U.S. sales of tractors decreased 19% in September 2024 compared to the year before, according to new data from the Association of Equipment Manufacturers. Sales of combines also fell during the month, dropping 41% compared to 2023.
“September’s sales of Ag tractors and combines follows a summer that showed a cyclical slowdown in sales,” said AEM Senior Vice President Curt Blades. “These declines point to the overall softness in the ag economy.”
Canadian sales of Ag tractors also dropped in September 2024, finishing the month 24% behind 2023’s sales, while combine sales fell 52% compared to the year before.
With equipment sales lagging, manufacturers are once again having to make some difficult decisions regarding domestic production and workforces.
AGCO announced layoffs at its Hesston, Kansas, facility last week, while John Deere announced a 120,000 square foot expansion of one of its production facilities in Strafford, Missouri, where the company remanufactures parts and components.
John Deere was also on the receiving end of some presidential campaign rhetoric from former president and current Republican nominee Donald Trump. The ex-president threatened to slap Deere products imported into the U.S. with a 200% tariff due to the manufacturer shifting some of its production footprint to a facility in Mexico. Deere has said that facility manufactures tractor cabs and other components and has been in operation since the 1950s.
RELATED: Trump Threatens 200% Tariff If Deere Moves Manufacturing to Mexico
For its part, Case IH has launched the largest combine lineup in the farm equipment industry despite seeing its own sales drop 20% in Q2. Net profits were also down 19% compared to Q2 2023.
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