In the U.S., 100+hp 2WD tractors, and 4WD tractors grew year-over-year. Both segments, along with self-propelled combines remain positive for the year. The biggest overall growth among tractors happened in 4WD units, growing more than 113 percent in September. In Canada, 4WD sales finished the month in a similar position, up more than 91 percent.

“With the technology in today’s equipment, it’s no surprise to see the 4WD segment continuing to grow as farmers look to increase their yields. This segment has been strong all year, as farmers are continuing to invest in productivity gains for their operations.”

said Curt Blades, senior vice president, industry sectors and product leadership at the Association of Equipment Manufacturers.

Overall unit sales of U.S. tractors are down 4.3 percent compared to sales in September 2022, with 100+hp 2WD units being the only other growth segment, while combine sales finished nearly flat, only selling 8 fewer units than the previous year. Canadian tractor sales fell nearly 14 percent, with combines declining more than 37 percent.

Year to date at the end of the third quarter of 2023, combine sales overall are positive, up more than 25 percent, while tractors altogether are down just over 8 percent in the U.S. Year-to-date Canadian tractor unit sales didn’t change pace much versus the previous month, now down just over 14 percent, while combines are up 16.5 percent.

Source: AEM

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“We’re just right at the cusp of some really interesting innovations as we begin to implement artificial intelligence and advanced sensors into the machines themselves. Whether that’s a machine that identifies weeds and treats them specifically or identifies pests and deals with them on the fly, we’re on the forefront of some really great technology that farmers will begin to see in their fields within the next year or two.”

said Curt Blades, senior vice president of ag services at the Association of Equipment Manufacturers (AEM).

With continued development of artificial intelligence and machine learning, sensor technologies, digital miniaturization and increased electrification in the tech space, more and more of those technologies are finding their way to the field. That is allowing farmers to tackle some of the environmental challenges the world is facing.

The environmental advantage comes from GPS technologies, that drive a tractor or combine more accurately, meaning the work gets done more quickly and the engine gets turned off sooner. Precision application technologies, can significantly reduce the amount of fertilizers and pesticides applied to crops by directing them only to the plants they are intended for, and not other plants or the bare ground in between rows.

“It makes sense for a farmer financially, but it also has a societal gain as there are fewer inputs involved. And that’s ultimately very good for the environment as well as the farmer.”

Blades explained.

The other challenge facing America, and farmers especially, is the tight labor market. While labor shortages may be relatively new to the American economy at large, a combination of political and economic pressures have made this a challenge for farmers for more than two decades. The most impacted segment of the ag economy? Specialty crops.

“’Specialty crop’ is a pretty broad term, but it encompasses a number of things, including fruits and vegetables. You’ve got trees, flowers, and even aquaculture, so when we talk about ‘specialty crops’ it’s a very broad term.”

said Austin Gellings, manager of ag services at AEM, who focuses on specialty crop issues.

While ‘specialty crop’ is a very broad term, they frequently share one main commonality: Human labor.

“The reason there hasn’t been much mechanization in this market is because specialty crops are delicate. What you ultimately harvest is what the consumer ends up buying and seeing in the store, and most people don’t want to buy damaged produce. With specialty crops, you have to be delicate in the way you handle it, making mechanization more difficult.”

Gellings continued.

However, as the number of farm hands willing to maintain, handle and harvest produce continues to dwindle, the need for machines that can handle these delicate crops and get them out of the field and into the grocery store is growing significantly. There is also an environmental benefit here as well, as more mechanization for specialty crops mean fewer tons of produce are left to rot in fields.

Gellings explained:

“It’s very labor-intensive now. But one machine can do, on a per-hour basis, what 20 people are capable of doing. So being mechanized not only allows you to do more, to produce more, it also helps eliminate food waste in the fields because we’re able to get food out of there when it needs to get out of there.”

“It’s amazing, the amount of technology that’s built into a tractor, combine, sprayer or into a seeder. Some of the most high-tech, data-intensive applications in technology today are happening in agriculture, and I encourage everyone to take a look because it’s really exciting to see what the future holds for this industry.”

Blades said.

