Farm machinery sales “surged” during July, even though the COVID-19 pandemic has put a damper on the Canadian economy and the outlook for farm receipts is gloomy.
The manufacturers’ association reports sales to the end of July were 4.8 per cent greater than the same time last year, but it’s the small stuff that’s driving that increase. Sales of the bigger tractors and combines are down.
Joy Andejume, economist with Farm Credit Canada, predicts that cash receipts will decline by 3.4 per cent this year, the largest decline since 2013..
Sales of utility tractor, representing nearly 70 per cent of total tractor sales, have increased by 12.3 per cent..
Sales of tractors 40 to 100 HP have remained unchanged, and 100+ HP has declined by 21.1 per cent.
Large four-wheel-drive tractors and combine sales have declined by 12.4 and 16.8 per cent respectively.
