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<SEC-DOCUMENT>0001003297-10-000249.txt : 20101202
<SEC-HEADER>0001003297-10-000249.hdr.sgml : 20101202
<ACCEPTANCE-DATETIME>20101013142930
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001003297-10-000249
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20101013

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			ALAMO GROUP INC
		CENTRAL INDEX KEY:			0000897077
		STANDARD INDUSTRIAL CLASSIFICATION:	FARM MACHINERY & EQUIPMENT [3523]
		IRS NUMBER:				741621248
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1627 E WALNUT
		CITY:			SEGUIN
		STATE:			TX
		ZIP:			78155
		BUSINESS PHONE:		8303791480

	MAIL ADDRESS:	
		STREET 1:		P.O. BOX 549
		STREET 2:		1627 EAST WALNUT
		CITY:			SEGUIN
		STATE:			TX
		ZIP:			78155
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<html>

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<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">October 13, 2010</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">Ms. Kate Tillan</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">Assistant Chief Accountant</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">Division of Corporation
Finance</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">Securities and Exchange
Commission</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">100 F Street, N.E.</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">Washington, DC&nbsp; 20459-0306</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">RE:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Alamo Group Inc.</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form 10-K for the
year ended December 31, 2009</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Filed March 15,
2010</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Form 10-Q for the
quarter ended June 30, 2010</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; File No.&nbsp;
001-13854</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">Dear Ms. Tillan,</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">We have received your letter,
dated September 30, 2010, to Dan E. Malone, Executive Vice President &amp;
Chief Financial Officer of Alamo Group Inc. (&#147;Alamo&#148; or the &#147;Company&#148;), requesting
information concerning comments you had on the above referenced filings.&nbsp; I
have listed each question below followed by a response that has been bolded for
your convenience.&nbsp; </font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">We appreciate the opportunity
to provide information and to clarify any items that may be unclear.&nbsp; We hope
these answers will be sufficient in helping understand our disclosures.</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.3in;margin-bottom:0in;
margin-left:.3in;margin-bottom:.0001pt'><i><font size="2">Form
10-K for the fiscal Year Ended December 31, 2009</font></i></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.3in;margin-bottom:0in;
margin-left:.3in;margin-bottom:.0001pt'><i><font size="2">&nbsp;</font></i></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">Item
<u>9A.&nbsp; Controls and Procedures, page 34</u></font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">1.&nbsp;&nbsp;&nbsp;We note that the company&#146;s Chief Executive
Officer and Chief Financial Officer concluded that the design and operation of
the company&#146;s disclosure controls and procedures were effective.&nbsp; In future
filings please revise the disclosure to remove the qualification of the
conclusion related to <i>the design and operation</i> of your disclosure
controls and procedures.&nbsp; Refer to Item 307 of Regulation S-K. </font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<b><font size="2">In
future filings, we will revise the disclosure required by Item 307 of
Regulation S-K to remove the qualification of the conclusion related to the
design and operation of our disclosure and procedures.</font></b></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<u><font size="2">Financial
Statements</font></u></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;margin-right:.5in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<u><font size="2">Note
1. Significant Accounting Policies, page 49</font></u></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;margin-right:.5in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">2.&nbsp;&nbsp;&nbsp;You disclose that cash equivalents
are highly liquid investments with a maturity date no longer than 90 days.&nbsp;
Please tell us how you considered the definition of cash equivalents which states
that generally only investments with <i>original </i>maturities of three months
or less qualify under that definition. </font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>&nbsp;</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;text-align:center'>
	<hr size=2 width="100%" noshade color=navy align=center></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<font face="Arial" size="2"><br clear=all
style='page-break-before:always'></font>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Ms. Kate Tillan</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Securities and Exchange
Commission</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">October 13, 2010</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Page </font><font size="2">2</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<b><font size="2">All
of our cash equivalents consist of investments with original maturities of
three months or less.&nbsp; In future filings, we will change our disclosure as
follows: The Company considers all highly-liquid investments with original
