Healthy tractor sales mean healthy ag economy

Tractor sales are an indicator of the health of the agricultural economy and in Canada tractor sales were strong in 2020.

According to the latest numbers (up to November 2020) from the Association of Equipment Manufacturers, overall tractor sales in 2020 were up by about 2,000 units, roughly nine per cent over 2019.

Most of that growth, however, was in small tractors under 40 horsepower, which saw a sales increase of about 16 per cent. Mid-sized tractors with 40-100 hp also saw growth, though just shy of four per cent.

But sales fell for the largest tractors. Equipment with 100 hp or more saw sales fall, dropping by almost 13 per cent.

Overall sales were actually down at the beginning of 2020 but soon began to climb, peaking as they always do in June. Annual sales were well above the five-year average at just shy of 3,500 units. The vast majority of tractors sold in Canada every year are two-wheel drive tractors.

Self-propelled combines, a much larger market than four-wheel drive tractors but still much smaller than two-wheel drive tractors, saw sales decline. The 1,400 units sold in 2019 fell to about 1,200 in 2020, a drop of about 11 per cent.