North American Farm Tractor Inventory Shortage Is Worse Than Ever While Sales Plummet in June
TRACTOR AND MICROCHIP SHORTAGE IS A MASSIVE DISASTER.
Bryce Meehan, Team Tractor Ranch Sales Manager says, "It's bad. Worse than bad. Thankfully, we still have some tractors. All our competitors in the area are already depleted."
Here's more on the story of the tractor and microchip shortage and why you need to act now if you need any equipment...
Smaller tractors led declines in U.S. and Canada farm tractor unit sales while overall tractor inventories are down more than 40 percent year-over-year according to the latest data from the Association of Equipment Manufacturers (AEM).
U.S. total farm tractor sales fell 12.7 percent in June compared to 2020, the second overall negative result in a year, while U.S. self-propelled combine sales rose 4.1 percent. The sub-40hp segment led the decline, falling 18.4 percent, with a small decline in the mid-size 41-100 hp segment, down 3.1 percent. All other segments were positive, with articulated 4WD segment leading the way for the second straight month by more than doubling, up 141.8 percent to 266 units sold. The 100+hp 2WD segment also grew 24.8 percent. Year to date farm tractor sales remain up 16.7 percent and combines up 11 percent.
For Canada, June monthly tractor and combine sales were a mixed bag, declining in the sub-40hp and self-propelled combine segments, while growing everywhere else, with the biggest growth in 100+hp 2WD units, up 69.8 percent to 343 units sold, while total farm tractor sales were down slightly 3 percent to 3,217 units sold.
Available inventories may explain some of the changes in sales, as U.S. total farm tractor inventory (71,035) is 41.3 percent below levels in June 2020 (121,169), while Canadian inventory is down 33.2 percent over that same time (9,535 in 2021 vs 14,288 in 2020).
According to Bryce Meehan, "If you need a tractor, it is slim pickings. At the very least, you need to get on the backorder list right away."
Bryce Meehan, our resident national tractor sales expert, is available for further comment at Team Tractor Ranch anytime.
If you need any further help or have any questions about the tractor and microchip shortage, tractors, implements, or anything else equipment-related, please contact your dealer, local mechanic, or call us at 602-734-9944. Please ask about our current new and used tractor supply.
If you are looking for old, vintage, classic, or new tractor parts, send us a part request.
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