maturities of three months or less to be cash equivalents.</font></b></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">3.&nbsp;&nbsp;&nbsp;You disclose that inventories of
U.S. operating subsidiaries are <i>principally</i> stated at the lower of cost
(last-in, first-out method) (&#147;LIFO&#148;) or market.&nbsp; Please tell us why you used
the word <i>principally</i>.&nbsp; Tell us your other accounting policies for these
inventories and qualify, to the extent practicable, the amount of inventories
recorded using these other methods.</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<b><font size="2">&nbsp;</font></b></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<b><font size="2">The
Company uses the LIFO method for its U.S. operating subsidiaries with the
exception for one its smaller companies which uses the FIFO method and is less
than 1% of total U.S. inventory.&nbsp; The Company believes that this is immaterial
for disclosure.</font></b></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-family:Arial'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">4.&nbsp;&nbsp;&nbsp;Please tell us about the nature of
your various promotional programs with customers and how you account for and value
the related reserves.&nbsp; Tell us the amounts of adjustments you have made to your
sales reserves during the periods presented in the financial statements. </font>
</p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>
<b><font size="2">As
is customary in our industry, a pre-season program of our agricultural products
is available to our dealers during the fall of each year.&nbsp; The program allows
for greater sales discounts on orders placed during this time.&nbsp;&nbsp; All discounts
relating to sales are accrued based on the discount allowed under each program
at the time the shipment occurs.&nbsp; These discounts represent an average of
historical amounts taken and are adjusted as program terms change.&nbsp; The
reserves for discounts are reviewed and adjusted quarterly.</font></b></p>
<p style='margin-bottom:.0001pt;font-family:Arial;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>
<b><font size="2">&nbsp;</font></b></p>
<p style='margin-bottom:.0001pt;font-family:Arial;text-align:justify; margin-left:0in; margin-right:0in; margin-top:0in'>
<b><font size="2">The
amount of the adjustments to sales reserves for all periods presented are
detailed in the table in footnote 3 on page 55.&nbsp;&nbsp; </font></b></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-family:Arial'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">5.&nbsp;&nbsp;&nbsp;We note your statement that from
time to time, revenue is recognized under a bill and hold arrangement.&nbsp; Please
tell us the nature of these arrangements and your accounting basis for
recognizing these revenues.&nbsp; Tell us how you considered SAB Topic 13.A.3. &nbsp;Further,
clarify the amounts of bill and hold sales recognized in your financial
statements for each period presented.&nbsp; </font></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-family:Arial'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial; margin-left:0in; margin-right:0in; margin-top:0in'>
<b><font size="2">We periodically are requested by
customers to hold products on our premises until the customer can arrange for
shipment of the product to their facilities.&nbsp; When this happens, the customer
will send written correspondence to the Company requesting that we hold their
products until shipment can be arranged.&nbsp; The written correspondence includes a
statement that the customer has accepted the risk of loss on the products and
title has passed. If the written correspondence does not include all designated
bill and hold criteria, we do not recognize the revenue related to that sale
until the product is delivered to the customer. These types of transactions are
fairly common in our industry given the nature of the equipment and the fact
that from time to time customers have difficulty arranging for delivery of the
products.&nbsp; The Company has not had any issues with customers cancelling orders
and refusing payments after requesting bill and hold sales or extending payment
terms for bill and hold sales.</font></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>&nbsp;</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;text-align:center'>
	<hr size=2 width="100%" noshade color=navy align=center></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<font face="Arial" size="2"><br clear=all
style='page-break-before:always'></font>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Ms. Kate Tillan</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Securities and Exchange
Commission</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">October 13, 2010</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Page </font><font size="2">3</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-size:12.0pt;font-family:"Times New Roman";margin:0in;margin-bottom:.0001pt;text-indent:0in'>&nbsp;</p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-bottom:.0001pt;text-indent:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
<b><font size="2">&nbsp;</font></b></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-bottom:.0001pt;text-indent:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
<b><font size="2">The Company accounts for its bill
and hold revenue arrangements consistent with the provisions of Financial
Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic
605, Revenue Recognition, and SAB Topic 13.A.3, and recognizes revenue when the
risk of ownership has passed to the customer and a fixed commitment to purchase
