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Tractor and combine sales decline as inventory tightens

New data from the Association of Equipment Manufacturers shows tractor and combine sales declined in March for the first time since July 2021.

Senior Vice President Curt Blades tells Brownfield total US tractor sales fell 21% and combine sales fell 10% from March of last year.

“We are still well above the five-year average, but we are comparing against numbers that were very high at this time last year.”

He says another big factor is a 10% decline in inventory led by a broad range of supply chain issues including labor shortages in the transportation sector, higher prices for steel, and trouble accessing parts like chips and wiring harnesses made in other countries.

But Blades says there appears to be light at the end of the tunnel.

“We are hearing from our component manufacturers that they are starting to see a little bit of level. We are hearing from the OEM’s that they can look ahead 6-12 months and see that maybe there is a degree of return to normalcy, assuming everything continues in the trajectory that is it going right now.”

He says the drop in sales is not an accurate reflection of demand as farmers are still looking to buy both new and used equipment, especially after a year of good farm income.