Tractor sales rise 4% for 2014

UK tractor registrations totalled 1,144 units for June, which was a 1.4% rise on the same month a year ago. That means the half-year total was 6,942 – an increase of 4% on 2013, according to the Agricultural Engineers Association.
As usual, average power output has continued its march upwards by reaching 151.6hp for the first six months of 2014, which equates to a 2.6% increase on a year earlier.
Despite the increase in sales, most manufacturers expect a flat second half of the year because the underlying farming conditions are uncertain. For the arable sector – which is the biggest buyer of new farm machinery – crop prices have been sliding away and are now near the cost of production for many. Yields look promising, though, so it may go some way to offsetting the lower prices.
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The dairy sector is also seeing milk price reductions but until now these have been compensated by lower feed and fertiliser costs, while the beef sector has seen an alarming slide in prices. Added to this, farmers have to take into account new responsibilities associated with the greening element of the CAP reforms. All this suggests there is little clear direction in the market as yet.