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
Severe drought in South Texas is forcing ranchers to consider cattle sell-offs as feed and water supplies dwindle, threatening herd health and livestock operations.
RealAg Radio’s Shaun Haney shares insights from new Real Agri-Studies research surrounding the relationship between farmers and their lenders and what it reveals about the current farm economy.
Farm Bureau economist Dr. Faith Parum explains how geopolitical dynamics in the Middle East could further tighten fertilizer movement, increase fuel costs, and complicate planting decisions for U.S. farmers this spring.
Missouri Farm Bureau President Garrett Hawkins discusses the potential impact of data center growth on farmland, the Landowner Fairness Act, and key priorities for Missouri farmers heading into planting season.
Dr. David Anderson with Texas A&M University AgriLife Extension discusses how geopolitical tensions and the Middle East, along with export disruptions in the Chinese market, will shape cattle markets in the months ahead.
Refining shifts could influence fuel and input costs.

LATEST STORIES BY THIS AUTHOR:

China’s stricter inspection rules prompt Cargill to pause soybean exports from Brazil, briefly lifting U.S. soybean prices as traders anticipate potential shifts in global trade, as export demand remains supportive across all major U.S. commodities.
Suderman joins Tony St. James in the RFD Studios to discuss how geopolitical tensions are triggering global transport disruptions, new inflation pressures, and other challenges for agriculture to navigate.
Farm CPA Paul Nieffer explains the Farmer Bridge Assistance payment limits, provides clarity on new legislation, and offers advice for producers considering business structure adjustments.
A man accused of orchestrating a nationwide cattle investment fraud scheme has been arrested in California after being on the FBI’s wanted list.
Energy shifts influence diesel and fertilizer costs.
ASFMRA’s Craig Thompson shares insights for American farmers who are navigating farmland markets amid agricultural uncertainty.
Agriculture Shows
The goal of “Where the Food Comes From” is as simple as its name implies — host Chip Carter takes you along on the journey of where our food comes from — and we don’t just mean to the supermarket (though that’s part of the big picture!). But beyond where it comes from, how it gets there, and all the links in the chain that make that happen.
Join markets specialist Scott Shellady, better known as the Cow Guy, as he covers the market-close, breaking down headlines that drive the commodities and equities markets with commentary from respected industry heavyweights.
Crop yield champions David Hula from Virginia and Randy Dowdy from Georgia are back for another season with the aim of schooling more growers across the country in their winning ways.
“Texas Agriculture Matters” is a fun, informative look at the role of agriculture in our daily lives. The show utilizes the trademark wit and wisdom of its host Commissioner Sid Miller — an 8th-generation farmer-rancher and 12-time World Champion rodeo cowboy — to explore a new Texas ag-related topic each week.