The Market For Agricultural Equipment In The USA
16 November 2020
At the EIMA Digital Preview 2020, the Italian Trade and Investment Agency, ICE, organized a meeting focused on the North American market for agricultural equipment with the participation of the director of ICE in Huston, USA, Antonietta Baccanari.
Baccanari said that the United States of America is the leading nation for agricultural machinery in terms of quality of technologies, and it represents one of the reference markets in terms of sales value. In 2019, she said, the sales of tractors and self-propelled vehicles reached $11.9 billion with a growth of 5% compared to 2018, while equipment sales reached $5.1 billion (-1.8%). In 2019 the average investment in agricultural machinery exceeded $8400 per farm and 2020 should see further growth.
ICE reported that, according to data from AEM (the U.S. Association of Equipment Manufacturers), between January and October 2020 sales of tractors in the US exceeded 247 000 units (15% ahead of the same period last year) while combines totaled 4333 units (up 5.5%).
“In these months of global crisis the US market has benefited from federal aid for $37 billion (a 68% increase from 2019), which has increased the spending capacity of farms. The flywheel effect should also continue in 2021,” said Baccanari. According to the vast majority of US dealers the value of sales should remain stable or grow further compared to 2020.
Italian manufacturers are already present in the USA with significant export volumes: with €486 million in 2019 alone, the United States is the third highest destination market for Italian exports of agricultural machinery.