Canadian farmers bought slightly fewer tractors this year than in 2024 while combine sales rose, statistics from the Association of Equipment Manufacturers show.
Year-to-date sales of tractors were down 0.3 per cent compared to 2024, while combine sales were up 1.6 per cent.
Total four-wheel drive tractors sales fell by 22.5 per cent. Total two-wheel drive tractor sales rose by 0.8 per cent.
In November, sales of two-wheel drive tractors under 40 horsepower were down 10.2 per cent compared to November of 2024 while sales of tractors with more than 100 horsepower were down 18.6 per cent. Sales of tractors with between 40 and 100 horsepower were up 11.8 per cent compared to the same month last year.
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Four-wheel drive tractor sales fell by 50.6 per cent compared to last November. Combine sales were up 25.6 per cent.
Canadian equipment sales fared better than U.S. sales. At the end of November, year-to-date sales of all tractors were down 9.7 per cent in the U.S. Combine sales were down 38.3 per cent.
Downward trend continues
Overall, farm equipment sales in both countries have been trending down in recent years.
In late 2023, Farm Credit Canada warned that the year’s robust sales were unlikely to continue. The farm lender said sales had been strong thanks to the resolution of pandemic-era supply chain issues and strong farm cash receipts. However, drought in Western Canada and softening commodity prices were likely to take their toll.
Sales declined in 2024 as predicted, and in November 2024, FCC again predicted a slump in 2025 as farmers faced low commodity prices and high equipment costs.
Tariff impacts
This was before U.S. President Donald Trump took office and announced sweeping tariffs — including on the imported steel and aluminum needed to build machinery.
In late November, farm equipment manufacturer Deere & Co said it expected tariff impacts on the company to come in around US$600 million (C$826.1 million). It predicted a pre-tax tariff hit of around US$1.2 billion (C$1.65 billion) in 2026.
Low crop prices and high production costs were prompting American farmers to put off purchases or opt for used equipment. Deere has considered production shifts, higher prices and widening its portfolio to used equipment.
CFRA Research analyst Jonathan Sakraida said he does not expect Deere to recover until fiscal 2027, adding that the company struggled to offset tariff impacts.
—With files from Reuters
