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.

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