North American Farm Tractor Sales Dip In June As Inventory DwindlesTue, 13 Jul 2021 08:18:41 CDT
Smaller tractors led declines in U.S. and Canada farm tractor unit sales while overall tractor inventories are down more than 40 percent year-over-year according to the latest data from the Association of Equipment Manufacturers (AEM).
U.S. total farm tractor sales fell 12.7 percent in June compared to 2020, the second overall negative result in a year, while U.S. self-propelled combine sales rose 4.1 percent. The sub-40hp segment led the decline, falling 18.4 percent, with a small decline in the mid-size 41-100 hp segment, down 3.1 percent. All other segments were positive, with articulated 4WD segment leading the way for the second straight month by more than doubling, up 141.8 percent to 266 units sold. The 100+hp 2WD segment also grew 24.8 percent. Year to date farm tractor sales remain up 16.7 percent and combines up 11 percent.
For Canada, June monthly tractor and combine sales were a mixed bag, declining in the sub-40hp and self-propelled combine segments, while growing everywhere else, with the biggest growth in 100+hp 2WD units, up 69.8 percent to 343 units sold, while total farm tractor sales were down slightly 3 percent to 3,217 units sold.
Available inventories may explain some of the changes in sales, as U.S. total farm tractor inventory (71,035) is 41.3 percent below levels in June 2020 (121,169), while Canadian inventory is down 33.2 percent over that same time (9,535 in 2021 vs 14,288 in 2020).
“The strength in the bigger row-crop units shows conditions in farm country remain positive, indicating a good-looking crop in the field and the promise of good commodity markets,” said Curt Blades, Senior Vice President of Ag Services at the Association of Equipment Manufacturers. “We remain hopeful that the trend toward more efficient, more intelligent technologies getting added on to these heavy-use pieces of equipment continues.”
The full reports can be found in the Market Data section of the AEM website under Ag Tractor and Combine Reports or by clicking here.
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