Under-40HP farm tractor and combine sales increase

Apr 14, 2016

Bolster overall market growth

By Farms.com Media

Sales of 2WD and 4WD farm tractors and combines continue to track higher than last year and also the five-year average, according to the Association of Equipment Manufacturers.

Strong under-40HP tractor sales are offsetting significant declines in larger production equipment.

According to the AEM, “U.S. retail sales of farm tractors under 40HP were up 33.2 per cent for March 2016 and up 26.1 per cent year-to-date, compared to the same periods last year.

Kubota tractor

“Retail sales for 2WD tractors of 40 to 100HP increased 10.1 per cent in March compared to last year, bringing year-to-date growth to a positive 3.2 per cent.”

The AEM report indicated first-quarter 2016 sales of 2WD tractors over 100HP declined 32.9 per cent, and January-March 2016 sales of 4WD tractors dropped 38.2 per cent, compared to first-quarter 2015. Combine sales were down 14.7 per cent for first-quarter 2016 compared to last year.

“Sales of the compact utility tractors have continued to benefit from their broader customer base used in small acreage farms in addition to some livestock applications,” said Charlie O’Brien, AEM senior vice president.

“While some segments may show signs of leveling off or stabilizing, sales of the larger production equipment are still showing significant downward trends from last year; the marketplace is still experiencing the effects of persistent lower commodity prices and higher used-equipment inventories,” said O’Brien.

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