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Tractor, combine sales rebound in March

U.S. sales of four-wheel drive tractors and self-propelled combines rose by double digits in March compared to one year ago.

According to the Association of Equipment Manufacturers (AEM), four-wheel drive tractor sales increased 21 percent and combine sales were up 11 percent compared to March of 2016.

But AEM’s Charlie O’Brien says those numbers need to be kept in context.

“Those are good numbers and we haven’t seen a lot of positive numbers here for several years,” O’Brien says. “But the reality is that those are two areas where they’re small numbers, so percentages can shift quite a bit. But still, it’s very positive to see that.”

O’Brien says reductions in used equipment inventories are allowing retailers to focus more on new equipment sales.

“Inventories have impacted new sales for quite a while and we’re seeing those inventories dropping quite a bit overall,” he says. “If we look at the U.S. and Canada together, the 100 horsepower and above (tractors) has dropped 30 percent; four-wheel drive has dropped 40 percent; and combines are down 36 percent from previous levels,”

Despite the March increase, first quarter sales of four-wheel drive tractors are still off 13 percent and combines sales down 16 percent from the first three months of 2016.

AUDIO: Charlie O’Brien