Tractor Sales Take First Negative Turn This Year

MILWAUKEE, WI – A slowdown in the sales of small utility tractors is pulling overall total farm tractor sales into negative territory for the first time in a year.

According to data released by the Association of Equipment Manufacturers (AEM), total farm tractor sales in the United States fell almost 4 percent in May compared to the same month in 2020.

On the other hand, producers seem to be preparing for a bountiful harvest because combine sales increased more than 33 percent year-over-year.

Small utility tractors have been in high demand since the onslaught of the coronavirus pandemic, apparently as landowners found more time to devote to tasks that required less than 40 horsepower. This class of tractors actually fell almost 9 percent, while all other classes of tractors increased in May over the same time last year.

The largest gains came from the articulated four-wheel drive segment which experienced amazing growth for the month as dealers sold 253 units – equal to a 62 percent increase in demand. Two-wheel drive tractors with more than 100 horsepower also experienced growth in May with an increase of 29 percent, while the mid-size class of tractors (40 to 100 horsepower) gained 7 percentage points.

For the year-to-date, farm tractor sales still remain 26 percent greater than the same time period in 2020, and demand for new combines has grown by 13 percent.
(SOURCE: All Ag News)