Sales of combines are a handy gauge for farmer optimism.
Farmers weren’t feeling it this past winter.
Canadian producers bought only 21 new combines in January. That’s down 83 per cent from January of 2024, when farmers purchased 123 self-propelled combines, says a sales report from the Association of Equipment Manufacturers (AEM).
Read Also
Agco settles legal dispute with TAFE
Agco and Tractors and Farm Equipment (TAFE) from India announced July 1 that they had settled their legal dispute, which began in 2024 over local ownership of the Massey Ferguson brand name and other concerns.
American sales data is similar. In January 2024, U.S. farmers bought 460 combines. This January, they only purchased 97.
In more hopeful news, Canadian sales of 4WD farm tractors climbed in January, going from 49 in January 2024 to 59 tractors this year.
Looking at the bigger picture, sales of farm tractors and combines have declined over the last year in North America. That trend may continue in 2025, the AEM said during a presentation at the Commodity Classic farm show March 3.
“AEM data show 2024 shipments of LHP and HHP (low and high HP) equipment have dropped year over year,” says an AEM summary of 2024.
Sales of low HP tractors have seen the steepest decline over the last couple of years. Shipments of higher horsepower tractors have also contracted, but not as much:
• As of December 2024, sales of LHP tractors were down 24 per cent year over year and 13 per cent below the five year average in the United States.
• For HHP, 2024 sales were similar to the five year average and 17 percent below year over year in the U.S.
• “That (high HP) market has been pretty stable over the last few years,” said Curt Blades, AEM senior vice-president of industry sectors.
“In 2023, we were trending above that line (the five year average)…. (But) in 2024, we were seeing that deceleration of that high HP tractor sales.”
The sales figures for combines followed a similar pattern.
Blades ended the AEM presentation with some key takeaway messages. Sluggish demand for ag equipment will likely persist in 2025 due to weaker grain prices, questions around biofuel policies and trade issues.
“In the ag market right now, there’s a lot of uncertainty,” he said.
