REPLACEMENT CYCLE OF U.S. AG TRACTORS AND COMBINES CONTINUES TO IMPACT SALES NUMBERS, CANADA CONTINUES TO STRUGGLE, PER AEM REPORT
U.S. sales numbers of Ag tractors and combines were up in almost every category, according to the latest AEM sales data.
"Although the overall numbers continue to be strong, it is a mixed bag when you get into specific categories. The Under-40 HP tractors continue to be solid and are a reflection of the overall economy,” said Curt Blades, AEM senior vice president, Agriculture. “However farmers and ranchers across the country continue to face long-term uncertainty with reinvestments in their operations with lowering commodity prices and continuing concerns over trade and tariffs.”
Total 2-wheel-drive tractors experienced an 11.8 percent growth in sales from April of 2018. Specifically, under-40 HP tractor sales grew 16.6 percent, 100-plus-HP tractor sales grew 6.6 percent, and 40-100-HP tractors were the only tractors to see a decline in sales at a small 1.8 percent decrease.
Additionally, 4-wheel-drive tractor sales saw a 32.2 percent growth from April of 2018. Between the increase of sales between total 2-wheel-drive tractors and 4-wheel-drive tractors, overall farm tractor sales experienced 12 percent growth. However, self-propelled combines did see a 4.2 percent drop in sales.
On the other hand, Canada sales numbers continue to struggle, raising concern at AEM. Under-40 HP tractors were the only category to see a growth compared to April of 2018, at a 16.1 percent increase. Every other category experienced a decrease in sales, resulting in a 1.5 percent drop in total 2-wheel-drive tractors and a 15.7 percent drop in 4-wheel-drive tractors. Likewise, self-propelled combines dropped 26.7 percent in sales.
“While numbers were up for the U.S. in April, the ongoing trade war has us concerned about the overall farm machinery market moving forward,” said Blades. “Farmers throughout the Midwest are in the middle of planting their 2019 crops. There are a number of uncertainties impacting the value of this crop – including the ability to trade with China. These uncertainties in the market can potentially have a negative impact on overall equipment sales. ”
The full reports can be found in the Market Data section of the AEM website under Ag Tractor and Combine Reports: https://www.aem.org/market-data/.
AEM is the North American-based international trade group representing off-road equipment manufacturers and suppliers, with more than 1,000 companies and more than 200 product lines in the agriculture and construction-related industry sectors worldwide. The equipment manufacturing industry supports 1.3 million jobs in the U.S., and 149,000 more in Canada. Equipment manufacturers also contribute $188 billion combined to the U.S. and Canadian economies. AEM is celebrating its 125th anniversary in 2019. Learn more about AEM at https://www.aem.org.