There was a bit of a bright spot in the most recent sales report from the Association of Equipment Manufacturers. In the July Flash Report, sales of tractors in the under-40-hp segment were up 31 percent for the month (compared to July 2014) and sales in the 40-hp to under-100-hp segment were up 21.5 percent for the same period. Year-to-date, sales in the under 40-hp segment are 8.4 percent ahead of last year, and sales in the 40- to under- 100-hp segment are up a touch at 2.3 percent ahead of last year’s pace.
While those two segments are a significant portion of total sales, other segments didn’t fare so well and continue to struggle year to date. Sales of 100+-hp tractors were down 24.1 percent for the month and lag 18.7 percent below last year’s pace. Four-wheel-drive tractors remain stuck, down nearly 34 percent for the month, and remain 43.4 percent behind last year’s pace.
Combine sales are also slow, down 34.2 percent for the month, and 40.5 percent behind last year’s pace.
It’s a trend that’s likely to continue into the fall, especially considering lagging commodity prices, weather considerations and a generally soft ag economy. It definitely is a buyer’s market, and it will be interesting to see how companies will work to earn some sales as we round out the fall.
Are you in the market?