AEM: NOVEMBER U.S. SALES OF TRACTORS UNDER 40 HORSEPOWER UP 22.6%
Dec. 19, 2016
Source: Association of Equipment Manufacturers
Milwaukee, Wisconsin - The latest U.S. Ag Tractor and Combine Report, with November numbers, from the Assn. of Equipment Manufacturers (AEM) shows little change in year-to-date growth from last month's YTD totals, with under 40 horsepower 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 40 horsepower were up 22.6% compared to last year, with year-to-date gains of 11.7%. U.S. retail sales for 2WD tractors of 40-100 horsepower declined 5.0% in November and were down 4.2% year-to-date.
Sales of 2WD 100+ horsepower tractors in the U.S. declined 27.1% for November year-over-year, with year-to-date sales down 22.7%, while 4WD tractors dropped 4.2% year-over-year and were down 23.3% year-to-date.
Combine sales declined 30.0% for November year-over-year with year-to-date sales down 25.7%.
"The smaller tractors under 40 horsepower are tracking well above their 5-year average, and while tractors 40-100 horsepower 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," says AEM Senior Vice President Charlie O'Brien. "Less than 100 horsepower 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 (>100 horsepower 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."
About the 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.