MILWAUKEE — It was more of the same in May for U.S. retail sales of ag tractors and combines, with under 40 horsepower tractors leading the way and sales of larger tractors and combines continuing to lag, according to data from the Assn. of Equipment Manufacturers (AEM), the leading trade organization for off-road equipment manufacturers and suppliers.
U.S retail sales of farm tractors under 40 horsepower were up 9.4% in May 2016 compared to the same time period last year, and up 15.5% January through May. For 2WD tractors 40-100 horsepower, sales were up slightly for May compared to last year — plus 1.4%, and year-to-date are tracking at minus 2.1%. (View more details in the chart below.)
May sales of 2WD 100+ horsepower tractors in the U.S. declined 3.5%, with year-to-date sales down 24.3%, while 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 28.8% compared to 2015 year-to-date sales.
“The May retail sales numbers, taken together, are higher than the 5-year average, mostly driven by the smaller under 40 horsepower machines, which remain an area of growth compared to the negative numbers for production equipment. However, farm tractors 40-100 horsepower continued their stable trend, and the 2WD tractors 100+ horsepower experienced a lower decline than earlier this year,” says Charlie O’Brien, AEM senior vice president.
“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 an appreciable impact on equipment sales.”
About the Report/View the Full Report
Data from AEM’s Ag Tractor and Combine Report is provided monthly and is derived from AEM member companies through our proprietary statistical reporting programs. The analysis of the data is provided by AEM’s Market Intelligence department. Visit www.aem.org/agreports to view the reports, as well as reports from Russia and Canada.
About the Assn. of Equipment Manufacturers
AEM is the North American-based international trade group providing innovative business development resources to advance the off-road equipment manufacturing industry in the global marketplace. AEM membership comprises more than 850 companies and more than 200 product lines in the agriculture, construction, forestry, mining and utility sectors worldwide. AEM is headquartered in Milwaukee, with offices in the world capitals of Washington, D.C.; Ottawa, Canada; and Beijing, China.