Retail sales of tractors under 40 HP and 40-100 HP went up in August, according to the Association of Equipment Manufacturers (AEM) survey.
“Growth in the under 40HP tractor segment was strong for August and farm tractors in the 40-100 HP range once again reversed their monthly trend,” said Charlie O’Brien, AEM senior vice president. “When combined, these two segments outperformed their 5-year average (2011-2015), mainly driven by the smaller equipment, however.”
The sales of larger tractors and combines continued to decrease.
“The numbers for mid-size equipment, specifically that related to livestock, are not unexpected. In our quarterly North American agricultural equipment industry conditions survey for Q2 2016, falling livestock prices were associated with falling equipment demand,” O’Brien said.
U.S. retail sales for 2WD tractors under 40HP gained 21.2 percent in August compared to a 6.3 percent decline from July, according to the survey.
Sales of 2WD tractors from 40-100 HP went down, falling 7 percent in August. But that’s an improvement from a 23.3 percent decline in July.
Large tractors and combines monthly sales did not vary too much from July, according to AEM.
“The 100+HP 2WD tractors and 4WD tractors combined are underperforming their 5-year average,” said O’Brien.
Sales of 2WD 100+ HP tractors in the U.S. dropped 27 percent for August, and year-to-date sales went down 24.2 percent.
In August, 4WD tractor sales declined 48.1 percent year-over-year and were down 33.7 percent for August year-to-date.
Combine sales fell by 22.4 percent in August and a 22.1 percent drop for year-to-date.
“Earlier in the year, we felt that the market was stabilizing, but as we pass the midpoint of 2016, we continue to see the smaller equipment is thriving overall while the larger production ag equipment remains depressed,” O’Brien said.