Mixed Results for U.S. Tractor and Combine Sales in June

The Association of Equipment Manufacturers (AEM) sales report for the month of June 2022 compared to the same month in 2021 shows overall tractor sales were down 8.3%. Four-wheel drive tractor sales down by 8.2% while combine sales trended up by 25.3%. Within the two-wheel drive category, the sale of 100+ HP tractors increased by 9.6%. This category was the only one that demonstrated an increase when comparing year-to-date figures between 2022 and 2021, up by 10.3%. Otherwise, on a YTD basis, all other categories show declines. Overall 2WD tractor sales dropped 13.4%; 4WD tractors were down 11.1%; and combines were down only 5.5% January through June.

Editor’s Take:

Here’s the deal – farmers are preparing for harvest by purchasing combines and 100+ HP tractors. Manufacturers, in an attempt to keep their heads above water, are focusing on production and sales of products needed in the next few months. Also, sales of under 40 HP tractors, the category showing the biggest decline, is primarily aimed at what we commonly call “LPOs” or Large Property Owners – those with 5, 10 or 20 acres or so. As such, sales in this category are highly correlated to the stock market. As has been noted many times in prior issues of the AIR, supply chain issues continue to plague equipment manufacturers and, thus, limit their ability to meet total demand. Farmer/rancher demand is constrained by availability and this month’s AEM results underscore this fact. If you, as a CAD member, have availability of trucks, now is a perfect time to put that inventory on AgTruckTrader.com. Farmers/ranchers still want new trucks and they have the ability to lease or purchase. Don’t wait, get started on AgTT today!