The world's largest farm equipment show is underway in California and farmers from across the U.S. are there to check out the newest innovations and offerings from equipment makers like John Deere.

The World Ag Expo is taking place on a 60-acre field filled with tractors and other equipment. John Deere unveiled its latest skid loader to much fanfare. Farmers lined up for a chance to test drive the newest offering from the agricultural giant and they later buzzed about its speed and efficiency .

Harlan Reese is a farmer from Illinois who grows wheat and corn and attended the event; he told The Los Angeles Times "when times are good, you have to invest in your operation." While "it's still expensive to farm right now, times are still good," he said. Farmers in the U.S. are currently benefiting from record commodity prices that helped U.S. farming income rise to record levels in 2010.

In California, the climbing prices are good news to farmers and lawmakers: The state's agricultural sector accounts for $34 billion every year in sales. The event reflected the health of the farm industry, said Steven Knudsen, a spokesman for the event. "Business is better than last year. When people are smiling, you see that things are good."