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Combine Sales Bright Spot In Down Machinery Market
A recent report released by the Association of Equipment Manufacturers (AEM) shows self-propelled combine sales were up 21.4% in the U.S. compared to last year at this time.
Sales of less than 40 hp. tractors also saw positive growth with an increase of 13% year over year.
“We’re seeing some bright spots in the data from January sales, and our members tell us they are gearing up efficiency and are better prepared to meet the challenges of this new normal than they were 12 months ago,” says Charlie O’Brien, AEM senior vice president. “In addition, last week the USDA announced that 2016 net cash farm income is expected to be down for the third consecutive year, though the decline will only be 2.5%, which indicates stabilization in comparison to the more than 30% drop last year. While this deterioration in farm economics will undoubtedly affect our industry, there is still some hope that production ag might get a boost from an extended Section 179.”
Sales of 40 to 100 hp. tractors didn't fair as well and decreased (-5.7%) for the third consecutive month. Sales of larger than 100HP 2WD tractors (-38.5%) and 4WD (-9.3%) tractors also dipped.