Reduced commodity prices and lower farm incomes continued to impact new tractor and combine purchases in September, says AEM Senior Vice President Charlie O’Brien.
However, smaller horsepower tractors sales remained at very good levels year-to-date, he said, with many going into small-acre farms and the livestock sector where economic conditions have been more favorable.
He said that while U.S. farmers’ balance sheets still look healthy, net farm income is driving very conservative purchasing behavior.
“The 2015 forecast for net farm income is the lowest since 2006 and a drop of nearly 53 percent from the record high in 2013,” he noted. “If we personalize this and see our personal income cut 53 percent over a couple of years, we would need to adjust our spending levels.”
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About the Report
AEM offers monthly Ag Tractor and Combine Reports which are available approximately the 10th day of each month and consist of aggregated estimates by companies and the previous month’s sales for tractors and combines.
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