Compact tractors and 40-99 horsepower tractors sales exceeded expectations in May, while 100+ horsepower tractors, 4WD tractors and combine sales were below expectations.
Back in February, the U.S. Department of Agriculture (USDA) was projecting a $3.1 billion increase in net farm income this year. Then COVID-19 emerged. Now, a private forecast from the Food & Agriculture Policy Research Institute estimates farm income to drop roughly 11% from the USDA's original projection.
Returning to the compact tractor market in North America last year helped Doosan Bobcat Inc., record a 5.4% increase in fourth quarter 2019 sales and contributed to a 7.2% rise in full year sales to $3.8 billion.
The number of new jobs developed in this economy and the growth of wages has provided many with not only more disposable income but growing retirement accounts. The strength of the smaller horsepower tractor markets is a direct result of this powerful economic engine and should remain so in 2020.
Czech tractor maker Zetor aims to rebuild its presence in India through a cooperation agreement with local manufacturer VST Tillers Tractors to jointly develop a new model, primarily for sale in India but also for export to selected markets.
Tractor sales in South Africa plummeted last year as initial uncertainty over harvest prospects in summer cropping areas, followed by drought conditions that held back timely planting, had a profound impact on grower investment sentiment.
Retail sales of ag equipment were below December's monthly forecast in all categories except for over 100 horsepower tractors, which exceeded the December forecast by 37 units.
Retail sales of ag equipment were below November's monthly forecast in all categories except for over 100 horsepower tractors, which exceeded the November forecast by 36 units.
GMG uses historic data models that track net farm income, net farm cash income, commodity prices, currency exchange rates, worldwide agricultural market data and other factors that influence the purchase of tractors and combines in the U.S.
Total tractor sales in October fell about 8%, with utility tractors (40-100 horsepower) showing the only growth at up 6%. Compact tractor (under 40 horsepower) sales fell 11% last month and high horsepower tractors (over 100 horsepower) fell 18%.
Each monthly issue of Ag Equipment Intelligence is like getting one-on-one personal advice from the world's most trusted ag equipment industry experts. Advice that hasn't been watered down or distorted by outside influence, providing the latest and most insightful farm equipment analysis. AEI explores where the ag equipment industry is going — not just where it's been. No filler. No bias. No conflict of interest. You can access the PDF issue archive by clicking here.
In this episode of On the Record, brought to you by Associated Equipment Distributors, Deere Director of Investor Relations Josh Beal told JP Morgan analysts that the OEM is confident it will be “producing to demand” in fiscal year 2025.