U.S. sales of 4-wheel-drive tractors increased by 18.6 percent in July 2024 compared to the same month in 2023 and are up 5.2 percent year-to-date, according to the latest data from the Association of Equipment Manufacturers.
Overall sales of agricultural tractors in the U.S. declined by 14.1 percent in July 2024 compared to the previous year, with year-to-date sales down 11.9 percent. Meanwhile, combine sales saw a 19.1 percent drop in July compared to 2023 and are down 17.6 percent year-to-date.
“July’s increase in 4-wheel-drive agricultural tractors offers some optimism following the sales slowdown in May and June of 2024,” said AEM Senior Vice President Curt Blades. “However, the subcompact tractor market continues to show weakness after several years of strong performance. The challenges in the market are multifaceted, and that’s why AEM is advocating for the swift passage of a farm bill to provide farmers with the certainty they need to make these purchases.”
In Canada, sales of 4-wheel-drive tractors surged by 88.7 percent in July 2024 compared to the same month in 2023 and are up 17 percent year-to-date. However, overall sales of agricultural tractors in Canada decreased by 13 percent in July compared to the previous year, with year-to-date sales down 15.5 percent.
In July, all three broad-based measures of farmer sentiment saw improvement. The Purdue University/CME Group Ag Economy Barometer index rose by 8 points to 113, the Index of Current Conditions increased by 10 points to 100, and the Index of Future Expectations climbed 7 points to 119.
In the past three months, John Deere has laid off more than 1,000 employees company-wide. This includes approximately 345 production employees at its Waterloo, Iowa, facilities and an additional 170 across Waterloo, Johnston, and Dubuque. Deere officials attribute these layoffs to decreased customer demand and rising operating costs.
“According to our second-quarter earnings call, industry sales are projected to decline by 20 percent from 2023 to 2024,” reads the Deere website’s statement made on July 23. “Despite the current drop in customer demand, John Deere remains committed to U.S.-based manufacturing, employing about 30,000 people in over 60 U.S.-based facilities across 16 states.”
»Related: John Deere announces 600 layoffs amid falling demand
