August 2019 saw increases in U.S. sales of self-propelled combines and 4WD tractors as well as total U.S. 2WD tractor sales compared to August of last year, according to the latest data from the Assn. of Equipment Manufacturers (AEM).
The downturn that we are experiencing today is certainly as dramatic as those early ones, but today farmers are not encumbered with massive debt and the current interest rates are very reasonable for those who have debts to service. This certainly is not a pleasant experience for anyone in the industry, but there is much more optimism than in previous downturns.
July 2019 saw decreases in U.S. sales of combines and 4WD tractors as well as total U.S. 2WD tractor sales compared to July 2018, according to the latest data from the Assn. of Equipment Manufacturers (AEM).
While the majority of producers are still buying their equipment outright, there continues to be a number of farmers who have been nudged toward lease contracts in order to conserve capital and still have new, dependable equipment with which to farm their land.
Ag Equipment Intelligence’s June 2019 Dealer Sentiments Report showed declining optimism in the Canadian market, including flat sales and rising new equipment prices. Dealers said that steel surcharges and volatile weather patterns were contributing factors of economic downturn.
North American ag equipment sales were up 1% year-over-year in May following 17% growth in April and flat growth in March. U.S. sales increased were up 5% year-over-year (combines down 13%, 4WD tractors up 2%, row crop tractors up 9%).
Following AEM’s release of the May 2019 North American retail tractor and combine sales, John Deere announced its retail sales as they compared with the rest of the industry. Overall, Deere’s numbers were mixed vs. the rest of the ag industry.
As the trade wars continue to wage in U.S., farm equipment sales numbers mirror the uncertainty within the industry. U.S. sales saw minimal growth in most categories while Canada dropped in all but two, according to the latest AEM sales data.
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