Tractor, Combine Sales Decline in June
June Tractor, Combine Sales Down From Same Month Last Year
Evidenced by layoffs at farm equipment manufacturers, there is no doubt sales of new tractors and combines have softened substantially, a new report from the Association of Equipment Manufacturers (AEM) confirms.
AEM's June 2024 Tractor and Combine report shows total tractor sales are off 16.1% compared to sales recorded in June 2023. Digging into that June number, AEM reports that 100-plus-horsepower (two-wheel-drive) tractor sales are down 13.9% in June compared to June 2023 and are down 4.2% for the year compared to the first six months of 2023.
Sales of four-wheel-drive tractors were off 1.3% in June, compared to June 2023. Sales of the big tractors remain narrowly positive for the year, up 2.7% compared to January through June 2023.
What has been true for many months was still true last month. Monthly sales of small tractors were off sharply again. Less-than-40-horsepower tractor sales were down 18.7% in June compared to June a year ago and are down 13.8% for the year compared to the same period last year. Sales of 40- to 100-horsepower tractors were down 10.4% last month, compared to June 2023 and are down 8.6% for the year compared to the first six months of 2023.
The result is no different for combines. Combine sales declined 31% in June compared to June 2023. For the first six months of this year compared to the first half of 2023, combine sales are down 17.3%
"June's sales of ag tractors and combines follow a May that also showed a slowdown in sales," said AEM Senior Vice President Curt Blades in a release from AEM. "This softness in the market follows a robust five years of sales. The challenges facing the subcompact tractor market illustrate why the passage of a strong farm bill is so needed to lift rural America and our farmers and growers."
In Canada, the sales picture is brighter. Sales of 4-wheel-drive tractors grew 10.6% in June compared to June 2023. Canadian sales of combines increased year to date, finishing the month up 13.6%.
Dan Miller can be reached at dan.miller@dtn.com
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