Global Tractor Sales Decline Signals Challenging Year for Agriculture Industry

Last year was marked as particularly challenging for the agricultural industry, but a rise in milk prices and interest rate cuts may soon provide relief. Initial indicators suggest potential recuperation as December's tractor sales rose by 2.6% to 311, possibly signaling a positive trend for the first quarter of 2025. Although the total tractor sales figure for the year decreased fr om 3435 to 2806, there is optimism that these improvements can rejuvenate the sector.

The historical context is not overlooked by veterans who recall 1986 when the market fell to a low of just over 1100 units. Meanwhile, the Agricultural Engineers Association in the UK reported a significant drop in sales, down 13% to 10,241 tractors, marking the lowest registration figure since 1998. Comparatively, 2024 sales figures slightly undershoot other poor years such as 2015, 2016, and 2020.

Reflecting a similar trend, New Zealand saw a notable sales boost, climbing 14% to 791 units in 2023, which was 5% higher than the average of the past five years. December's boost raises hopes, though low returns and new inheritance tax changes might counter this upward trend.

In Europe, key markets such as Germany, France, and Italy experienced declines. German tractor sales dropped from 29,291 to 28,249 (-3.4%), while France saw a decrease from 26,161 to 23,576 (-8.4%). Italy witnessed the greatest fall, plunging from 17,613 to 15,448 tractors (-12.3%). Notably, Italy also reported a 32% reduction in combine harvesters and a 14.4% decrease in telehandlers.

In North America, US tractor sales diminished to 217,200 units in 2024 (-13.2%), with combine harvester sales dropping to 5,564 (-24.3%). Similar trends were observed in Canada, wh ere 2024 tractor sales were recorded at 23,444, down from 27,846 in 2023 (-15.8%).