the goods is received. We recognize revenue on bill and hold arrangements when
the following seven criteria have been met: 1) the risk of ownership has passed
to the buyer; 2) the buyer has made a fixed commitment to purchase the goods;
3) the buyer, and not the seller, has requested that the transaction is on a bill
and hold basis; 4) there is a fixed schedule for delivery of the goods,
indicating a delivery date that is reasonable and consistent with the buyers
business purpose; 5) the buyer has not retained any specific performance
obligations such that the earnings process is not complete; 6) the ordered
goods are segregated from the sellers inventory and are not being used to fill
other orders; and 7) the product must be complete and ready for shipment. In
addition, payment must be received and/or the customer has agreed to fixed
payment dates not contingent upon product delivery or any other performance
requirement.</font></b></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-bottom:.0001pt;text-indent:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
<b><font size="2">&nbsp;</font></b></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-bottom:.0001pt;text-indent:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
<b><font size="2">Total bill and hold sales for which
revenue was recognized in 2009, 2008 and 2007 were approximately 1.3%, 0.6% and
0.6% of total revenue, respectively. The Company believes this is immaterial
for disclosure.</font></b></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt'><font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<u><font size="2">Note
3. Valuation and Qualifying Accounts, page 55</font></u></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;margin-right:.5in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">6.&nbsp;&nbsp;&nbsp;In future filings, please also
disclose, consistent with FASB ASC 460-10-50-8, the aggregate changes in the
liability for accruals related to preexisting warranties (including adjustments
related to changes in estimates).</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<b><font size="2">In
future filings, we will disclose the aggregate changes in the liability for
accruals related to preexisting warranties (including adjustments related to
changes in estimates) consistent with FASB ASC 460-10-50-8.</font></b></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt'><font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<u><font size="2">Note
20. Acquisitions and Investments, page 74</font></u></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;margin-right:.5in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">7.&nbsp;&nbsp;&nbsp;We note that the total purchase
price for Bush Hog has been allocated on a provisional basis.&nbsp; Please tell us
why the initial accounting was incomplete as of December 31, 2009 and how you
considered the disclosure requirements of FASB ASC 805-10-50-6.</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-bottom:.0001pt;text-indent:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
<b><font size="2">In accordance with FASB ASC 805,
since the initial accounting for the Bush Hog acquisition was not complete, we
reported provisional amounts for various assets and liabilities. The
provisional amounts were determined based on available information at the
acquisition date, consistent with the recognition and measurement procedures of
ASC 805. The available information consisted of draft third party valuations
and an analysis of information available at the time of filing the Form 10-K.
The Company continues to evaluate the purchase price allocation, including the
opening fair value of inventory, accounts receivable, property, plant and
equipment, accrued liabilities and deferred taxes. If new information is
obtained about facts and circumstances that existed at the acquisition date,
that identifies adjustments to the assets and liabilities that existed at the
acquisition date, the acquisition accounting will be revised to reflect the
adjustments to the provisional amounts initially recognized, and will result in
an adjustment to the gain on bargain purchase. </font></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>&nbsp;</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;text-align:center'>
	<hr size=2 width="100%" noshade color=navy align=center></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<font face="Arial" size="2"><br clear=all
style='page-break-before:always'></font>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Ms. Kate Tillan</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Securities and Exchange
Commission</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">October 13, 2010</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Page </font><font size="2">4</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-bottom:.0001pt;text-indent:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
<b><font size="2">&nbsp;</font></b></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-bottom:.0001pt;text-indent:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
<b><font size="2">We believe that our disclosures
address that the initial accounting is incomplete, and the specific assets and
liabilities for which the initial accounting is incomplete, in accordance with
ASC 805-10-50-6.</font></b></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-bottom:.0001pt;text-indent:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
<b><font size="2">&nbsp;</font></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;margin-right:.5in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">8.&nbsp;&nbsp;&nbsp;Please tell us how you determined
