U.S. retail sales of self-propelled combines were up significantly in January, showing a year-over-year increase of 21.4%, according to the Association of Equipment Manufacturers (AEM), the leading trade organization for off-road equipment manufacturers and suppliers.

Sales of smaller-than 40 hp tractors showed positive growth, with 5,354 units sold in January, a year-over-year increase of 13%. Sales of 40-100 hp tractors, however, decreased for the third consecutive month, and sales of larger-than 100 hp two-wheel drive tractors and four-wheel drive tractors also decreased.

Source: AEM

“We’re seeing some bright spots in the data from January sales, and our members tell us they are gearing up efficiency and are better prepared to meet the challenges of this new normal than they were 12 months ago,” Charlie O’Brien, AEM senior vice president, said.

The U.S. Department of Agriculture recently announced that 2016 net cash farm income is expected to be down for the third consecutive year. While the decline will be only 2.5%, O’Brien said this indicates stabilization in comparison to the more than 30% drop last year.

“While this deterioration in farm economics will undoubtedly affect our industry, there is still some hope that production ag might get a boost from an extended Section 179,” O’Brien said.