Combine harvest sales show double-digit gains in October in the United States according to the Association of Equipment Manufacturers (AEM).
Total agricultural equipment sales remain up over the five-year average in October. While sales in nearly all tractor segments saw increases compared to last year, the sub-40 hp segment is down yet again.
“With all the new technology available, we’re happy to see farmers being able to take advantage of the technology on modern harvesters and tractors,” says Curt Blades, Senior Vice President, Industry Sectors and Product Leadership for AEM. “The drop in the U.S. sub-40 hp segment continues the trend we’ve been expecting given the significant growth in that segment driven by consumer spending changes during the pandemic. Despite the year-over-year reduction in sales, the small tractor sales remain above the five-year average.”
Tractor sales for October 2022 are broken down by horsepower range as follows:
Sales for 2WD sub-40 hp tractors were down 23.6% from 2021. Year to date, AEM reports 154,941 tractors have been sold in this category, down from 189,298 at the same time last year.
Sales for 2WD 40-100 hp tractors in October 2022 were up 3.2% versus 2021. Year-to-date sales, however, were down 10.6% compared with the same time last year.
In a positive direction, sales for 2WD 100+ hp tractors continue to grow from last month, up 25.2%. Year-to-date, AEM reports sales in this category were up 13.9% over the same time last year.
Sales for 4WD tractors are up 9.4% compared with the same month last year. Year-to-date, AEM reports this category is down 6.7% versus the same time last year.
Sales for self-propelled combines saw growth in October, up by 77.4%. Year-to-date, AEM reports sales are up 16.2% compared with the same time last year.
EDTIOR’S TAKE:
Farmers and ranchers are purchasing everything they can get their hands on that will benefit their operation and lower their tax bill. Just like the auto/truck sector, ag equipment manufacturers have had a challenging couple of years with supply chain disruptions coupled with difficult labor contract negotiations. Only now are they beginning to build a little inventory. As that inventory becomes available, farmers/ranchers are snapping it up.
This is a not-so-subtle reminder that smaller horsepower tractor sales are heavily influenced by the overall economy and stock market. It also demonstrates that farmers/ranchers have money and are willing to spend it.
Our research suggests they will buy over a million trucks in the next year. If you want to get in on the action, why not target this well qualified group of buyers by putting your inventory on AgTruckTrader.com. This is a website that specifically targets farmers/ranchers and will have a national ad campaign behind it starting December 1st!
