Unfortunately for Canadian retailers, tractor sales continue to be in the red this year. According to the latest flash report from the Association of Equipment Manufacturing (AEM), total farm tractor sales are down by 4.4 per cent for the year-to-date ending in September.
To break it down further, two-wheel drive tractors with 40- to 100-horsepower had sales decline by 12.8 per cent, while tractors with more than 100-horsepower had sales drop by 16.5 per cent. On the plus side were tractors with less than 40 horsepower, as sales were up by 3.4 per cent.
Four-wheel drive tractors dropped by the most, at 32.9 per cent year-to-date. In total, 17,343 tractors remain in inventory as of September, the association reports.
Combine sales slumped 27.7 per cent, year-over-year, with 786 combines remaining in inventory.
“It’s clear that due to a softening in the markets and farm profitability that farmers are scaling back on the purchase of new equipment,” says Shaun Haney, RealAgriculture founder.
The report issued for September shows sales were higher than the years 2016 and 2018 respectively, but are still below the five year average.
American tractor sales to date are up, but not by much. Four-wheel drive tractors are up by 4.9 per cent. Two-wheel drive tractors with less than 40-horsepower are up by 6.4 per cent, those with 40- to 100-horsepower are up by 1.2 per cent, and those with more than 100 horsepower are up by 3.4 per cent.
Combine sales down south were up by 1.8 per cent. Inventory for both tractors and combines for the month of September are at 133,491 and 1,598 respectively.