POSITIVE AG EQUIPMENT SALES TREND CONTINUES IN AUGUST
Sep. 14, 2020
Source: Assn of Equipment Manufacturers (AEM) news release
Milwaukee, Wisconsin -- Unit sales of agricultural tractors and self-propelled combines in August 2020 were positive for the fifth month in a row in the U.S., and stayed above the previous year for the third consecutive month in Canada according to the latest data from the Association of Equipment Manufacturers (AEM).
U.S. total farm tractor sales rose 12.8 percent in August compared to 2019 while U.S. self-propelled combine sales grew 1 percent. Four-wheel-drive units grew for the first time in the U.S. in August, climbing 14.1 percent to 218 units, shrinking the year-to-date decline to 9.7 percent. 100+hp units remain the only slow spot in the market, with 7.8 percent fewer of them finding new owners in August. Total YTD farm tractors out the door are up 14 percent in 2020, while combines are now up 3.6 percent on the year.
For Canada, August tractor sales grew across the smaller-unit segments, leading to an overall gain in tractor sales of 22 percent. That grows the YTD unit sales gain for farm tractors to 6.9 percent, while combines monthly sales growth of 35.8 percent cut total YTD losses nearly in half to 11.5 percent.
"We're not surprised with seeing growth in combines pick up, with USDA predictions of larger harvest sizes for this year," said Curt Blades, senior vice president of Ag Services at the Association of Equipment Manufacturers.
"We're still watching the 100-horse and four wheel drive sales closely, as those are the units that indicate how the large-field farmers are feeling, especially as they start planning for winter and cover crops, and next year's plantings. However, this month's overall equipment sales remain above the 5-year average, and we're pleased with that."
The full reports can be found in the Market Data section of the AEM website under Ag Tractor and Combine Reports.
AEM is the North America-based international trade group representing off-road equipment manufacturers and suppliers with more than 1,000 companies and more than 200 product lines in the agriculture and construction-related industry sectors worldwide. The equipment manufacturing industry in the United States supports 2.8 million jobs and contributes roughly $288 billion to the economy every year.
AEM continues to lead the industry's response to the COVID-19 pandemic, and is working closely with state and federal officials to help keep equipment manufacturing in America strong and ensure the nation's economic resilience. AEM has also called for bold action from Congress and federal agencies, including continued federal designation deeming equipment manufacturers and their employees, suppliers, and distributors as "essential" and additional support to ensure small and medium-sized equipment manufacturers have access to the cash they need to keep operations going.