The Difference Between U.S. and Canada Tractor Sales

March 16, 2016 11:18 AM

The Association of Equipment Manufacturers has released its February 2016 sales reports for the U.S. and Canada. For the U.S., sales numbers were once again a mixed bag.

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The news wasn’t all bad. While combine sales are down 50.3% from a year ago and 4WD tractor sales are down 43.6%, total 2WD tractor sales are up 7.8% from last February.

In Canada, the sales trends are somewhat inversed. Combine sales are actually up 6.8%, with 4WD tractor sales down slightly at 4.5% and 2WD farm tractors taking the biggest hit with a 22.7% sales decline compared to last February.

The Canadian farm economy could partly explain the shift in equipment sales. Canada’s government has estimated net cash income for their farmers could fall 9% from the country’s record $15 billion in 2015. This would still be higher than the 15-year average, however.

Also, some – including Greg “Machinery Pete” Peterson – have speculated that U.S. farmers hunting for equipment bargains will head north due to the current tilt between U.S. and Canadian currency.

“If you’re buying a $100,000 or $200,000 item, it’s a good thing to look north,” he says.

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