Industry report shows only 11% of tractors used on U.S. farms have been replaced since 2007.
Ag Equipment Intelligence (AEI), a monthly newsletter for the farm equipment industry, recently interviewed Ann Duignan, machinery analyst for JP Morgan, on machinery-buying trends in the U.S. Duignan analyzed USDA Census data from the most recent study conducted in 2007 and shared the following findings with AEI:
- There were 4.4 million tractors in use on U.S farms in 2007, down from 5% in 2002. Of the 4.4 million, 1.1 million, or 25%, of these units were over 100 hp. Comparatively, 29% were less than 40 hp and 46% were 40 to 99 hp.
- Of the 1.1 million 100-hp-plus tractors in use, 12% were produced in the 2002 to 2007 time frame, Duignan says. This percentage indicates that the vast majority of tractors in use in 2007 were more than five years old.
- In 2007, there were about 2.2 million farms, and an average of about 2 tractors per farm. Within the total farms, 986,000 were crop farms and these farms owned 2.4 million tractors.
- In 2007, 964,000 livestock producers owned 2 million tractors, 82% of which were less than 100 hp. Crop farms, in comparison, use higher-horsepower units, and 31% of their tractors were over 100 hp.
- Between 2007 and 2010, total new tractor sales in the U.S. were 503,000 units, Duignan estimates. She says this indicates that only 11% of the total fleet has been replaced since 2007.
- Between 2008 and 2010, U.S. sales of over-100-hp units were 76,000 cumulatively, and between 2002 and 2010, sales of these tractors were 181,000, Duignan says. “This implies that only 16% of the fleet has been replaced between 2002 and 2010.”