With farm profitability being a concern for 2024 comes speculation that the equipment industry will face sales challenges as a result. Every month the Association of Equipment Manufacturers (AEM) provides an analysis of the new equipment sales environment for Canada and the United States.
In Canada (see table below), the April numbers show strength in the combine market with an increase in year-over-year sales to date of 17.7%. On the other hand total tractor sales are down 16 per cent YTD which is a mixed result of four wheel drive tractors up 9.2% and two wheel drive tractors down 17.1% YTD.
As you look at the April results, there is definite strength in the combine, 100+ horsepower tractors, and four-wheel-drive tractors in the year-over-year comparisons for the month.
In the United States (see table below), the market is weaker for new equipment sales in comparison to Canada and 2023 domestically. The only category that is up year-to-date at the end of April is four-wheel drive tractors by 1.9%. Both combines (-13%) and two-wheel drive tractors (-10.2%) are down compared to the first four months of the year in 2024.
When you look at the United States sales numbers for the month of April comparitively to April 2023, four wheel drive tractors were up 24.1% and combines were up 6.7%.
With many analysts including a paper from Farm Credit Canada, expecting a decline, it will be a fascinating year to see how new equipment sales pan out.
