MILWAUKEE, Wisc. (RFD NEWS) — U.S. farm machinery sales weakened further at the end of 2025, underscoring ongoing caution among producers as margins remain tight and replacement cycles are extended. New data from the Association of Equipment Manufacturers (AEM) show December tractor and combine sales declined year over year, reflecting restrained capital spending across much of the farm economy.
U.S. sales of agricultural tractors fell 14.8 percent in December compared with the same month in 2024, while combine sales declined 4.3 percent. The pullback was broad-based across horsepower categories. Sales of tractors under 40 horsepower dropped nearly 19 percent, mid-range tractors declined almost 5 percent, and units above 100 horsepower fell more than 18 percent. Four-wheel-drive tractor sales posted the steepest decline, down 31 percent from a year earlier.
Canadian markets showed a mixed picture. Tractor sales fell 13.7 percent year over year, mirroring weakness in the U.S. However, Canadian combine sales surged 26.1 percent, suggesting regional differences in replacement needs and harvest conditions.
Full-year figures point to a slower equipment cycle. U.S. tractor sales for 2025 finished nearly 10 percent below 2024 levels, while combine sales fell more than 35 percent year to date. Elevated equipment prices, higher interest rates, and softer commodity margins continue to weigh on purchasing decisions.
AEM notes the data reflect preliminary retail sales reported by member companies and serve as a barometer of producer confidence heading into 2026.
Farm-Level Takeaway: Soft equipment sales signal cautious farm spending as producers prioritize cash flow over expansion.
Tony St. James, RFD NEWS Markets Specialist
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