The growing price of farm equipment is not dissuading farmers from buying new machinery, according to the latest data from the Association of Equipment Managers (AEM).
Unit sales of four-wheel-drive ag tractors grew in both Canada and the U.S. in November, continuing a strong final quarter for 2023. In Canada, four-wheel-drive unit sales grew 84.8 per cent year-over-year in November and 41.5 percent year-to-date over 2023.
U.S. sales of four-wheel-drive tractors in November were even more dramatic, with a 72.6 per cent increase year-over-year and a 38.2 per cent year-to-date gain.
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These figures are unusual for this time of year, wrote Curt Blades, senior vice-president, industry sectors and product leadership with AEM, in a news release.
“November is historically a slow month for tractor and combine sales,” he said.
“We are happy to see the year-to-date sale’s strength in the larger equipment market and remain optimistic for the long-term.”
Overall Canadian tractor sales were more moderate, finishing November up 1.0 percent. Combines were down for the month, falling 12.8 per cent.
On the U.S, side, overall U.S. tractor sales are down 4.7 per cent compared to sales in November 2022. Combine sales finished 11.3 percent below this time last year.
In October, the AEM reported Canadian sales of tractors above 100 horsepower were up 37.4 per cent compared to the same month in 2022. Four-wheel drive tractor sales were up 141 per cent in October, compared to the same month in 2022.
This isn’t because farm machinery has dropped in price. It’s done quite the opposite, Scott Garvey reported in Grainews earlier this month.
As per the Manitoba government’s most recent cost of production guide, Medium (160 to 224 horsepower) MFWD tractor prices have increased 35 per cent; large four-wheel drives (550+ horsepower), up 28 per cent; Class 9 combines, up 27 per cent; high-clearance sprayers, up 31 per cent; and air drills, up 62 per cent, Garvey wrote.
This makes considerations of whether to replace old equipment all the more complex, he added.
High equipment sales could be attributed to production backlogs in recent years, which meant farmers were unable to replace equipment earlier.
Full equipment sales reports can be found in the Market Data section of the AEM website under Ag Tractor and Combine Reports.
— Jeff Melchior reports for Alberta Farmer Express from Edmonton.
