Farm equipment sales drop ahead of harvest as producers eye diesel costs, trade uncertainties

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.

MILWAUKEE, WI (RFD-TV) — Farm equipment sales in August showed sharply diverging trends across North America, according to new data from the Association of Equipment Manufacturers (AEM). The data indicates a decline in equipment sales in the United States, as energy analysts warn that these combines may become increasingly expensive to operate in the coming weeks due to rising diesel demands.

For farmers in need of a silver lining, rising inputs are just one more concern casting a shadow on this year’s harvest, as they look to the Trump Administration to close the international trade deficit.

Contrasting Combine Sales Across North America

Canadian combine sales surged 52.2 percent compared to August 2024, leaving year-to-date totals up 2.3 percent. In contrast, U.S. combined sales dropped 34.6 percent for the month and are now down more than 42 percent in 2025. Tractor sales in the U.S. also fell 8.2 percent year-over-year, with particularly steep declines in the 100+ horsepower and 4WD segments that are essential for row crop producers.

Curt Blades, AEM Senior Vice President, described Canada’s numbers as a bright spot, but emphasized that U.S. farmers remain cautious about major capital purchases. Persistent challenges — including tight margins, trade uncertainty, elevated input costs, and high interest rates — are delaying equipment upgrades on many operations.

Diesel Demand Fuels More Harvest Uncertainty

While the industry hopes for stabilization as harvest advances, ongoing weakness could push back fleet replacements and ripple into farm service and parts demand. Diesel demand could also cause another skyrocketing input cost for farmers to consider.

“As we see farmers now starting to harvest their crops, we could see diesel demand go up, and that could contribute to higher diesel prices in the weeks ahead,” said Patrick DeHaan. “And as well as getting closer to winter weather, we’ll likely increase heating oil consumption. Heating oil and diesel are essentially the same product. So that’s something that will likely put upward pressure on diesel prices in the weeks ahead.”

Right now, AAA shows a gallon of diesel costs 3.70 on average nationwide. One year ago, that exact gallon cost 3.64.

Farmers Desperate for a Trade Win

Farm leaders in Illinois say they’ll be happy with any victories they can secure.

“Right now, we are looking for any wins that we can get,” said Illinois Farm Bureau President Brian Duncan. “And certainly a long-term, stable win would be better than one announcement of a flash sale, but anything that could help move the psychology of the market, I think, would be beneficial.”

Duncan says right now, for growers like him, the future of trade remains uncertain. Ag Secretary Brooke Rollins will be in Japan in the coming weeks to promote a recent trade deal there worth half a trillion dollars.

Those combines will get rolling in full force soon; in some areas, they are already. Keep watching Market Day Report as we continue our coverage of the fall harvest.

Related Stories
North Dakota Farmers Union (NDFU) President Mark Watne joined us Monday to share his perspective on the America First Trade Promotion Program and potential implications for producers.
A booming butterfat market is good for some dairy products but threatens efficiency and margins for cheesemakers unless protein levels catch up
Duane Simpson, CEO of the National Council of Farmer Cooperatives (NCFC), joined us in Monday’s Market Day Report to share his perspective on the USDA’s plan and potential impact on producers.
U.S. Farmers Navigate Harvest Pace, Costs, Policy Shifts
Land values are increasing faster than farm income, making it more challenging for young and beginning farmers to expand, but supporting equity for current landowners.
Smaller flocks and lower lay rates are pressuring table egg supplies, even as hatchery activity edges higher.

LATEST STORIES BY THIS AUTHOR:

The U.S. Forest Service takes us on the same journey from a tree farm in Nevada across America to experience the magic of Christmas in the U.S. Capitol.
Rep. Randy Feenstra, R-IA, details how the “One, Big, Beautiful Bill” Act (OBBBA) supports farmers, biofuels, and rural communities with tax breaks, crop insurance relief, and ag infrastructure.
Jake Charleston of Specialty Risk Insurance shares risk-reduction strategies to help cattle producers prepare for a successful year ahead.
Oregon FFA CEO Kjer Kizer discusses the proposed budget reductions, potential consequences, and the importance of protecting learning opportunities for students interested in agriculture.
RealAg Radio host Shaun Haney explains why the 2026 USMCA review could directly affect dairy access, produce competition, and export reliability for U.S. farmers and ranchers.
Farms and major food companies use AI to improve efficiency and forecast demand. Still, developers said that training AI for different uses is only possible with support from knowledgeable workers.
Agriculture Shows
Hosted by Scott “The Cow Guy” Shellady and RFD News Markets Specialist Tony St. James, Commodity Talk delivers expert insight into the day’s ag commodity markets just before the CME opens. Only on RFD-TV and Rural Radio SiriusXM Channel 147.
A look at the news, weather and commodities headlines that drove agriculture markets in the past week.
Everything profits from prairie. Soil, air, water — and all kinds of life! Learn how you can improve your land with prairie restoration, cover crops and prairie strips, while growing your bottom line.
Special 3-part series tells the story of the Claas family’s legacy, which changed agriculture forever.