Canadian farm equipment sales to slow in 2024

Dec 28, 2023

New farm equipment sales are projected to be softer into 2024, as higher interest rates, elevated equipment prices and a decline in commodity prices impact purchasing decisions. However, the farm equipment fleet is showing signs of aging. This is a trend to monitor in 2024 and beyond as dealers may see increased demand for service and parts.

New farm equipment sale projections
New farm equipment unit sales are projected to record mixed performance for the remainder of 2023 and 2024 (Table 1). Strong sales in 2023 reflect the resolution of supply chain issues and record-high crop receipts in 2022 and the first half of 2023. 100+ horsepower and lower tractors are expected to have unit sales decline in 2024 as purchasing decisions reflect a more cautious environment due to challenges in the livestock sector due to the drought in western Canada and tighter revenues for hog and dairy sectors in eastern Canada. The slowing Canadian economy will also reduce demand for lower horsepower tractors. Canadian implement manufacturing dollar sales are expected to finish higher in 2023 due to price inflation on raw materials used in manufacturing. Both 4WD tractors and implement manufacturers (e.g., air drills) faced delivery issues and low inventory levels throughout 2023, which are driving part of the increase in our 2024 projections.

Equipment inventory levels have improved – 4WD tractors remain low
Inventory levels of new equipment rebounded in 2023 and are now in line with the 5-year average for most categories as sales slowed and manufacturers caught up on deliveries. However, 4WD tractor inventories are expected to remain low (Figure 1).

As new equipment sales slow, inventory levels will continue to increase, returning closer to pre-pandemic levels as manufacturers build new units. Manufacturers are unlikely to adjust production levels in the short term. Rising inventory levels of new equipment will spill over to the used equipment market.

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Video: A Farm Song (Busy) | Parody of A Bar Song (Tipsy) by Shaboozey

Lyrics:

My days begin with workin’, Alarm’s at 5 o’clock,
I Fill 5 gallon buckets, The feeders and the troughs,
This five to nine ain’t workin’, why the heck do I work so hard?,
I can’t worry ‘bout health problems, I can sleep in when I’m gone,

One, here comes the two to the three to the four,
Tell em’ ‘buy another cow, we need plenty more’,
Blue jeans are gettin’ dirty, what else could I ask for,
Oh my, more chores

Someone pour me up another shot of sweet tea,
They know me and working hard’s got a history,
There’s another flock of sheep that still needs feed,
Everybody on the farm gettin’ busy,

Everybody on the farm gettin’ busy,
Everybody on the farm gettin’ busy,

I’ve been working pretty stressed but,
I ain’t changing for some cash,
Lord knows that I’m very blessed (More chores),
But I gotta say it’s hard,
Workin’ outside gettin’ charred,
Living out here on the farm, (more chores)

One, here comes the two to the three to the four,
Tell em’ ‘buy another cow, we need plenty more’,
Blue jeans are gettin’ dirty, what else could I ask for,
Oh my, more chores

Someone pour me up another shot of sweet tea,
They know me and working hard’s got a history
There’s another 20 chickens that still need feed,
Everybody on the farm gettin’ busy,

Everybody on the farm getting’ busy,
Everybody on the farm gettin’ busy,

Fun, here on ranch that’s what you can’t ignore,
Might be pretty hard but I love it to its core,
Flannel’s gettin’ dirty, what else could I ask for,
Oh my, more chores (Tell ‘em sing with me)

Someone pour me up another shot of sweet tea,
They know me and working hard’s got a history,
There’s another flock of sheep that still needs feed,
Everybody on the farm gettin’ busy,
Someone pour me up another shot of sweet tea,
They know me and working hard’s got a history,
Watching cattle in the dark, don’t miss me,
Everybody on the farm gettin’ busy,
(Yeeeeeehaw)
Everybody on the farm gettin’ busy,
Everybody on the farm gettin’ busy,
It’s the best bro, go get yourself a farm