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
Arizona producers are proving that desert farming and water conservation can coexist through technology, reuse, and efficiency — reinforcing both food security and environmental stewardship.
October 31, 2025 12:39 PM
·
Caleb Ragland, president of the American Soybean Association (ASA), shares his reaction to news of soybean sales to China, which is considered both “welcome news” and a return to near-normal trade relations.
October 31, 2025 12:26 PM
·
Rabobank’s outlook signals a tightening margin environment, emphasizing the need for cost control, trade stability, and clearer policy signals heading into 2026.
October 31, 2025 11:44 AM
·
U.S. Senator Roger Marshall (R-KS) shares his perspective on the U.S.-China trade developments and their potential impact on American producers, farmers, and ranchers.
October 30, 2025 12:56 PM
·
Prepare for softer milk checks into winter, watch cull-cow values and timing, and stress-test cash flow as product prices recalibrate.
October 29, 2025 03:11 PM
·
Dr. Ashley Johnson, with the National Pork Producers Council (NPPC), joins us to share the sector’s perspective on new FDA initiatives targeting ultra-processed foods.
October 29, 2025 01:52 PM
·
Cattle markets are collapsing this week, and analysts say that several factors are at play. Consumer beef prices also remain near all-time highs, threatening long-term demand.
October 29, 2025 12:58 PM
·
Tune in on Wednesday, November 5, 2025
7:30 PM ET | 6:30 PM CT | 5:30 PM MT | 4:30 PM PT
October 28, 2025 05:29 PM
Alan Bjerga, Senior Vice President of Communications with the National Milk Producers Federation (NMPF), shares updates and resources available to dairy producers.
October 28, 2025 02:03 PM
·
