United States Agricultural Tractor Market Size

United States Agricultural Tractors Market Analysis

The United States agricultural tractor machinery market is set to grow at a CAGR of 3.8% during the forecast period.

• Agriculture is a major occupation in the United States, where mechanization of farming is considered an important reason for increased productivity, sales, and export. Also, the shorter replacement cycles of 9 years in advanced economies, like the United States, increase the demand for new tractors and drive the market.
• In addition, the farmers in the country have been able to avail themselves of timely subsidies on the purchases of agricultural tractors. This, in turn, has helped even small-scale farmers to invest in agricultural equipment, like tractors, in the country.
• According to data from the Quarterly Census of Employment and Wages (QCEW), wage and salary employment in agriculture (measured as the annual average number of full- and part-time jobs)-including support industries such as farm labor contracting-stabilized in the 2000s and has been on a gradual upward trend since 2010, rising from 1.07 million in 2010 to 1.16 million in 2020, a gain of 9 percent. Thus, the growing wages of farm labor are further propelling the farmers toward adopting agricultural equipment, like tractors, and boosting the market's growth.
• Some of the players in the country are involved in research and development and the launch of advanced tractors in the market. For instance, in 2021, players concentrated on producing fully electric and driver-optional tractors in the country. These tractors are being funded through the United States Department of Agriculture's (USDA) Conservation Innovation Grant program to automate specific blueberry field maintenance tasks, reducing the use of diesel fuels and enhancing farming productivity.