Technology improvement and commodity prices drive equipment sales in May

While the pandemic continues to drive the downward trend in low-horsepower tractor sales, large equipment sales continue to grow in May, according to the Association of Equipment Manufacturers (AEM).

"The trends seen here are still being informed by the pandemic-driven highs in past years, especially in the sub-40 horsepower segment that, this month, makes up nearly 70% of total unit sales volume in ag tractors," says Curt Blades, senior VP of industry sectors and product leadership at AEM. "The continued growth in bigger units and harvesters indicate two trends. First, farmers see enough improvement in the technology to make a clear business case for this investment, and second, they feel confident that positive commodity prices will continue, allowing them to afford the expense."

Tractor sales

Total farm tractor sales for May 2023 were 27,266, down 0.7% from 2022 with 27,462 sold. Year to date, AEM reports 102,725 total farm tractors were sold as of May this year, down 12.2 from 116,993 this time last year.

Tractor sales are broken down by horsepower range as follows:

Sales for 2WD sub-40 hp tractors in May were down 2.7% from 2022, with 19,048 sales this year, and 19,582 last year. Year to date, AEM reports 68,289 tractors have been sold in this category, down 16% from 81,258 at the same time last year.

Sales for 2WD 40-100 hp tractors in May were up 0.9%, with 5,770 sales this year, and 5,717 last year. Year to date, AEM reports 23,016 tractors have been sold in this category, down 9.4% from 25,412 at the same time last year.

• READ MORE: Strong commodity market boosts large ag equipment sales

Sales for 2WD 100-plus hp tractors in May were up 9.8%, with 2,182 sales this year, compared to 1,987 last year. Year to date, AEM reports 9,858 tractors have been sold in this category, up 6.1% from 9,292 at the same time last year.

Sales for 4WD tractors were up 51.1% in May, with 266 sales this year, and 176 last year. Year to date, AEM reports 1,562 tractors have been sold in this category, up 51.5% from 1,031 at the same time last year.

Combine Sales

Sales for self-propelled combines were up again in May, up 54.6% with 487 sales this year compared to 315 last year. Year to date, AEM reports 2,565 combines have been sold as of May, up 68.3% from 1,524 at the same time last year.