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U.S. total farm tractor sales rose 22.7 percent in April compared to 2020, which was the first month of the current sales growth trend, while U.S. self-propelled combine sales fell 3.2 percent. U.S. tractor sales grew across every segment, with the biggest gains in the 100+hp segment, up 29.2 percent. The midsize 40-100hp units were up 28.8 percent, and the sub-40hp class is up 20.8 percent. Four-wheel-drive units grew 15.1 percent, putting them up 12 percent year-to-date.

For Canada, April monthly tractor and combine sales were positive across all segments, with the 4WD segment nearly doubling, up 93.3 percent to 201 units sold, while total farm tractor sales were up 72.3 percent to 3,671 units sold. Self-propelled combines also grew 23.1 percent.

“April was the month we were watching to see how this growth trend would look once it hit the official twelve-month mark,” said Curt Blades, Senior Vice President of Ag Services at the Association of Equipment Manufacturers.

“Seeing the larger row-crop units leading the way in segment gains shows the pull rising commodity prices have been having on equipment sales.”

The “why” behind record-high AG equipment sales: the floor to Curt Blades

“We’re operating in a very interesting market right now,” says Curt Blades, Senior VP of Ag Services for the Association of Equipment Manufacturers (AEM).

So far, in the first quarter of 2021, total farm tractor unit sales are up more than 50 percent in the U.S., and nearly 60 percent in Canada, according to the AEM Ag Tractor Combine Report released monthly.

“For the last twelve months, we’ve seen a dramatic rise in under-40-horsepower, or small tractor sales in North America, both U.S. and Canada,”

says Blades. “This is due largely to a lot of the industries that have done very well during the pandemic, like luxury items or things that have to do with the home.”

Small tractors fall into that category as well.

Blades says the small tractors that have been spiking are largely going to the suburbs with larger lots to help homeowners haul rocks and dirt, work around trees, and overall improve the property. However, starting later in 2020, larger row-crop and articulated 4WD tractors have also enjoyed increasing sales success.

One reason has been the gradual increase, over the past five years, of the average age of the ag fleet in both the U.S. and Canada. However, with commodity prices increasing, and trade difficulties starting to ease, not only is the replacement market doing well, but farmers are upgrading their operations with newer technology.

“We’re seeing an increase in commodity prices. We’re seeing some of the uncertainty of trade wane,” says Blades. “As a result, people are willing to invest a little more in their farming operations and we’re seeing that reflected in capital equipment.”

There has been some difference in the past 12 months between sales in the U.S. and Canada, however, Blades says it’s typical for one market to “lead” the other.

“In this current recovery, we’ve seen the U.S. has been leading Canada,”

says Blades. “But both markets are particularly strong right now on both sides of the border.”

Blades does advise that equipment inventories having been reduced significantly through these sales trends. However, he says dealers are being proactive, especially when it comes to keeping parts for their service centers in stock, but farmers looking to buy new machines may have to order several months ahead of expected delivery.

“I think you’re seeing a lot of optimism out there. And that optimism is leading to a lot of new equipment purchases, but also farmers thinking about what their businesses are going to look like into the future,” says Blades.

“It is an interesting time that we’re operating in. Tractor sales are strong, commodity sales are particularly good, and optimism is at an all-time high in the farming community.”

Download the last AEM Market Data analysis at the following link:

U.S. report

Canada report

Source: AEM

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U.S. total farm tractor sales decreased 15.6 percent in March compared to 2019 while U.S. March self-propelled combine sales fell 11.9 percent. That includes decreases in all segments, with combines and 40-100hp tractors (-15.2 percent) performing the best.

For Canada, November 100+hp tractor sales were the lone growth spot in North America, however, overall Canadian tractor unit sales fell 23 percent, with self-propelled combines following along losing 38.1 percent.

When compared to similar industries, like the U.S. auto and light truck market where the U.S. Bureau of Economic Analysis shows March unit sales having fallen nearly 42 percent overall, and a similar drop in U.S. heavy truck sales according to the St. Louis Fed, farm tractors and self-propelled combine unit sales are in better shape.

Curt Blades, senior vice president of Ag Services at the Association of Equipment Manufacturers said:

“Although the March numbers were likely impacted by COVID-19, It is too soon to tell the long-term impact of the current crisis on ag equipment sales. AEM has been working diligently to ensure agriculture is declared an essential industry by the governments in North America.  As a result, our number one priority as an industry right now is doing what we can to meet the needs of farmers during planting time while keeping our employees and customers healthy.”