the fair value of the 1.7 million shares issued to acquire Bush Hog on October
22, 2009.&nbsp; In future filings, please disclose the method of determining the
fair value consistent with FASB ASC 805-30-50-1(b)(4).</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-bottom:.0001pt;text-indent:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
<b><font size="2">The Company, with the assistance of
a third party valuation firm, determined the fair value of the 1.7 million
shares issued to acquire Bush Hog. The purchase price paid by Alamo for Bush
Hog consisted of 1.7 million shares of restricted stock of the Company.&nbsp;
Because the restricted stock was issued in an unregistered private transaction,
resale of the shares is restricted and the shares may be resold only if
registered or sold in a transaction exempt from the registration requirements
of the Securities Act of 1933 (the &#147;Securities Act&#148;), including pursuant to Rule
144 under the Securities Act.&nbsp; Under Rule 144, the restricted stock is subject
to, among other things, an initial 6-month holding period before any of the
shares can be sold in the public market.&nbsp; Accordingly, the fair value of the
1.7 million shares is based on the public market price of Alamo common stock
less a discount for lack of marketability associated with the 6-month holding
period.&nbsp; We utilized an Asian put option model to measure the discount for lack
of marketability.&nbsp; An Asian put option is an option that entitles the holder to
a payoff based on the average price of an underlying asset, over a
predetermined period.</font></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;margin-left:1.0in;text-indent:-1.0in'>&nbsp;</p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-bottom:.0001pt;text-indent:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
<b><font size="2">In future filings, we will disclose
the method of determining the fair value of the shares issued.</font></b></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-bottom:.0001pt;text-indent:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
<b><font size="2">&nbsp;</font></b></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-family:Arial'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">9.&nbsp;&nbsp;&nbsp;With regards to the gain on
bargain purchase of $27,689,000 tell us how you considered the provisions of
ASC 805-30-25-4.&nbsp; Discuss the process of reassessing the identified assets and
liabilities.</font></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-family:Arial'>
<font size="2">&nbsp;</font></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-bottom:.0001pt;text-indent:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
<b><font size="2">Pursuant to ASC 805-30-25-4, prior
to recognizing the gain on bargain purchase, the Company reassessed whether it
had correctly identified all of the assets acquired and liabilities assumed. We
then reviewed the procedures used to measure the assets acquired and
liabilities assumed and the consideration transferred. The objective of the
review was to ensure that the measurements appropriately reflected
consideration of all available information as of the acquisition date. As noted
in our footnote, the Company believes that it was able to acquire Bush Hog for
less than the fair value because of (i) the Company&#146;s unique position as a
market leader in this industry segment and (ii) the seller&#146;s intent to exit its
Bush Hog operations. Bush Hog was an unprofitable venture that had incurred
significant losses over the last four years. The seller approached the Company
through a competitive bid process by an independent broker in an effort to sell
Bush Hog and exit the agricultural equipment manufacturing business that no
longer fit its strategy. With the seller&#146;s intent to exit the agricultural
manufacturing business segment and the</font></b><font size="2"> </font><b>
<font size="2">Company&#146;s position as a market leader, the Company
was able to agree on a favorable purchase price even in a competitive bid
situation.</font></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>&nbsp;</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;text-align:center'>
	<hr size=2 width="100%" noshade color=navy align=center></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<font face="Arial" size="2"><br clear=all
style='page-break-before:always'></font>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Ms. Kate Tillan</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Securities and Exchange
Commission</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">October 13, 2010</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Page </font><font size="2">5</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-family:Arial'>
<b><font size="2">&nbsp;</font></b></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp; <u>Exhibits
31.1, 31.2 and 31.3</u></font></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-family:Arial'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">10.&nbsp;We note that the identification of the certifying
individual at the beginning of the certification required by Exchange Act Rule
13a-14(a) also includes the title of the certifying individual.&nbsp; In future
filings, the identification of the certifying individual at the beginning of
the certification should be revised so as not to include the individual&#146;s
title.&nbsp; Refer to Item 601(31) of Regulation S-K.&nbsp; This comment applies to your
interim filings as well. </font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;margin-right:.5in'>
