Tractor sales in Canada rise for second month in a row

After many months trending behind historical levels, July marked the second straight month of higher tractor and combine sales in Canada, according to the latest data from the Association of Equipment Manufacturers.

Sales of new two-wheel-drive machines in Canada were up 32.5 per cent versus July of last year, and are now 5.3 per cent ahead of last year at this point thanks to strong sales in June and July, says AEM.

Much of this increase was driven by higher sales of under-40 horsepower tractors, which were up 42.1 per cent versus last July — possibly related to the COVID-19 trend of people spending more time at home and working on their yards.

Sales of 40 to 100 hp tractors were up 19.3 per cent, while AEM reports sales of 100+ horsepower machines rose 2.4 per cent compared with July 2019.

Four-wheel-drive tractor sales were 88.2 per cent higher compared to last July, but are still 12.4 per cent behind last year when comparing year-to-date figures.

Combine sales were also much higher, up 41.1 per cent compared to July 2019. Year-to-date combine sales in Canada are now only down 16.8 per cent versus last year.

U.S. tractor sales were positive for the fourth month in a row, as total farm tractor sales rose 34.1 per cent in July compared to 2019. U.S. combine sales grew 33.6 percent, while four-wheel-drive tractors continued their decline in unit sales in the U.S. in July, falling 21.2 per cent in July and 12.8 per cent year-to-date. Total year-to-date sales of all farm tractor in the U.S. are up 14 percent in 2020, while combines broke into positive territory for the first time in 2020, now up 4.1 percent in the same period.

“We’re continuing to see demand in the small, medium, and harvesting sectors,” notes Curt Blades, AEM’s senior vice president of ag services. “The continuously-developing nature of the COVID-19 situation, and its effect on the agricultural sector, is keeping our optimism cautious. Growth in the U.S. market has outpaced the five-year average each month, so we’re hoping that continues.”


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