The full reports can be found in the Market Data section of the AEM website under Ag Tractor and Combine Reports.

Source: AEM

The post AEM releases March 2020 Ag Equipment Sales numbers appeared first on North America FarmQuip Magazine.

2020 AEM Officers are:

• Chair Jeffrey Reed, President & CEO, Reed International/VSS Macropaver
• Vice-Chair Steven Berglund, President & CEO, Trimble Inc.
• Ag Chair Jerry Johnson, President Farm, Ranch & Agriculture Div., Blount International Inc.
• CE Chair Rodney Schrader, Chairman & CEO, Komatsu America Corp.
• Treasurer Todd Stucke, Sr. VP Marketing, Product Support & Strategic Projects, Kubota Tractor Corp.
• Secretary Dennis Slater, President, AEM

AEM officers and directors come from an industry cross-section and work on behalf of all member companies to provide strategic direction and guidance for the association’s initiatives in areas including public policy representation, market information and equipment statistics, trade shows, product safety and technical support.

“AEM benefits from the support of our member companies and the leadership talents of our Board members, and we greatly appreciate their active participation”

said AEM President Dennis Slater. “Their engagement and contributions help ensure that we deliver quality results as we continue to build momentum for the equipment manufacturing industry and offer the best possible services and programs for members.”

Directors elected to the AEM Board of Directors:

• Ted Bojanowski, VP Sales and Marketing, Parker Hannifin Corp.
• Grant Godbersen, VP Manufacturing, GOMACO Corp.
• Michael Haberman, President, Gradall Industries Inc.
• Jerry Johnson, President Farm Ranch & Agriculture Division, Blount International Inc.
• Philip Kelliher, VP Americas Distribution Services Marketing, Caterpillar Inc.
• Leif Magnusson, President, CLAAS of America Inc.
• Ray O’Connor, President & CEO, Topcon Positioning Systems Inc.
• Brad Olson, Vice President, Two Rivers Marketing
• Austin Ramirez, President & CEO, Husco
• Jeffrey Reed, President & CEO, Reed International/VSS Macropaver
• Todd Stucke, Sr. VP Marketing, Product Support & Strategic Projects, Kubota Tractor Corp.

Directors elected to the AEM Ag Sector Board:

• Grant Adolph, COO, Buhler Industries Inc.
• Kim Boccardi, VP Marketing, Titan International
• Fernando Cuccioli, Exec. VP Cluster Americas, DeLaval Inc.
• Charlene Finck, Div. President Producer Media, Farm Journal
• Gene Fraser, VP Global Sales & Marketing, MacDon Industries Ltd.
• David Gilmore, Senior VP Global Marketing, Ag & Turf Div., Deere & Co.
• Jerry Johnson, President Farm, Ranch & Agriculture Div., Blount International Inc.
• Darryl Matthews, Sr. VP Natural Resources, Trimble Inc.
• Brian Nelson, President & Chairman, HCC Inc.
• Viren Popli, President & CEO, Mahindra USA Inc.
• James Wessing, President, Kondex Corp.
• Jeremy Yoder, COO, DISTek Integration Inc.

Directors elected to the AEM CE Sector Board:

• Brian Bieller, President & Regional GM, Dynapac
• Mary Erholtz, VP of Marketing, Superior Industries Inc.
• John Grote, Global VP, Sales & Marketing, Grote Industries Inc.
• Willie Harbert, VP Sales, Eaton
• Robert Mortensen, President Off-Highway Div., Husco
• Frank Nerenhausen, President, JLG Industries Inc.
• Ray O’Connor, President & CEO, Topcon Positioning Systems
• Rick Rodier, Group VP, Construction Businesses, The Toro Company
• Ingo Schiller, President North America Operations, Tadano America Corp.
• Johannes Schulze Vohren, Exec. VP Sales & Marketing, Wacker Neuson Corp.
• David Thorne, Sr. VP Worldwide Sales & Marketing, Construction & Forestry Div., Deere & Co.
• Patrick Weiler, President, Weiler

Source: Association of Equipment Manufacturers

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