U.S. retail sales of tractors under 40 horsepower (HP) and 40 to 100 HP rebounded in August, while sales of the larger tractors, as well as combines, continued their double-digit declines, according to the latest monthly data from the Association of Equipment Manufacturers.
U.S. retail sales for 2-wheel-drive (WD) tractors under 40 HP gained 21.2% in August compared to a 6.3% decline in July, with year-to-date (YTD) sales up 11%.
While August sales of 2WD tractors 40 to 100 HP were down 0.7% that compares to a 23.3% decline for July, improving the still-negative year-to-date numbers slightly to a – 5.3%.
Monthly sales of the larger tractors and combines fluctuated a little from July, but the pace of year-to-date sales in August was virtually unchanged compared to July:
Sales of 2WD 100-plus HP tractors in the U.S. dropped 27% for August, with August year-to-date sales down 24.2%; down 24% July YTD.
August 4WD tractor sales declined 48.1% year-over-year and were down 33.7% for August year-to-date; down 33.6% July YTD.
Combine sales declined 22.4%for August and recorded a 22.1% drop for August year-to-date; down 22.0% July YTD.
“Growth in the under 40 HP tractor segment was strong for August and farm tractors in the 40 to 100 HP range once again reversed their monthly trend,” said Charlie O’Brien, Association Senior Vice President. “When combined, these two segments outperformed their five-year average (from 2011 to 2015), mainly driven by the smaller equipment, however.
“Earlier in the year, we felt that the market was stabilizing, but as we pass the midpoint of 2016, we continue to see the smaller equipment is thriving overall, while the larger production ag equipment remains depressed,” O’Brien adds.