New data from the Association of Equipment Manufacturers (AEM) in the US “bodes well for the industry for the remainder of the year”.
The association says that both US and Canadian retail sales of agricultural tractors and combine harvesters saw growth in June, compared to this time a year ago. It reports that “all machine categories are making their way into the plus column”.
“The agricultural equipment industry is improving and moving toward a demand/replacement cycle,” explained Scott Harris, vice president of Case IH’s North American division.
Because of this, we see the opportunity for continued growth in tractor and combine sales for the rest of 2018.
According to the AEM’s mid-year reports, US retail tractor sales (of all categories of farm tractors) rose by circa 12% in June, when compared to the same month in 2017.
In addition, the reports indicate that sales of (self-propelled) combines in the US also saw a small jump of 3.8%, compared to June of last year.
Sales of 4WD tractors saw the biggest jump of any US machine category last month, rising more than 23%.
Meanwhile, Canadian retail sales of all categories of farm tractors were up nearly 10%. Sales of (self-propelled) combines there saw a jump of more than 58% (the largest jump of any machine category in the AEM’s most recent reports).
“We view 2018 as a re-building year for agriculture; we’ve experienced a steadily improving economy, tax reform provides incentives and machines need to be replaced,” said Curt Blades, AEM senior vice president of agricultural services.
Impact of trade tariffs
“We’re still concerned with the impact of tariffs and trade wars on continued stability for manufacturers and their customers. We’re encouraged by recent House and Senate passage of their 2018 Farm Bills, and we are emphasising cooperative action on a final bill,” he added.
“Inclusion of crop insurance safeguards and other provisions will help provide some business certainty for farmers and ranchers.”