Four-Wheel-Drive Tractor Sales Seen Rising in 2009

November 17, 2008 06:00 PM
AgWeb Editors

U.S. tractor sales in 2009 are expected to be strongest for four-wheel-drive tractors with an anticipated increase of 4.4 percent, according to the Association of Equipment Manufacturers' "Industry Outlook” Survey.

The 100-horsepower-and-over two-wheel drive tractors are predicted to gain 3.3 percent while combines are forecasted to have a boost of 9.3 percent, AEM says. Machinery component sales, except for engines, are anticipated to increase. Sales of two-wheel-drive tractors for the 40-100 hp range remain level (down 0.1 percent) while the 2-wheel-drive tractors under 40 hp is predicted to decline 11.2 percent.

"Growth in these product sectors had been fueled by increased energy demands - in part being met by ethanol production - increased commodity prices and increased net farm income," AEM Vice President of Agricultural Services Charlie O'Brien says. "Net farm income is a driver of equipment sales, and producers' balance sheets overall are strong as a result of increases in net farm income, as well as increased asset accumulation and debt management. Farm debt-to-asset ratios are at an all-time low.”

Apart from tractors and combines, 2009 sales are predicted to be the strongest for planters with a 9.3 percent increase, and for self-propelled sprayers with a gain of 6.3 percent. Sales gains are also expected for windrowers/swathers, field cultivators, chisel plows, post hole diggers, forage harvesters and rotary cutters.

Regarding component sales in 2009, the electronic components segment is anticipated to increase 8.8 percent, hydraulic components are predicted to gain 7.8 percent and powertrains are predicted to increase 2.5 percent. Engine sales (air cooled/diesel) are predicted to be down 0.7 percent.

AEM Ag Industry Outlook – 2009 Retail Sales Predictions
                              (in units vs. 2008)

                                                &nb​sp;                        &nb​sp;           U.S.
     Type of  Equipment                           &​nbsp;              Percent

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