According to the Association of Equipment Manufacturers (AEM), it was “more of the same” when it came to May 2016 retail sales of agriculture tractors and combines. Positive news continues to lead the way for under-40HP tractors, while larger tractor and combine sales continue to struggle.
“The May retail sales numbers, taken together, are higher than the 5-year average, mostly driven by the smaller under 40HP machines, which remain an area of growth compared to the negative numbers for production equipment,” according to Charlie O’Brien, AEM senior vice president. “However, farm tractors 40-100HP continued their stable trend, and the 2WD tractors 100 HP experienced a lower decline than earlier this year.”
AgDay has more:
U.S. retail sales of under-40 HP farm tractors were up 9.4% compared to May 2015. 2WD tractors from 40 to 100 HP were up 1.4% compared to May 2015. Combine sales continue a big decline from last year, with 40.2% lower sales compared to May 2015. Year-to-date, total farm tractor sales tallied a 4.8% gain from 2015.
O’Brien says farm incomes are expected to stabilize in 2016 but adds that farm equipment manufacturers will need to remain patient through the near future.
“We will most likely have to wait until later this year or 2017 to see an appreciable impact on equipment sales,” he says.
Visit www.aem.org/agreports for the full report.