Most Tractors Sold - Fewest in Inventory, a Mess for Buyers!

Most Tractors Sold - Fewest in Inventory, a Mess for Buyers!

The final tractor sales numbers for 2021 are in and it was an amazing year. In the U.S. last year there were 215,288 tractors sold under 40 horsepower. That's the most ever, and up 8.9% from 2020's record pace. That's all according to data from the Association of Equipment Manufacturer's, the organization that tracks sales figures.

At the same time, inventory levels are low. On the first day of January of this year, the U.S. had an inventory of 49,288 tractors. That's down from 55,331 the prior year and 94,482 1/1/20. So, the demand is at an all-time high and supplies are lower than they should be.

What happened? The number of people moving to small acreages in the country was brisk already, but has accelerated, and the small tractor market continued to grow last year. Covid caused a lot of people to abandon city living and move to the wide open spaces, because they could work remotely or retire. They were out in record numbers shopping for small tractors to use on their estates at the same time the supply chain interruptions caused by the pandemic were slowing production of new machines

That leaves buyers in a lurch and there's currently no end in sight. Barring a sudden drop in demand brought on by inflation fears and higher prices, or a sudden influx of inventory, customers are going to be experiencing difficulties finding the exact tractor to meet their needs this year and will have limited abilities to negotiate. It's a seller's market.

Here are AEM's numbers of tractors and combines sold last year in the U.S., including all brands:

Under 40 hp: 215,288
40-100 hp: 75,311
100+ hp: 23,762
Articulated: 3,536
Combines: 6,272

Here are sales totals for under 40 hp tractors going back to 2018:

2018: 155,269
2019: 163,298
2020: 197,772
2021: 215,288

Bottom line is, demand is high, inventory is low, so it's a tough time to be a tractor buyer. Industry experts I talk to think it'll be a while before this trend changes.

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