CALGARY, ALBERTA (RFD NEWS) — U.S. farm equipment sales remained under pressure in July as producers continued delaying major purchases amid economic uncertainty. The Association of Equipment Manufacturers (AEM) says total tractor sales fell 10.9 percent from a year earlier, while combine sales declined 5.3 percent.
July tractor sales totaled 15,985 units, down from 17,938 last year. