May 2021 U.S. Farm Tractor Sales Show Small Blip While Canada Growth Remains Strong (Chip Shortage Creating Chaos)
May 2021 U.S. Farm Tractor Sales Show Small Blip, Canada Growth Remains Strong, and (Microchip Shortage Is Creating Supply Chain Chaos)
A slowdown in the sales of sub-40 horsepower units pulls total U.S. total farm tractor sales negative, while all other segments and Canada continue strong growth according to the latest data from the Association of Equipment Manufacturers (AEM).
U.S. total farm tractor sales fell 3.9% in May compared to 2020, marking the first overall negative result in a year, while U.S. self-propelled combine sales climbed a healthy 33.2%. Only the sub-40 horsepower segment saw a decline in year-over-year sales, falling 8.9%, but that was enough to bring a negative result to total farm tractor unit sales. All other segments were positive, with the biggest gains in the articulated 4WD segment, up 62.2% to 253 units sold. The midsize 40-100 horsepower units were up 6.7%, and the 100+ horsepower 2WD tractors up 28.6%. Year to date farm tractor sales remain up 25.8% and combines up 13.1%.
For Canada, May monthly tractor and combine sales were positive across all segments, with the biggest growth in combine harvesters, up 165.9% to 109 units sold, while total farm tractor sales were up 22.7% to 3,433 units sold.
Tractor microchip shortages are now causing massive supply chain delays and will likely cause equipment and parts to disappear from dealer lots as well as cause a massive increase in pricing.
Stay tuned for more.
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