SMALL-TRACTOR SALES SLIP IN JULY BUT STILL MARKET LEADER
While U.S. retail sales of farm tractors under 40HP in July declined 6.3 percent, the year-to-date total was up 9.8 percent compared to last year, according to the latest monthly data from the Association of Equipment Manufacturers (AEM), the leading trade organization for off-road equipment manufacturers and suppliers.
U.S. retail sales for 2WD tractors 40-100HP declined 23.3 percent in July and were down 6.1 percent year-to-date.
Sales of 2WD 100+HP tractors in the U.S. declined 24.9 percent for July, with year-to-date sales down 24.0 percent, while 4WD tractors dropped 48.3 percent year-over-year and were down 33.6 percent year-to-date.
Combine sales declined 16.2 percent for July and recorded a 22.0 percent drop for year-to-date sales.
Charlie O’Brien, AEM senior vice president, provided some insights:
“The good news is that overall retail sales for small hp tractors are still above the 5-year trends.
“For the under 40 HP tractors, this is the first time in 2016 that we have seen negative year-over-year comparison for the month. For 40-100HP tractors, while 2016 year-over-year sales have fluctuated, the July decline appears to be significantly higher, and a drop this large has not been seen since October 2009.
“For combines, the positive growth in sales last month compared to the same month last year was not sustainable, as we are back in negative territory; Sales of larger production ag equipment continue their negative trend of the past year.
“Overall with half of the year behind us, I would say we continue to see this as a challenging year.”
About the Report/View the Full Report
Data from AEM’s Ag Tractor and Combine Report is provided monthly and is derived from AEM member companies through our proprietary statistical reporting programs. The analysis of the data is provided by AEM’s Market Intelligence department. Visit www.aem.org/agreports to view the reports, as well as reports from Russia and Canada.
About the Association of Equipment Manufacturers (AEM) - AEM is the North American-based international trade group providing innovative business development resources to advance the off-road equipment manufacturing industry in the global marketplace. AEM membership comprises more than 900 companies and more than 200 product lines in the agriculture, construction, forestry, mining and utility sectors worldwide. AEM is headquartered in Milwaukee, Wisconsin, with offices in the world capitals of Washington, D.C.; Ottawa, Canada; and Beijing, China. www.aem.org.