about two points. Furthermore, we anticipate sales in '19 to mirror a similar quarterly seasonality as we saw in 2018. The Ag & Turf Division operating margin is forecast to be up approximately 12.5%. I'll now turn it back over to Brent.