AEM says tractor sales down 15.6%
The Association of Equipment Manufacturers has seen a decrease in total farm tractor sales. AEM’s Ben Duyck says they’re down 15.6% compared to 2019. He says, “That includes decreases in all segments with combines and 40 to 100 horsepower tractors performing the best. Although the March numbers are obviously likely impacted by COVID-19 it’s too soon to tell the long term impact of this crisis on ongoing ag equipment sales.”
Duyck went over the adjusted forecast for the ag equipment industry from Oxford Economics, “It is set to decrease 15% in 2020 but is expected to rebound rather quickly according to Oxford in 2021. The worse outlooks have predicted that we might be down 26% for the year but even those outlooks have us rebounding six to 10% in the following years.”
He says COVID-19 and the uncertainty over food demand and what equipment will be needed is on top of the uncertainty about whether China will fulfill its trade obligations with the U.S. under the phase one deal.