Equipment Sales Data is Optimistic
Tractors have been trending below their 2021 sales levels, but combines have been showing healthy growth. Curt Blades of the Association of Equipment Manufacturers says their recently released monthly sales data tells the story.
Blades…. “Tractors that are over 100 horsepower and combines are actually up for the year. That's a pretty good indication that the farm economy or the true farm tractors, demand is particularly strong. Then we do see quite a little bit of a drop off in that smaller horsepower, certainly that under 40 horsepower tractor market. That's a couple of things, one is that the sales in 21 was just phenomenal. So, we're comparing against some really record-high numbers coupled with some supply chain availability challenges. And also, I think you might say that we're getting back to work and a lot of that demand that happened in 20 and 21 for that small tractor market was directly related to the pandemic and people staying home more.”
Supply chain challenges remain an issue for the industry, but Blades remains optimistic about the ag economy over the next year.
Blades… “I remain optimistic that 2022 is going to finish out to be a very strong year for the ag economy. 2023 is also looking particularly good. Obviously, there's some concerns with the price of inputs and there are some weather issues here and there and we get still have to get that crop completely out of the field. But as farm income goes, so goes the sales of new and used equipment, and so I remain optimistic that 22 is going to round out to be a good solid year, 23 is looking up to be solid as well. But time will tell.”
Learn more at www.aem.org.