UNDER 40HP TRACTORS STILL THE BRIGHT SPOT IN U.S. AG TRACTOR AND COMBINE SALES
It was more of the same in May for U.S. retail sales of ag tractors and combines, with under 40HP tractors leading the way and sales of larger tractors and combines continuing to lag, according to data from the Association of Equipment Manufacturers (AEM), the leading trade organization for off-road equipment manufacturers and suppliers.
U.S retail sales of farm tractors under 40HP were up 9.4 percent in May 2016 compared to the same time period last year, and up 15.5 percent January through May. For 2WD tractors 40-100HP, sales were up slightly for May compared to last year – plus 1.4 percent, and year-to-date are tracking at minus 2.1 percent.
May sales of 2WD 100+HP tractors in the U.S. declined 3.5 percent, with year-to-date sales down 24.3 percent, while 4WD tractors dropped 26.1 percent year-over-year and dipped 30.6 percent year-to-date.
Combine sales declined 40.2 percent year-over-year for May but for January through May dropped 28.8 percent compared to 2015 year-to-date sales.
“The May retail sales numbers, taken together, are higher than the 5-year average, mostly driven by the smaller under 40HP machines, which remain an area of growth compared to the negative numbers for production equipment. However, farm tractors 40-100HP continued their stable trend, and the 2WD tractors 100+HP experienced a lower decline than earlier this year,” said Charlie O’Brien, AEM senior vice president.
“Farm incomes are expected to be more stable this year and we are seeing some growth in crop receipts in certain areas of the country, but we will most likely have to wait until later this year or 2017 to see an appreciable impact on equipment sales.”
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) - www.aem.org 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 850 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.
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