Agricultural machinery manufacturers anticipate continued weakness in U.S. and Canadian tractor sales in 2010, according to the Association of Equipment Manufacturers’ annual outlook survey.
The recession, lower grain and livestock prices, weaker farm income and tighter agricultural credit contributed to the decline, AEM vice-president of agricultural services Charlie O’Brien said in a news release.
“The recession is expected to continue to drive negative growth rates in many equipment categories in 2010,” he said.
“However, it is important to keep in mind that the larger equipment has been coming off of some very good production years, specifically the 100 horsepower tractors, which were at a 25-year-high watermark in 2008.”
The declines for all sizes of two-wheel tractors are expected to be less steep this year than in 2009.
Double-digit decreases are expected for four-wheel-drive tractors, following flat business in 2009.
Combine sales are predicted to drop in the double digits for 2010 after 2009 sales growth.
Tractor sales are predicted to start rebounding through 2011 and 2012. Combine sales are expected to remain weak in 2011 and flat in 2012.
Other types of farm equipment such as forage harvesters, loaders, mowers and swathers are expected to flatten out this year and rise in 2011.
