Does Tractor Supply Sell Tractors in 2024? The Full Story
With over $12 billion in net sales in 2021, Tractor Supply Company has grown from its origins selling tractor parts by mail order to be largest rural lifestyle retailer. But ironically, they do not sell full-size tractors for farming purposes today.
As an expert analyst in the retail sector, I delved into the history and transformation of this iconic brand to provide a comprehensive perspective. Read on for insights into what products they do sell now and why you won‘t find tractors at Tractor Supply stores across the country.
Origins as a Tractor Parts Supplier
Tractor Supply Company was founded in Minot, North Dakota in 1938 as a mail order tractor parts business for the farming and rural community. This originated from founder Charles E. Schmidt seeing the need for a reliable source for replacement tractor parts.
In its first year, the catalog mail order business generated $39,000 in sales. And over time, Tractor Supply expanded its product selection to serve a wider customer base for rural parts, equipment and accessories.
Market Size for Full-Size Farm Tractors
The market for agriculture machinery including tractors represents over $75 billion in North America, according to recent market research. The major equipment makers like John Deere have extensive dealer networks aligned to sell multi-hundred thousand dollar tractors along with accompanying service and parts.
Given the expense and specialization of full-size tractors for crops and livestock operations, it is no surprise specialty dealers command this product category.
How Tractor Supply Business Model Evolved
As a retailer catering to hobby farmers, homesteaders and rural property owners, Tractor Supply emerged to have broader appeal beyond just commercial tractor users.
Given big box competition and growth opportunities into rural lifestyle, Tractor Supply strategically shifted to serve recreational farmers, ranchers and owners of small acreages vs primarily production-scale agriculture.
Today over 75% of sales come from homeowners, not full-time farmers. Carrying expensive farm tractors did not align with serving rural consumers mainly doing small projects, maintaining animals or property upkeep.
| Customer Segment | Est. Percent of Sales |
|---|---|
| Homeowners / Hobbyists | 75% |
| Commercial Farmers | 25% |
What Does Tractor Supply Sell Now?
While no longer focused on agriculture machinery, Tractor Supply does proudly serve a wide range of rural lifestyle customers. In 2021 top selling product categories included:
- Pet supplies: $2.56 billion
- Seasonal items like heating: $1.47 billion
- Hardware / Tools: $1.36 billion
- Livestock feed and supplies: $1.34 billion
- Lawn & Garden supplies: $1.25 billion
This ranged from animal feed, propane tanks, and work boots to riding mowers, truck accessories, and pet medicines. Store brands under Tractor Supply‘s ownership represent about 1/3 of total sales.
Riding Mowers Surpass Agriculture Tractor Sales
Ironically, the riding mowers and lawn tractors Tractor Supply sells today far outnumber sales if they did carry agriculture tractors.
According to Tractor Supply‘s 2021 annual report:
Riding mowers grew over 20% representing nearly $250 million in sales. Both gas-powered and electric riding mowers are stocked from leading brands like Cub Cadet, TroyBilt, Husqvarna and Craftsman.
Based on these statistics, Tractor Supply actually sells thousands more ride-on mowers helping maintain rural properties than it would by carrying commercial farm tractors.
Conclusion
Tractor Supply Company built a brand around supplying tractor parts and being essential for rural life in America. And while they do not sell agriculture machinery today, they proudly serve a new generation of rural landowners and hobby farmers across the country.
Ride-on mowers, livestock feed, tools or heating fuel – Tractor Supply carries the products homesteaders need. Just don’t expect to pull a multi-ton John Deere tractor out of your local store parking lot.
