Tractor, Combine Sales Near Average

The U.S. ag machinery sales year is about to wrap. It has been a strong sales year for 100-plus-horsepower, two-wheel-drive tractors and four-wheel-drive tractors. Combine sales soared way above the five-year trend line for much of the year before slowing at the end of 2023.

But overall, looking at the five-year sales trend for tractors and combines, 2023 has been right on trend -- right on, or slightly below, the five-year monthly average. These numbers come from the monthly U.S. Tractor and Combine reports published by the Association of Equipment Manufacturers (AEM).

Good news can be found in November 2023 sales of four-wheel-drive tractors. Sales in November compared to November 2022 were up 72.6% for the big tractors (119 more tractors sold). Year to date, January-November 2023, manufacturers have sold 4,072 four-wheel-drive units. That's up 38.2% over the same 11 months in 2022, or 1,125 actual tractors.

Two-wheel-drive, 100-horsepower tractors have been steady performers for most of the year -- the exception being the last few months. Two-wheel-drive tractor sales were nearly even in November, down just 0.1% compared to November 2022. For the year, two-wheel-drive, 100-plus-horsepower tractor sales remained up 5.3% -- 24,888 sold in the first 11 months of this year compared to 23,629 sold during the same months last year.

The greatest drag on tractor sales in 2023 were the small tractors, those less than 40 horsepower (down 11% January-November 2023, compared to the same period in 2022) and 40 to 100 horsepower (down 9.2% in 2023 versus 2022). Because of the large size of the small-tractors market, the sales decline measured by the numbers is eye-opening. Sales of 40-horsepower and below tractors are off by 18,000 units compared to the same months in 2022. It's a similar story for 40- to 100-horsepower tractors. Sales of these tractors, January-November this year, are down more than 5,600 tractors compared to the same 11 months in 2022.

Combine sales were on fire early this year. In February, for example, combine sales were up 165% over February 2022. The reverse is the case at the close of 2023, according to AEM. Unit combine sales for November 2023 (compared to November 2022) were down 11.3%, or 35 actual combines. For this year, month-to-date, combine sales remain positive, up 3.7% over the same 11-month time frame in 2022. By actual number, U.S. manufacturers have moved 6,760 combines January-November 2023 compared to 6,518 sold last year over the same months.

"November is historically a slow month for tractor and combine sales," said Curt Blades, senior vice president, industry sectors and product leadership at the Association of Equipment Manufacturers. "We are happy to see the year-to-date sales strength in the larger equipment market and remain optimistic for the long-term."

Dan Miller can be reached at dan.miller@dtn.com

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