<b><font size="2">In
future filings, we will not include the individual&#146;s title at the beginning of
the certification in accordance with Item 601(b)(31) of Regulation S-K.</font></b><font size="2">
</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt'><font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<u><font size="2">Form
10-Q for the Quarterly Period Ended June 30, 2010</font></u></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;margin-right:.5in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<u><font size="2">Interim
Consolidated Balance Sheets, page 3</font></u></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;margin-right:.5in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">11.&nbsp;You refer to the December 31, 2009 balances as audited
in the header for the column.&nbsp; We note from your disclosure in Note 1 on page 6
that this information is only derived from your audited financial statements.&nbsp;
Since the information is not audited, please revise future filings to remove
references to the information as audited.</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<b><font size="2">In
future filings, we will remove references to the information in Note 1 as
audited financial statements.</font></b></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<u><font size="2">Note
2 Acquisitions, page 6</font></u></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">12.&nbsp;You disclose that your purchase price allocations
reflect provisional estimates.&nbsp; Please tell us why the estimates are
provisional.&nbsp; Explain the nature of the additional information necessary to
identify and measure these items and the procedures you are taking to obtain
this information.&nbsp; Discuss your consideration of FASB ASC 805-10-25-14.&nbsp; For
example, you disclose in Note 20 of your December 31, 2009 Form 10-K that you
are continuing to evaluate the purchase price allocation for inventory,
accounts receivable, property, plant and equipment, accrued liabilities and
deferred taxes.&nbsp; In Note 2 of your June 30, 2010 Form 10-Q you continue to
disclose that you are evaluating each of these accounts.&nbsp; Under FASB ASC
805-10-25-14, the measurement period should end as soon as the company receives
the information it was seeking about facts and circumstances that existed as of
the acquisition date or learns that more information is not obtainable.</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>&nbsp;</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;text-align:center'>
	<hr size=2 width="100%" noshade color=navy align=center></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<font face="Arial" size="2"><br clear=all
style='page-break-before:always'></font>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Ms. Kate Tillan</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Securities and Exchange
Commission</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">October 13, 2010</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Page </font><font size="2">6</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-family:Arial;margin-left:0in'>
<b><font size="2">Each
quarter, the Company continues its review of all provisional amounts during the
measurement period. If new information obtained about facts and circumstances
that existed at the acquisition date identifies adjustments to the assets and
liabilities initially recognized, as well as any additional assets or
liabilities that existed at the acquisition date, the acquisition accounting
will be revised to reflect the resulting adjustments to the provisional amounts
originally recognized.&nbsp; The acquiree&#146;s operations were extensive and complex
and we are still gathering information to complete the acquisition accounting.
The information we are still gathering is mainly finalizing appraisals for
property, plant and equipment and gathering information about and valuation of
inventory, accounts receivable and accrued liabilities based on facts that
existed as of the date of the acquisition.</font></b></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-family:Arial'>
<font size="2">&nbsp;</font></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-family:Arial'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">13.&nbsp;Please tell us the nature and amount of any
adjustments you have made to the provisional amounts originally recorded for
the acquisition.&nbsp; </font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<b><font size="2">Based
on the analysis performed (as noted in our response to number 12 above) through
June 30, 2010, no adjustments have been made to the provisional amounts.</font></b></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;font-family:Arial'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<u><font size="2">Definitive
&nbsp;Proxy Statement on Schedule 14A</font></u></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;margin-right:.5in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<u><font size="2">The
Board Role in Risk Oversight, page12</font></u></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;margin-right:.5in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">14.&nbsp;It does not appear you have not included any
disclosure in response to Item 402(s) of Regulation S-K other than describing
the Compensation Committee&#146;s role.&nbsp; Please advise us of the basis for your
conclusion that disclosure is not necessary and describe the process you
undertook to reach that conclusion.</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt'><font size="2">&nbsp;</font></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-bottom:.0001pt;text-indent:0in; margin-left:0in; margin-right:0in; margin-top:0in'>
