The Farmers Forum anticipates a slowdown in the Canadian farm equipment market for 2024, following a robust performance the previous year. Projections by Farm Credit Canada indicate a notable decline in combine harvester sales, with an expected drop of 20%, contrasting sharply with the nearly 4.9% increase seen in 2023. This year signals a shift towards a buyer's market for combines, with new unit inventories expected to surpass the five-year average.

Additionally, sales of used combines, headers, and grain carts are forecasted to dip below the five-year average, leading to price pressure as supply outweighs demand. On the other hand, sales of new 4WD tractors are predicted to remain strong, albeit slightly down by 2% from 2023, yet staying above the five-year average. Farm Credit Canada expects both new and used 4WD tractor inventories to stay low throughout 2024.

These market projections align with a broader economic trend in Canada, characterized by sluggish growth. S&P Global forecasts a mere 0.9% economic expansion for the country in the current year. Coupled with Canada's recent annual population growth of around 3%, this indicates a contraction in the economy on a per capita basis.

Source: Farmers Forum 2024