Analysis of Ag Equipment Sales Trends for Farmers and Industry Stakeholders
Milwaukee — The Association of Equipment Manufacturers (AEM) has released its June 2024 Ag Tractor and Combine Report, offering a detailed overview of retail sales trends in the agricultural equipment market. This report, compiled from data provided by AEM member companies, highlights significant shifts in the sales of two-wheel drive (2WD) and four-wheel drive (4WD) farm tractors, as well as self-propelled combines.
June Sales Figures and Year-to-Date Comparisons
In June 2024, sales of 2WD farm tractors under 40 horsepower (HP) reached 14,793 units, marking an 18.7% decrease from the 18,187 units sold in June 2023. Year-to-date (YTD) sales for this category stand at 74,780 units, down 13.8% from 86,790 units during the same period last year. Inventory at the beginning of June 2024 was 82,130 units.
For 2WD farm tractors in the 40 to 100 HP range, June sales totaled 5,650 units, a 10.4% decline from June 2023’s 6,304 units. YTD sales in this segment were 26,480 units, an 8.6% drop compared to 28,976 units in 2023. The beginning inventory for June 2024 was 38,034 units.
Sales of 2WD farm tractors over 100 HP fell by 13.9% in June 2024, with 2,119 units sold compared to 2,462 units in June 2023. YTD sales for these high-power tractors were 11,776 units, a 4.2% decrease from 12,289 units the previous year. Inventory at the beginning of June 2024 stood at 12,544 units.
Overall, the total sales of 2WD farm tractors in June 2024 amounted to 22,562 units, down 16.3% from June 2023’s 26,953 units. YTD sales for 2024 were 113,036 units, representing an 11.7% decrease from the 128,055 units sold in 2023. Beginning inventory for this category was 132,708 units.
The 4WD farm tractor segment saw a slight decline in June 2024, with 308 units sold compared to 312 units in June 2023, a 16.3% decrease. However, YTD sales increased by 2.7%, with 1,923 units sold compared to 1,873 units in 2023. Beginning inventory for June 2024 was 825 units.
Combining the figures for both 2WD and 4WD tractors, total farm tractor sales in June 2024 were 22,870 units, a 16.1% decrease from June 2023’s 27,265 units. YTD sales for all farm tractors were 114,959 units, an 11.5% drop from 129,928 units in 2023. The beginning inventory for June 2024 was 133,533 units.
Sales of self-propelled combines experienced a significant downturn in June 2024, with 463 units sold compared to 671 units in June 2023, a 31.0% decrease. YTD sales of combines were 2,673 units, down 17.3% from 3,232 units in 2023. Beginning inventory for June 2024 was 1,539 units.
Implications for Farmers and Industry Professionals
These sales trends indicate a notable reduction in the demand for agricultural equipment, particularly in the 2WD farm tractor and self-propelled combine segments. Farmers, agronomists, and agricultural equipment managers should consider these trends when planning equipment purchases and managing inventory. The data suggests a cautious approach may be necessary due to declining sales and potential overstock in certain categories.
Manufacturers and suppliers of agricultural equipment and related products must adjust their strategies to align with these market shifts. The focus should be on understanding the underlying causes of reduced demand, whether they are economic factors, changing agricultural practices, or technological advancements.
Conclusion
The AEM Ag Tractor and Combine Report for June 2024 underscores the dynamic nature of the agricultural equipment market. By closely monitoring these trends, industry stakeholders can make informed decisions to navigate the evolving landscape effectively.
For more detailed information and separate reports for the U.S., Canada, and Russia, visit the AEM website at AEM Market Share Statistics.
