The Association of Equipment Manufacturers (AEM), a major trade organization for off-road equipment manufacturers and suppliers, released its monthly report describing retail sales for agricultural tractors and combines. The results show that sales have remained the same over the month of May, with 40-HP tractors leading the way, and sales of larger tractors and combines continuing to lag.
U.S retail sales of farm tractors under 40 HP were up 9.4% in May 2016 compared to the same time period last year, and up 15.5% January through May. For 2-wheel drive (2WD) tractors 40-100 HP, sales were up slightly for May compared to last year – plus 1.4%, and year-to-date are tracking at minus 2.1%.
Meanwhile, May sales of 2WD 100+HP tractors in the U.S. declined by 3.5%, with year-to-date sales down 24.3%. And 4WD tractors dropped 26.1% year-over-year and dipped 30.6% year-to-date.
Combine sales declined 40.2% year-over-year for May but for January through May dropped only 28.8% compared to 2015 year-to-date sales.
“Farm incomes are expected to be more stable this year and we are seeing some growth in crop receipts in certain areas of the country, but we will most likely have to wait until later this year or 2017 to see [if there is] an appreciable impact on equipment sales,” says Charlie O’Brien, AEM senior vice president.
Data from AEM’s Ag Tractor and Combine Report is provided monthly and is derived from AEM member companies through proprietary statistical reporting programs. Data is analyzed by AEM’s Market Intelligence department. Visit www.aem.org/agreports to view the reports, as well as reports from Russia and Canada.