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
Improved export prospects and higher crop prices strengthened future expectations despite continued caution about spending.
December 03, 2025 01:52 PM
·
While the agriculture industry hoped details on proposed “bridge” payments for farmers would be released this week, Ag Secretary Brook Rollins said the USDA is still working with the White House on the finer points.
December 03, 2025 01:36 PM
·
Federal lawyers submitted a brief this week backing Bayer’s argument that federal laws governing herbicides like Roundup should prevent lawsuits over the popular chemical.
December 03, 2025 12:08 PM
·
December 02, 2025 11:38 AM
Strong demand supports sweet potatoes, but grading challenges and rising costs weigh on returns for Southeastern growers.
December 02, 2025 06:17 AM
·
Pressure on grain storage capacity and stronger export positioning are pushing more grain onto railroads, highways, and river systems as logistics become a key bottleneck this fall.
December 01, 2025 05:09 PM
·
The Cotton-4 are pushing hard for new value chain investments. Still, many U.S. cotton producers face unsustainable losses, and weakened regional textile capacity threatens the survival of the Carolina “dirt-to-shirt” supply chain.
December 01, 2025 05:03 PM
·
Late harvest and tight supplies shape crop progress and agribusiness this week. Here is a regional snapshot of harvest pace, crop conditions, logistics, and livestock economics across U.S. agriculture for the week of Dec. 1, 2025.
December 01, 2025 04:22 PM
·
Cargill’s commitment to keep plants open helps preserve competition as Tyson removes capacity amid historically tight cattle supplies.
December 01, 2025 03:55 PM
·