<b><font size="2">Members of the Company&#146;s senior
management reviewed the compensation policies and practices relating to the
compensation provided to the Company&#146;s employees to determine whether such
policies and practices are reasonably likely to have a material adverse effect
on the Company.&nbsp; Based on such review, the Company determined that any risks
associated with the Company&#146;s compensation policies and practices were not
reasonably likely to have a material adverse effect on the Company.&nbsp; In
reaching that conclusion, management considered, among other factors, that the
Company&#146;s salary and annual bonus programs, the two main forms of compensation
provided to the Company&#146;s employees, were appropriately mitigated because
salary levels are generally discretionary in nature and considered on an annual
basis.&nbsp; In addition, the Company considered the overall level of its pay
practices, including its incentive compensation levels and practices, in making
this determination.</font></b></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt'><font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<u><font size="2">Compensation
Discussion and Analysis, page 13</font></u></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;margin-right:.5in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">15.&nbsp;We note your disclosure related to maintaining &#147;competitive&#148;
levels of compensation.&nbsp; Please explain how you determine whether compensation
levels are competitive and whether you engage in any benchmarking of total
compensation.&nbsp; See Item 402(b)(2)(xiv) of Regulation S-K.</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt'><font size="2">&nbsp;</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>&nbsp;</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;text-align:center'>
	<hr size=2 width="100%" noshade color=navy align=center></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<font face="Arial" size="2"><br clear=all
style='page-break-before:always'></font>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Ms. Kate Tillan</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Securities and Exchange
Commission</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">October 13, 2010</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Page </font><font size="2">7</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-left:0in;text-indent:0in'>
<b><font size="2">The Company&#146;s proxy statement states
that the Company&#146;s compensation programs are intended to provide competitive
base salaries and short-term and long-term incentives to the Company&#146;s
management.&nbsp; The Company endeavors to have its pay be &#147;competitive&#148; so as to
retain valued employees.&nbsp; The Company&#146;s success in retaining key employees is
evidenced by the fact that the senior management of the Company has an average
tenure of more than 10 years with the Company.&nbsp; In setting management pay
levels, the Compensation Committee considers the Company&#146;s historical pay
practices, the individual&#146;s past pay and Company and individual performance.&nbsp;
As mentioned above, the Committee sets salary and bonus annually and adjusts
appropriately based on Company and individual performance.&nbsp; </font></b></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-left:0in;text-indent:0in'>
<b><font size="2">The Company does not engage in any
benchmarking of total compensation. Almost all of the Company&#146;s direct
competitors are privately held or divisions of public companies and the Company
does not have access to the information regarding their level of compensation.
</font></b></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<u><font size="2">Base
Salary, page 14</font></u></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">16.&nbsp;Please revise your future filings to describe the
elements of corporate and individual performance that were considered by the
compensation committee and that resulted in the compensation decisions for your
named executive officers for the periods presented.&nbsp; For example, from your
revised disclosure, it should be clear how the committee decided the amount of
the base salary to pay each named executive officer, how the amount of each
disclosed increase was determined, and how the specific amount of the
differences among compensation of the named executives was determined.&nbsp; See
Item 402(b)(2)(v) of Regulation S-K.</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt'><font size="2">&nbsp;</font></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-left:0in;text-indent:0in'>
<b><font size="2">In future filings the Company will
describe the elements of corporate and individual performance that were
considered by the compensation committee and that resulted in the compensation
decisions for its named executive officers for the periods presented. </font>
</b></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt'><font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">17.&nbsp;We note your disclosure on page 14 that salaries &#147;had
been frozen since May 1, 2008&#148; until January 10, 2010.&nbsp; Please tell us how this
freeze reflected in your Summary Compensation Table.&nbsp; </font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt'><b><font size="2">&nbsp;</font></b></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-left:0in;text-indent:0in'>
<b><font size="2">As disclosed on page 14 of the
