This could be a difficult year for tractor and combine sales.
A new report from the Association of Equipment Manufacturers (AEM) reveals sales of two-wheel drive tractors between 40 and 100 horsepower were down 23.3 percent in July and 6.1 percent over the year.
Sales of two-wheel drive tractors over 100 horsepower are also down—24.9 percent in July and 24 percent year-to-date.
Four-wheel drive tractor sales are also down. Sales dropped 48.3 percent from last year.
Combine sales declined 16.2 percent in July and 22 percent year-to-date.
“For combines, the positive growth in sales last month compared to the same month last year was not sustainable, as we are back in negative territory. Sales of larger production ag equipment continue their negative trend of the past year,” Charlie O’Brien, AEM senior vice president, said.
There is some good news in the report. Sales of small farm tractors—those under 40 horsepower—are up 9.8 percent compared to last year. The sales of those tractors did slip slightly in July with a decline of 6.3 percent.
“For the under 40 HP tractors, this is the first time in 2016 that we have seen negative year-over-year comparison for the month. For 40-100 HP tractors, while 2016 year-over-year sales have fluctuated, the July decline appears to be significantly higher, and a drop this large has not been seen since October 2009,” O’Brien said.
The full report can be found at http://bit.ly/2b2JmKo.