bodes well for the industry for the remainder of the year.
Both U.S. and Canadian retail sales of ag tractors and self-propelled combines saw growth in June, compared to this time a year ago, with all machine categories making their way into the plus column.
“The ag equipment industry is improving and moving toward a demand replacement cycle,” said Scott Harris, vice president – North America for CASE IH. “Because of this, we see the opportunity for continued growth in tractor and combine sales for the rest of 2018.”
According to the mid-year reports:
- U.S. retail sales of all categories of farm tractors rose by nearly more than 12 percent in June, when compared to the same month in 2017.
- Sales of self-propelled combines in the U.S. also saw a small jump of 3.8 percent, compared to June of last year.
- Sales of 4-wheel-drive tractors saw the biggest jump of any U.S. machine category last month, rising more than 23 percent.
- Canadian retail sales of all categories of farm tractors were up nearly 10 percent.
- Sales of self-propelled combines saw a jump of more than 58 percent, which was the largest of any machine category.
“We view 2018 as a rebuilding 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 ag services. “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 emphasizing cooperative action on a final bill. Inclusion of crop insurance safeguards and other provisions will help provide some business certainty for farmers and ranchers.”