The sub-40hp tractor segment led segment losses in August again, down 16%, according to the latest data from the Assn. of Equipment Manufacturers (AEM).

Inflation in the U.S. general economy is now above 9% and that has caused many consumers to curtail much of their discretionary spending as they purchase the essentials for daily living.100+ horsepower tractors retail sales exceeded our monthly forecast but were only 3.5% above our year to date forecast.

According to the Association of Equipment Manufacturers, sub-40 horsepower tractor U.S. sales stayed moderately positive, growing 0.4% in September. In Canada, sales the sub-40 horsepower segment saw unit sales grown 13.5% in the month.

Times are tough for producers, and dealers need a silver lining. Between the chaos caused by late planting, followed by the cloud of uncertainty created by the trade disputes with China, equipment dealers’ sentiment came in lower in this year’s Ag Equipment Intelligence 2020 Business Outlook & Trends Farm Equipment Forecast.

U.S. sales of tractors under 40 horsepower were down 2.6% in June compared with June of 2018 and sales of tractors 40-100 horsepower were down 4.8%, according to the Assn. of Equipment Manufacturers.