Source: AEM Flash Data

According to R.W. Baird, U.S. and Canada large ag equipment declines continue, with four wheel drive tractor sales down 42.3% year/year (down 23.7% last month), combine sales down 33.3% (down 47.7% last month), and row crop tractors down 16.6% (down 19.3% last month). Mid-range tractor sales increased 7.5% year/year following a 5.1% decrease in the prior month, while compact tractor sales surged 17.1% year/year.

Mid-range tractor sales increased in April, up 7.5% year/yearafter a 5.1% decrease last month. Compact tractor sales increased 17.1% year/year, up from the 3.7% decrease last month.

U.S. and Canada large tractor and combine retail sales decreased 23% year/year in April, improving slightly from the 25% decrease in March. U.S. sales decreased 27% year/year; Canadian sales were flat.

Combine retail sales fell, posting a 33.3% year/year decrease inApril following a 47.7% decrease in March. Last-three-month sales declined 36.7% on a year/year basis following a 44.3% last three-month decrease last month.

U.S. combine inventories were 21.5% lower year/year in absolute terms in March (vs. down 18% last month); days-sales (71) was up from last year (62). April is typically a below-average month for combine sales, accounting for 7.0% of annual sales over the last five years.

Row crop tractor sales posted a 16.6% year/year decline, improvingslightly from the 19.3% decrease observed in March; last-three-month sales decreased 18.2%.

U.S. row crop tractor inventories increased 1.8% year/year in March vs. a 6.6% increase in February. On a days-sales basis, inventories were higher year/year at 134 days-sales (versus 110 days-sales in March 2014). April is typically an above-average month for row crop tractor sales, accounting for 9.8% of annual sales over the last 5 years.

Four wheel drive tractor sales declined 42.3% year/year in April vs. a 23.7% decrease in March.

U.S. dealer inventories of four wheel drive tractors decreased 39.7% year/year in March, while days-sales of inventory was 79, down from 86 in March of last year.