By Ben Potter


Farm equipment sales have been on the downward slide – for the most part. There are still some bright spots in the data, however.

According to the Association of Equipment Manufacturers (AEM) January 2016 retail sales report, several equipment categories are down from a year ago, including 40 HP to 100 HP 2WD tractors (-5.7%), 100 HP 2WD tractors (-38.5%) and 4WD farm tractors (-9.3%).

However, two equipment categories saw increased sales from a year ago, including under 40 HP 2WD tractors ( 13.0%) and combines ( 21.4%).

“We’re seeing some bright spots in the data from January sales, and our members tell us they are gearing up efficiency and are better prepared to meet the challenges of this new normal than they were 12 months ago,” says Charlie O’Brien, AEM senior vice president.

O’Brien says USDA estimates net cash farm income will be down a third consecutive year in 2016, albeit by only 2.5%.

“[This] indicates stabilization in comparison to the more than 30% drop last year,” he says. “While this deterioration in farm economics will undoubtedly affect our industry, there is still some hope that production ag might get a boost from an extended Section 179.”




Data was compiled from AEM member companies and analyzed by AEM’s Market Intelligence department. For more information, visit www.aem.org/agreports.