Tractor, Combine Sales Decline in June

Evidenced by layoffs at farm equipment manufacturers, there is no doubt sales of new tractors and combines have softened substantially, a new report from the Association of Equipment Manufacturers (AEM) confirms.

AEM's June 2024 Tractor and Combine report shows total tractor sales are off 16.1% compared to sales recorded in June 2023. Digging into that June number, AEM reports that 100-plus-horsepower (two-wheel-drive) tractor sales are down 13.9% in June compared to June 2023 and are down 4.2% for the year compared to the first six months of 2023.

Sales of four-wheel-drive tractors were off 1.3% in June, compared to June 2023. Sales of the big tractors remain narrowly positive for the year, up 2.7% compared to January through June 2023.

What has been true for many months was still true last month. Monthly sales of small tractors were off sharply again. Less-than-40-horsepower tractor sales were down 18.7% in June compared to June a year ago and are down 13.8% for the year compared to the same period last year. Sales of 40- to 100-horsepower tractors were down 10.4% last month, compared to June 2023 and are down 8.6% for the year compared to the first six months of 2023.

The result is no different for combines. Combine sales declined 31% in June compared to June 2023. For the first six months of this year compared to the first half of 2023, combine sales are down 17.3%

"June's sales of ag tractors and combines follow a May that also showed a slowdown in sales," said AEM Senior Vice President Curt Blades in a release from AEM. "This softness in the market follows a robust five years of sales. The challenges facing the subcompact tractor market illustrate why the passage of a strong farm bill is so needed to lift rural America and our farmers and growers."

In Canada, the sales picture is brighter. Sales of 4-wheel-drive tractors grew 10.6% in June compared to June 2023. Canadian sales of combines increased year to date, finishing the month up 13.6%.

Dan Miller can be reached at dan.miller@dtn.com

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