Industry unit sales for agricultural equipment in North America hit their highest sales month since 2008, according to a recent Association of Equipment Manufacturers survey. Tractor sales for 100-hp. units were up 43% year over year in September, following an increase of 45% year over year in August.
Combine sales were up 13% year over year in September, vs. up 18% in August. September combine strength follows a particularly strong August, and both months represent sales months higher than the 2008 peak in equipment sales.
As a result, September 2010 equipment industry dollar revenues were up 17% year over year, according to JP Morgan analyst Ann Duignan. This creates an upside into year-end on the back of strong cash receipts and pre-buying of agricultural equipment, she says.
"We are forecasting robust sales into year-end," Duignan says. "Looking ahead, we are expecting a modest pre-buy in 2010, ahead of the 2011 emission standard changes."
Hear more insight from Duignan at the 2011 Top Producer Seminar in Chicago. Visit www.topproducerseminar.com for agenda and registration information.