Compact Tractor Sales off 20%

HayDR · Mar 13, 2007

Compact tractor sales off 20% 2nd month in a row. With dealer inventories high, look for manufactures to offer extended financing and rebates. Some of the decline might be that customers are now purchasing larger compact tractors 40 HP and above. The tractors 40 HP and above fall into the utility market segment even if the tractors have a smaller frame than the traditional size utility tractor.

The good news is the both utility and row crop tractors sales are increasing. AEM | Industry Trends - U.S. Ag Flash Reports: February 2007 Flash Report<br />U.S. Unit Retail Sales

Hard · Mar 13, 2007

CCI, you may have a good point. I think it also may be the home refinance boom is coming to a close and people are not feeling as "house rich" as they once were. Home values stagnating and in many markets decreasing, reducing the equity in homes.

UncleBuck01 · Mar 13, 2007

Hard said:
CCI, you may have a good point. I think it also may be the home refinance boom is coming to a close and people are not feeling as "house rich" as they once were. Home values stagnating and in many markets decreasing, reducing the equity in homes.

What seems to be happening in this area, the baby boomers are nearing retirement, picking up large parcels of land, building huge houses, with the intentions of leaving the suburbs and their 3+ acre homesteads. They want/need that bigger tractor

JDeereman · Mar 13, 2007

UncleBuck01 said:
What seems to be happening in this area, the baby boomers are nearing retirement, picking up large parcels of land, building huge houses, with the intentions of leaving the suburbs and their 3+ acre homesteads. They want/need that bigger tractor

I think you hit that one pretty close to the head Uncle Buck. Up here in Maine, we are seeing lots of retired folks from the big city buying land and trying to build their retirement dream home... or at least their summer retirement dream home! Don't know how much land they had back home... if any... but up here, except right on the coast, the sale of a New York or Boston home can still buy a very pretty (and large) piece of property.

Theo