It’s not a surprising trend, as farmers have indicated that equipment is one place they’re trying to cut expenses, but sales of nearly all equipment classes on both sides of the border continued their downward slide in November.
To break down the latest numbers put out by the Association of Equipment Manufacturers (AEM), host of RealAg Radio Shaun Haney sits down with Curt Blades, vice president of AEM, in the video below.
There’s no two ways about it: the numbers are down. Canadian sales of new tractors dropped 18.8 per cent in November compared to last November, and combines fell 39.4 per cent in November compared to last year. In the U.S., sales of tractors in all classes dropped 14.5 per cent compared to November 2023 and combine sales declined 24 per cent, year-to-date.
Equipment manufacturers have been working to adjust supply to better match demand, which unfortunately has meant layoffs and decreased production, Blades says. This current pullback is expected to likely last well into 2025, but there are plenty of things that could happen to turn farm incomes around and breathe some new life into equipment sales.
But there are some troubled waters to navigate over that same timeframe, as components brought in from overseas or steel and other base products may end up subject to tariffs that would have an overall negative impact on equipment manufacturers.
The reality is, Blades says, equipment manufacturing is a global market, and U.S. tariffs would disrupt that global flow and prices, at least in the short term.
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