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
Sen. Roger Marshall, a founding member and chairman of the Make America Healthy Again caucus, joined us with his thoughts on the commission’s latest report and the key ag-related issues.
September 17, 2025 04:36 PM
·
The Fertilizer Research Act, reintroduced by Sens. Grassley, Ernst, and Baldwin, would direct the USDA to study and publish public reports on competition and pricing trends in the fertilizer market.
September 16, 2025 05:08 PM
·
Allowing year-round sales of E15 nationally could deliver billions in economic gains, according to a new study from the Renewable Fuels Association and National Corn Growers Association.
September 16, 2025 02:29 PM
·
Tariffs are pushing up input costs, with fertilizer prices rising $100 per ton and machinery costs climbing due to steel and parts duties.
September 15, 2025 12:21 PM
·
Bottom line: Despite all the efforts advocates make, workers are still making less money.
September 12, 2025 01:33 PM
·
U.S. producers are holding off on equipment investments amid financial pressure, market uncertainty, a rising demand for diesel, and growing desperation for trade wins.
September 12, 2025 11:18 AM
·
Rep. Mike Simpson (R-ID) joined us on Champions of Rural America to share his insights on upcoming changes to public land management and how they will benefit agriculture and the Western working class.
September 11, 2025 01:21 PM
·
As the White House works to close the trade gap, patience is wearing thin for some lawmakers. Senator Chuck Grassley (R-IA) says farmers are getting backed into a corner.
September 11, 2025 11:26 AM
·
The Interior Department is proposing to repeal the Bureau of Land Management’s Public Lands Rule. This move would make huge strides to empower local decision-making and restore balance between conservation and protecting rural livelihoods tied to these public lands.
September 10, 2025 02:45 PM
·
