Tractor and Combine Sales Decline – Why it Matters to You

For the first time since March 2020, U.S. tractor and combine sales fell below the five-year average last month, according to the Association of Equipment Manufacturers (AEM).

U.S. total farm tractor sales fell 14.5% in May compared to 2021. Self-propelled combine sales also dropped 12.7%. For the third month in a row, the only sector that grew was the 100+ horsepower 2WD segment, which was up 13.9%. Mid-range tractors between 40 and 100 hp fell 16.4%, and the sub-40 hp segment was down 15.9%. 4WD tractors were down 30.4%. Both farm tractor and combine total sales were down 14.2% year-to-date.

“Supply chain remains the primary issue in the ag equipment market right now,” says Curt Blades, Senior Vice President, Industry Sectors & Product Leadership at AEM. “Another thing to keep in mind, especially when comparing numbers year-over-year, is 2021 sales were significantly above historic trends.”

Editor’s Take:

Mr. Blades is exactly right – it’s difficult to sell something you don’t have. Car and truck dealers know that firsthand. If a major combine producer is using steel from Russia and now is cut off from that supply, the plant shuts down. As we have pointed out on several prior occasions, farmers do have money despite rising input costs. They want to purchase equipment, but can’t. They often can’t get parts for their machinery either. However, they still need and want trucks! And that is where you come in. As the supply-demand balance shifts due to high inflation and consumers tightening their belts, look to farmers as great prospective customers. You can help them fight that inflation with the amazing exclusive rebates and discounts totaling nearly $30,000 – with AgPack. Break it down and spell it out for the farmers and ranchers in your area. Let them know about your amazing service, parts and new or used inventory that qualifies for AgPack. Be sure to spell out each and every AgPack partner offer. They will be amazed!