First rise in US tractor sales in year lifts farm sector hopes
Sales of tractors rose 4.1% in September
A small bump in US tractor sales is raising hopes the farm-machinery sector may be starting to turn around after years of tough conditions.
Sales of tractors rose 4.1% in September, the first increase in 13 months, according to data from the Association of Equipment Manufacturers, a trade group representing companies in agriculture, forestry, construction, utility and mining.
Tractor sales improved despite low crop prices leaving growers with less to spend on new equipment. US President Donald Trump’s tariffs have helped to shut off demand for commodities such as soybeans, cotton and sorghum from the world’s top commodities importer China while tariffs on steel and aluminum raise costs to build machines in the US.
“After challenging months of continued sales declines in the US market, this modest increase is certainly encouraging,” Curt Blades, senior vice president at AEM, said in a Monday release. “Although there is some uncertainty and volatility in the marketplace, we are optimistic this positive trend will continue, particularly as the harvest season progresses.”
Manufacturers including industry leader Deere & Co. have said 2025 would be the trough, or low point, in the cycle before a recovery begins to take shape next year. Still, even with the increase in tractors, sales of the combines used to harvest fields fell about 22% in September, according to AEM.
— By Michael Hirtzer (Bloomberg)
