Year-over-year sales for combines, 4WD tractors and 100+ hp 2WD tractors closed out 2023 with gains compared with 2022. All other market segments declined in 2023, according to sales numbers from the Association of Equipment Manufacturers (AEM).
“Seeing year-over-year gains in U.S. sales of both combine harvesters and 100+hp tractors is a welcome sight as 2024 gets underway,” says Curt Blades, Vice President of AEM. “While several tractor segments fell versus 2022, we’re still confident in the strength of the equipment market and remain optimistic about its long-term growth.”
Supply has been mounting for the better part of 2023 for row crop tractors and combines, putting a strain on dealerships’ interest expenses, says Andy Campbell, Director of Insights at Tractor Zoom.
Tractor sales
Total farm tractor sales for December 2023 were down 5.1% compared to December 2022. Tractor sales are broken down by horsepower range as follows:
Sales for 2WD sub-40 hp tractors in December were down 5.8%.
Sales for 2WD 40-100 hp tractors in December were down 7.7%.
Sales for 2WD 100+ hp tractors in December were up 3.6% compared to last year. Year to date, AEM reports tractors sold in this category were up 5.2% from the end of 2022.
Sales of 4WD tractors were down 5% in December, but up 31.7% from 2022.
Combine sales
Sales for self-propelled combines were down 16.4% in December 2023. Year to date, AEM reports combines sold year-to-date, up 1.7% from the end of 2022.
EDITOR’S TAKE:
Sales appear to have been slower during the month of December, but show remarkable strength for the year-to-date numbers for the categories most often purchased by farmers/ranchers (i.e., 2WD tractors of 100+ hp, 4WD tractors and combines). There is no doubt that farmers/ranchers are spending time with their tax accountants to calculate their approach to 2024. But keep in mind, 2023 was a very good year for net farm income overall. Most farmers/ranchers will still be flush with cash to spend on those items that will enhance their operation in 2024 and lower their tax burden. Trucks will certainly be on their radar screen. Be sure to put your inventory on that radar screen by using AgTruckTrader.com. Plus, always remember how simple it is to train your sales people to ask that all important question – “Are you a farmer or rancher?” This sets the stage for promoting AgPack® with up to $32,000 in exclusive rebates and discounts on top of your best deal.
