Analysis of the monthly report from the Association of Equipment Manufacturers shows Canadian sales in March of all types of tractors and combines down compared to 2021 numbers.
By Andrew Joseph, Farms.com
Following a similar result in February 2022, sales of 4WD farm tractors again showed a solid dip in Canadian sales according to a report issued by the Association of Equipment Manufacturers (AEM).
March sales results for all types of tractors (2WD and 4WD) and self-prop combine units also showed negative growth when compared against 2021 data.
March 2022 saw 2,270 total farm tractors sold. Although up when compared to February 2022 numbers of 1,683 farm tractors sold, sales slumped by 5.1 percent compared to March 2021 results (2,447 units).
Year-to-date numbers of total tractors sold in 2022 as positive at 5,653 units sold versus 2021’s 5,630 units sold—a 0.4 percent uptick.
For the <40HP 2WD farm tractors when 1,147 units were sold in February of 2022, in March of this year 1,514 units were sold—up by 24.3 percent, but down by 3.4 percent when compared against March 2021 numbers. The March numbers over February 2022 numbers are expected as planting season nears.
In a year-to-date comparison, 2022 data still shows a favourable outcome: 3,763 units sold in 2022 versus 3,762 units sold in 2021 for essentially a zero percent change.
For the 2WD farm tractors of 40 to <100HP, 488 units were sold in March of 2022 (compared to 347 units sold in February 2022), but when compared against March 2021 numbers of 503 units sold, it is a decline of 3.0 percent.
The sales of the 100+HP 2WD farm tractors also took a hit: March 2022 saw 268 units sold versus February 2021’s 281 units—a decrease of 6.6 percent. For reference, in February of 2022, 167 units were sold.
In a year-to-date comparison for this sector, the 2022 numbers stand at 648 units sold compared to 606 in 2021, up by 6.9 percent.
The numbers for 4WD tractors also fell. March 2022 saw 51 units sold compared against March 2021 when 90 units were sold for a decline of 49.3 percent. For further comparison, in February of 2022, 167 units were sold.
Overall, total farm tractor sales for March 2022 were 2,321—March 2021 sales were at 2,447 units, which is down by 5.1 percent. In the year-to-year comparison, 2022 numbers are down by 0.7 percent at 5,754 units sold compared against 2021 with 5,796 units sold.
In a look at self-prop combine units, only 60 were sold in March 2022 versus 95 in March 2021, a decline of 36.8 percent. Year-to-date sales follow similar numbers with 2022 sales coming in at 139 units versus 2021 sales at 218 units for a decline of 36.2 percent.
UNITED STATES
Sales in the United States also took a hit in March of 2022, excluding 100+HP 2WD tractors where it showed 7.0 percent growth in 2022 with 1,985 units sold versus March 2021’s 1,855 units sold.
A Year-to-date comparison of 100+HP units sold through March of 2022 shows 4,966 units sold versus 2021’s 4,396 units sold for a positive showing of 13 percent growth.
But, US sales across the board were down. The total of 2WD farm tractors sold in March 2022 was at 24,516 units versus March 2021 at 31,125 units—a decline of 21.2 percent. Year-to-date data stands at 57,746 units sold in 2022 versus 62,755 units sold in 2021, a decrease of 8.0 percent.
Sales of 4WD tractors in the US also took a tumble, but not as badly as the overall numbers of its 2WD brethren: March 2022 had 199 units sold versus March 2021 at 203 units—a drop of 2.0 percent. The year-to-date data shows a drop of 0.7 percent 596 units in 2022 versus 600 units in 2021.
The combined data for all US tractors was down 21.1 percent in a comparison of March 2022 data (24,715 units sold) versus March 2021 numbers (31,328 units sold). In the year-to-date comparison, total farm tractor sales were down in 2022 by 7.9 percent—2022 @ 58,342 units sold versus 2021 @ 63,355 units sold.
Combines in the US fared poorly as well with double digit losses. March 2022 sales were at 343 units against March 2021 sales of 382 units for a loss of 10.2 percent. Year-to-date numbers were at 748 units sold in 2022 against 926 units sold in 2021 for a drop of 19.2 percent.
ANALYSIS
Although February sales are usually higher than March sales as the planting season approaches, with fewer farmers wanting to wait to get their hands on the equipment, there are possible mitigating factors for the overall decline of sales in the Canadian and US markets as of March 2022.
Supply chain issues may be a reason, as farmers await delivery of the specific tractor they want. Or 2021 saw more stimulus cheques due to Covid-19 relief passed around that farmers took advantage of. The spectre of increased overall fertilizer prices may also play into declining sales with farmers having less money to spend on a luxury like a new tractor when the necessity of fertilizer volume must still be paid for.
Or, it’s just one month.
AEM is the leading organization in North America advancing construction and agriculture equipment manufacturers and their value chain partners in the global marketplace. More information available at https://www.aem.org,