More of the Same for U.S. Tractor & Combine Sales: AEM Report

The latest U.S. Ag Tractor and Combine Report, with November numbers, from the Association of Equipment Manufacturers (AEM) shows little change in year-to-date growth from last month’s YTD totals, with under 40HP tractors the only category in positive territory. AEM is the leading trade group for off-road equipment manufacturers and suppliers.

November U.S. retail sales of farm tractors under 40HP were up 22.6 percent compared to last year, with year-to-date gains of 11.7 percent. U.S. retail sales for 2WD tractors of 40-100HP declined 5.0 percent in November and were down 4.2 percent year-to-date.

Sales of 2WD 100+HP tractors in the U.S. declined 27.1 percent for November year-over-year, with year-to-date sales down 22.7 percent, while 4WD tractors dropped 4.2 percent year-over-year and were down 23.3 percent year-to-date.

Combine sales declined 30.0 percent for November year-over-year with year-to-date sales down 25.7 percent.

“The smaller tractors under 40 HP are tracking well above their 5-year average, and while tractors 40-100HP have underperformed compared to the previous year, these still straddle their respective 5-year average, indicating continued demand for small and mid-size farm tractors,” said AEM Senior Vice President Charlie O’Brien.

“Less than 100HP demand is linked to the livestock segment, hobby farmers and housing. The relatively strong incomes in the livestock sub-segment that helped support the demand are expected to become subdued over the next year.

“The larger, production ag tractor sales (>100HP 2WD and 4WD) continue to show negative trends. With no improvement in crop receipts forecasted for 2016 compared to 2015, and subdued commodity prices, the USDA expects the current downturn to continue into 2017.”

Source: Association of Equipment Manufacturers news release