Retail sales of tractors under 40 horsepower and between 40-100 horsepower rebounded in August. However, sales of larger tractors and combines continued their double-digit declines in the newest data available from the Association of Equipment Manufacturers (AEM). U.S. retail sales for two-wheel drive tractors under 40 horsepower gained 21 percent in August, and are 11 percent higher on the year-to-date. August four-wheel drive tractor sales declined 48 percent year over year, and combine sales declined 22 percent for August. “Growth in the under-40 horsepower segment was strong during August and farm tractors in the 40-100 horsepower range reversed a lower recent monthly trend,” said Charlie O’Brien, AEM Senior Vice President. He said the over 100 horsepower two and four-wheel drive tractors are under-performing their five-year average. “Earlier in the year, we felt the market was stabilizing,” said O’Brien. “As we passed the middle of 2016, we continue to see smaller equipment sales thriving and the larger equipment sales remain depressed.”
From the National Association of Farm Broadcasting news service.
U.S. Smaller-Tractor Sales Rebound in August
AEM Manufacturer Trade Group Provides Commentary
U.S. retail sales of tractors under 40 HP and 40-100 HP rebounded in August, while sales of the larger tractors as well as combines continued their double-digit declines, 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 2 WD tractors under 40 HP gained 21.2 percent in August compared to a 6.3 percent decline in July, with year-to-date sales up 11.0 percent.
While August sales of 2 WD tractors 40-100 HP were down 0.7 percent, that compares to a 23.3 percent decline for July, improving the still-negative year-to-date numbers slightly to a minus 5.3 percent.
Monthly sales of the larger tractors and combines fluctuated a little from July, but the pace of year-to-date sales in August was virtually unchanged compared to July:
- Sales of 2 WD 100+HP tractors in the U.S. dropped 27.0 percent for August, with August year-to-date sales down 24.2 percent (down 24.0 percent July YTD)
- August 4 WD tractor sales declined 48.1 percent year-over-year and were down 33.7 percent for August year-to-date (down 33.6 percent July YTD)
- Combine sales declined 22.4 percent for August and recorded a 22.1 percent drop for August year-to-date (down 22.0 percent July YTD)
Charlie O’Brien, AEM senior vice president, provided some insights:
“Growth in the under 40HP tractor segment was strong for August and farm tractors in the 40-100 HP range once again reversed their monthly trend. When combined, these two segments outperformed their 5-year average (2011-2015), mainly driven by the smaller equipment, however.
“The numbers for mid-size equipment, specifically that related to livestock, are not unexpected; in our quarterly North American agricultural equipment industry conditions survey for Q2 2016, falling livestock prices were associated with falling equipment demand.
“The 100+HP 2 WD tractors and 4 WD tractors combined are under-performing their 5-year average.
“Earlier in the year we felt that the market was stabilizing, but as we pass the midpoint of 2016, we continue to see the smaller equipment is thriving overall while the larger production ag equipment remains depressed.”
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 900 companies, including 450 in the agriculture sector, 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.