High-horsepower tractors lose favour in squeezed arable sector

Sales of higher powered tractors have suffered the biggest drop in new registrations in the first three months of this year, reflecting the disproportionate squeeze on margins in the arable sector.

Recent figures from the Agricultural Engineers Association (AEA) showed that, from January to March, total new tractor registrations were down almost a quarter on year-ago levels at 2,228 machines – the lowest they have been for 24 years.

See also: Tractor registrations slump to 24-year low

This reflected in part the harsh economic times many farmers are facing, but also the lack of confidence as concerns about the withdrawal of subsidies and the threat of inheritance tax overshadow the industry.

Further analysis by the AEA reveals that high-horsepower tractors – typically favoured by arable farmers – have seen the greatest decline.

While all power bands have seen declines in registrations of more than 10%, those above 240hp are down by nearly 45% year on year.

Fendt 724 © James Andrews

“To some extent this reflects the lack of profitability in the arable sector,” said AEA economist Stephen Howarth.

“However, it is also the case that last year there were proportionately more registrations in the higher horsepower range – in part a catching up from the supply chain disruptions of previous years – so this category had further to fall.”

John Deere 6R 250 © John Deere

Regional split

The “livestock/arable split” is also apparent in the regional breakdown, with the smallest falls in new tractor registrations being seen in the livestock-dominated South West, North West and South East.

Yorkshire, the North East and the East Midlands saw the biggest declines regionally, where registrations reached only about half the numbers logged in the opening three months of 2024.

“East Yorkshire and the Vale of York are big arable areas, which probably accounts for this,” said Mr Howarth.