The current Associated Equipment Manufacturers report says tractor sales are down 14.1% in July compared to the year before and are down 11.9% year-to-date.
Sales are down reflecting lower crop prices including the big two – corn and soybeans.Corn futures that were at $6 a bushel last summer are down to $3.90 today.
That means incomes are down. By the end of 2024,USDA expects farm income will have decreased by more than 25% from 2023.
News reports say tractor giant John Deere is facing a backlash after announcing it was laying off hundreds of workers across the Midwest — even as it continues to operate a manufacturing hub in Mexico.
The Illinois-based company, which is the world’s largest seller of large tractors and other farm equipment, informed hundreds of employees in Iowa last month that they were out of a job.
The downturn is affecting used equipment as well.Another report says “With inventories of new equipment filling lots while consumer demand is down, dealers are taking a cautious approach with used machinery.