The Association of Equipment Manufacturers (AEM) reports that U.S. sales of tractors and combines is tracking ahead of the 5-year average. As 2016 hits the mid-year mark small tractors under 40 horsepower continue to lead the way, up 3 percent over last year. Combine sales were also up in June, with 8 percent growth, although still down from last year.
“We have passed the midyear mark for 2016 and overall, tractor sales continue to show downward trends in the larger horsepower categories but when combined with the unit sales of smaller hp tractors, total tractor sales are tracking above the 5-year average,” said Charlie O’Brien, AEM senior vice president.
“While there have been monthly year-over-year fluctuations, currently the positive end of the market is still geared toward smaller equipment sales, which are tied to hobby farmers, landscaping (housing) and livestock. The larger production ag machinery continues to experience double-digit declines.
“Looking later into 2016 and going into 2017, it is important to consider the 2016 farm income forecasts, where the USDA foresees lower livestock receipts and higher crop receipts.”
You can view the full report here.