MILWAUKEE, Wis. – Sales in every category of farm equipment reported by the Association of Equipment Manufacturers (AEM) were down in the first quarter of 2024 compared to the same period a year ago.

Self-propelled combines fell 20.4 in the first three months of the year, and farm tractor sales dropped 13.3 percent. Two-wheel-drive tractors under 40 HP were down 17 percent, while those 40-100 HP decreased 8 percent, and those 100 HP or more dipped 4.2 percent.

Four-wheel-drive tractors were down 7.9 percent.

The only positive number in the April 12 report came in March sales of two-wheel-drive tractors 100 HP or more, which rose 3.2 percent over March 2023.

“Seeing the continued growth in 100-plus horsepower tractor sales is a welcome sight as 2024 progresses, despite the softness in other tractor sizes,” Curt Blades, AEM senior vice president, said in a release. “As we start the planting season, we remain optimistic for the future of the ag equipment market.”

Dealers are seeing AEM’s numbers borne out in fewer sales, Kim Rominger, president and CEO of the North American Equipment Dealers Association, told Farm World.

“Dealers are expecting a different year than last and anticipating sales overall being down,” he said. “Many are adjusting their sales forecasts in anticipation of lower sales this year.”

Year-to-date sales of farm tractors and combines are below last year’s pace, AEM said. In 2023, sales of self-propelled combines, four-wheel-drive and larger two-wheel-drive tractors were up over 2022, the organization said. Sales of smaller two-wheel-drive tractors were down, according to AEM.

Many factors are contributing to the slower sales, Rominger noted.

“All input costs from seed, fertilizer, fuel and interest rates are up,” he explained. “Also, last year the majority of the sales delayed due to the COVID period being finalized and inventory is now, for the most part, back to near normal. There is less uneasiness that equipment will not be available if needed at a later date. Inventory levels on dealer lots of both new and used equipment are growing.”

Rominger said he doesn’t know if farmers are opting to purchase used equipment instead of new, or if they’re just not purchasing equipment at all.

“Much of the large equipment was ordered last year to be delivered this year such as large, four-wheel-drive tractors and combines,” he noted. “I am not certain what farmers are thinking now but farmers are usually conservative and pay close attention to the economy. With interest rates and inflation rising, they may be trying to weather the storm, so to speak, and hang on to what they have.”

Sales of smaller farm tractors and equipment are dependent so much on the economy and housing starts, Rominger pointed out.

“Part-time farms or acreage owners are affected by many of the same costs as farmers relative to fuel and interest rates. When things are tight, they hang on to the equipment they have.

“With fewer housing starts, landscapers and builders do not purchase new equipment unless absolutely necessary. Equipment prices are also affected by inflation and are up as well.”

Rominger said he’s not aware of any problems dealers are having accessing parts or new equipment.

“The port in Baltimore handled a lot of farm equipment coming in from overseas. It is too early to tell if the channel being closed will impact on equipment or parts at this time. Dealer inventory levels have been growing so I would expect the effect would be minimal unless the closure is for an extended period of time.”

Other East Coast ports could be used to bring equipment into the country, he added.