Company&#146;s proxy statement, the salaries for a majority of our named executive
officers had been frozen since May 1, 2008, except for the Managing Director of
our European operations, Mr. Geoff Davies. &nbsp;The freeze occurred four months
into 2008.&nbsp; Since during the first four months of 2008 salaries were below the
level at which salaries were frozen, salaries for the named executive officers for
the full year 2008 are slightly below salaries for 2009 (which are at the level
at which the salaries were frozen). Such difference is reflected in the Summary
Compensation Table.&nbsp; As disclosed in the proxy statement, salary increases for
2010 with the exception of Mr. Davies and Mr. Pummell were approved by the
Compensation Committee effective January 10, 2010, and will consequently be
higher than 2009 levels. </font></b></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<u><font size="2">Incentive
Compensation Plan, page 14</font></u></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">18.&nbsp;We note your disclosure in the second paragraph on page
15 that you do not publicly disclose the specific quantitative targets for the
objective component of incentive compensation.&nbsp; Please provide such disclosure
in your future filings, as applicable.&nbsp; To the extent you believe that
disclosure of such information, on a historical basis, would result in
competitive harm such that the information could be excluded under Instruction
4 to Item 402(b) of Regulation S-K, please provide us with a detailed
explanation supporting your conclusion.&nbsp; To the extent that it is appropriate
to omit specific targets or performance objectives, you are required to provide
appropriate disclosure pursuant to Instruction 4 Item 402(b) of Regulation
S-K.&nbsp; Refer also to Question 118.04 of Regulation S-K Compliance and Disclosure
Interpretations available on our website at  http://www.sec.gov/divisions/corpfin/guidance/regs-kinterp.htm .&nbsp;
In discussing how difficult or likely it will be to achieve the target levels
or other factors, you should provide as much detail as necessary without
disclosing information that poses a reasonable risk of competitive harm.&nbsp;
</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>&nbsp;</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;text-align:center'>
	<hr size=2 width="100%" noshade color=navy align=center></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<font face="Arial" size="2"><br clear=all
style='page-break-before:always'></font>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Ms. Kate Tillan</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Securities and Exchange
Commission</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">October 13, 2010</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Page </font><font size="2">8</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;margin-right:.5in'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;margin-right:.5in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-left:0in;text-indent:0in'>
<b><font size="2">The Company provides annual
incentive compensation to its senior management, including its named executive
officers (&#147;NEOs&#148;), through its Incentive Compensation Plan (the &#147;ICP&#148;). Annual
awards under the ICP include a 75% objective component and a 25% subjective
component. </font></b></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-left:0in;text-indent:0in'>
<b><font size="2">For 2009, the Committee recommended,
and the Board of Directors approved, the criteria for the objective and
subjective components of the plan as more fully discussed in the proxy
statement. </font></b></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-left:0in;text-indent:0in'>
<b><font size="2">For all NEOs with the exception of
Mr. Davies and Mr. Pummell, the objective component was a function of actual
and target diluted earnings per share of the Company. In future filings the
Company will disclose its historical diluted earnings per share targets for the
objective component of ICP awards.&nbsp; </font></b></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-left:0in;text-indent:0in'>
<b><font size="2">The objective component of the ICP
awards to Mr. Davis and Mr. Pummell was based on target earnings before
interest and taxes (EBIT) and inventory turnover for their respective business
units.&nbsp; The Company does not publicly disclose this information and the Company
does not intend to disclose targets under the ICP that are based on regional or
divisional performance since disclosure of such targets, even on an historical
basis, would provide competitors with an unfair advantage particularly since
the Company is a major player in many of the niche markets in which it operates.&nbsp;
The disclosure of such goals would result in competitive harm to the Company as
it would allow competitors, especially those in the respective regions or
markets, to understand the confidential strategic business plans of the Company
in each region and/or market.&nbsp; Specifically, disclosure of regional or business
unit quantitative performance goals would enable competitors to understand: 1)
the Company&#146;s strategic plans relating to revenue, operating profit and, thus,
spending in a particular region or market, 2) the strategic weight the Company
puts on each region or market and 3) the extent to which the Company calibrated
those plans based on market/competitive conditions.&nbsp; Given the dynamic nature
of the Company&#146;s business, disclosure of one year&#146;s regional or divisional
quantitative performance goals will provide competitors with insight into the
