Combines and Large Tractors Selling Like Hotcakes

The Association of Equipment Manufacturers’ (AEM) August report of U.S. tractor and combine sales shows total tractor sales down by 14.5% year-to-date. Combine sales, on the other hand, are up 2.7% YTD and a whopping 25.8% from the comparable month last year. Dig further and the report reveals that 100+HP tractor sales are up 11.5% comparing August 2022 to the same month in 2021 and up 12% YTD. Sales of under 100HP tractors are off by double digits.

Editor’s Take:

Farmers/ranchers are buying ag equipment for harvest – combines and tractors to pull tender wagons in the field. The under 100HP market as we have explained previously is geared more to livestock operations, large property owners and those with a weekend or hobby operation. Other than the livestock operations, the other customers are less influenced by commodity markets, but more by stock markets. Overall, despite the market segment, the supply and parts availability is still holding back purchases. This report tells a very positive story about the agricultural customer – they are purchasing all they can of what they feel will enhance their operation. Farmers/ranchers are great customer prospects. Please, don’t overlook the value of your CAD membership and all it has to offer when appealing to the ag customer – they will be looking for trucks as well.