AEM June Tractor & Combine Report Shows Slower Sales

Year-to-date sales of tractors and combines show declines from the previous year in all categories except 4WD tractors, which were up a mere 2.7%. Sales of combines YTD were off by 17.3%. And for the month of June 2024 versus June 2023 the declines were even more pronounced and across the entire spectrum of categories. The under 40HP up to 100+ 2WD tractors reported a 16.3% drop, 4WD tractors declined by only 1.3%, however, combines were down 31% for the month. Compare that to the YTD figures respectively of -11.7 for 2WD, +2.7 for 4WD and -17.3 for combines.

EDITOR’S TAKE:

Not the best report we’ve seen this year. In fact, it’s probably the worst. One can partially dismiss the negative numbers based on stronger numbers for 4WD tractors and combines earlier this year. In other words, they have purchased what they wanted sooner this year. Also, farmers have stocked up on newer equipment for the past four or five years and can get by with what they have. But even those farmers/ranchers will cycle around in the next year or so. In addition, they are holding on to their grain until commodity prices improve a little and offer a better margin. That is the advantage of having on the farm storage. With all that said, sales are still occurring every day in 2024. The AEM report only shows tractors and combines. Farmers/ranchers are purchasing other equipment for hay, forage, planters, sprayers, tillage, etc. They will also be looking for trucks as well. All the more reason to make sure your inventory is listed on AgTruckTrader.com – the place they look first!