Company&#146;s short term priorities.&nbsp; More importantly, in future proxy statements
as each additional year is discussed, the pattern of the Company&#146;s strategies
would become much more apparent.&nbsp; Thus, a competitor will be able to gain
predictive capability by reviewing the regional and market disclosure made in
the 2013 proxy with respect to 2012, the 2012 proxy statement with respect to
2011 and so on, to the detriment of Alamo.&nbsp; Competitors could understand the
Company&#146;s strategic decisions and see how the Company&#146;s focus shifted over
time.&nbsp; Competitors might then recognize how the Company reacts to competitive
pressure and market circumstances and predict future behavior. Accordingly, we
do not believe that disclosure of specific regional or divisional performance
goals is required because it would result in competitive harm to the Company
and its stockholders.</font></b></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>&nbsp;</p>
<div style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;text-align:center'>
	<hr size=2 width="100%" noshade color=navy align=center></div>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<font face="Arial" size="2"><br clear=all
style='page-break-before:always'></font>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Ms. Kate Tillan</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Securities and Exchange
Commission</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">October 13, 2010</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font style="font-size: 10.0pt">Page </font><font size="2">9</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;line-height:1.0pt'>&nbsp;</p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;margin-right:.5in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<u><font size="2">Equity
Awards Programs, page 17</font></u></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;margin-right:.5in'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-top:0in;margin-right:.5in;margin-bottom:0in;
margin-left:.5in;margin-bottom:.0001pt;text-indent:-.25in'><font size="2">19.&nbsp;Please revise future filings to explain how you make
your equity award determination with respect to each named executive officer
for the period presented.&nbsp; For example, from your revised disclosure, it should
be clear how the committee determined the number of stock options and the
number of shares underlying the stock options that were awarded, the elements
of performance and company position considered, how the determination was made
as to when the awards should be granted, and why those awards varied among the
named executive officers in terms of type of award, amount of award, the plan
under which award was granted.</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-top:0in;margin-right:0in;margin-bottom:12.0pt;margin-left:.5in;text-indent:-.5in;font-family:"Arial";margin-left:0in;text-indent:0in'>
<b><font size="2">In future filings the Company will
explain how it makes its equity award determinations with respect to each named
executive officer for the period presented. </font></b></p>
<p style='margin-right:0in;margin-left:0in;font-family:"Arial";'><font size="2">We confirm that Alamo Group
Inc. is responsible for the adequacy and accuracy of the disclosures in our
filings; that staff comments or changes to disclosure in response to staff
comments do not foreclose the Commission from taking any action with respect to
the filing; and that Alamo Group Inc. may not assert staff comments as a
defense in any proceeding initiated by the Commission or any person under the
federal securities laws of the United States.&nbsp; </font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">We
hope these responses will provide you with the information you need.&nbsp; Please call
me if you need any further information at (830) 372-9620.</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in;text-align:justify; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in;text-align:justify; margin-left:0in; margin-top:0in'>
<font size="2">Sincerely,</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in;text-align:justify; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in;text-align:justify; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in;text-align:justify; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in;text-align:justify; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;/s/ Richard J. Wehrle</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;margin-right:.5in;text-align:justify'>&nbsp;</p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in;text-align:justify; margin-left:0in; margin-top:0in'>
<font size="2">Richard J. Wehrle</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in;text-align:justify; margin-left:0in; margin-top:0in'>
<font size="2">Vice President and Controller</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in;text-align:justify; margin-left:0in; margin-top:0in'>
<font size="2">&nbsp;</font></p>
<p style='margin-bottom:.0001pt;font-family:Arial;margin-right:.5in; margin-left:0in; margin-top:0in'>
<font size="2">cc:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mr.
Ronald A. Robinson, President and CEO of Alamo Group Inc.<br>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Mr. Dan
E. Malone, Executive Vice President and Chief Financial Officer of Alamo Group
Inc.</font></p>
<p style='margin:0in;margin-bottom:.0001pt;font-size:12.0pt;font-family:Arial;'>
<font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr. David
Morris, Chairman of the Audit Committee of Alamo Group Inc. </font></p>

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