There are concerns about farm profitability in 2024, leading to speculation that the equipment industry will face sales challenges as a result. Each month, the Association of Equipment Manufacturers (AEM) provides an analysis of the emerging equipment sales environment in Canada and the United States.
In Canada (see table below), April numbers show strength in the combine market, with year-to-year sales up 17.7%. Meanwhile, total tractor sales are down 16% year-to-date, a combination of a 9.2% year-to-date increase in four-wheel-drive tractors and a 17.1% year-to-date decline in two-wheel-drive tractors.
Looking at April’s results, year-on-year comparisons for the month clearly show that combines, tractors with over 100 horsepower, and four-wheel drive tractors are doing well.
In the United States (see table below), the market will see lower sales of new equipment compared to Canada and domestically in 2023. At the end of April, the only category showing an increase from the beginning of the year was four-wheel drive tractors, which increased by 1.9%. Combine harvesters (-13%) and two-wheel drive tractors (-10.2%) both decreased compared to the first four months of 2024.
Comparing April U.S. sales to April 2023, four-wheel drive tractors were up 24.1% and combines were up 6.7%.
with many analysts including papers on farm credit canada, With the expected decline, this will be an interesting year to see how new equipment sales pan out.
