With commodity prices struggling for broad acre crops, the first quarter of machinery sales in both Canada and the United States provide some insight.
In Canada (see table below) the first quarter for 2019 shows 2WD tractors are down 6.3 per cent and 4WD tractors are down 34.6 per cent in comparison to the first quarter of last year. Combines were the only bright spot with a 8.3 per cent increase in the first quarter in comparison to 2018.
Jim Wood, vice president at Rocky Mountain Equipment says, “The tractor deliveries are more indicative of what we are seeing in the industry. Combine deliveries are just a result of manufacturers pre-sell deliveries and we should see this level off as we move farther into the year.”
Curt Blades, AEM senior vice president, Ag services stated to RealAgriculture, “the Canadian numbers are certainly softer then the US numbers. As I talk to my members the trade uncertainty of the USMCA not being done yet is creating some angst in the country side and the currency exchange rate is creating somme havoc on the used market and that is impacting the new market as well.”
In the United States sales look to be better in comparison to the same period last year. In the first quarter for this year, sales of 2wD are up 5.7 per cent, 4WD tractors are up 24.6 per cent, and combines are up 35.9 per cent in comparison to the same time last year.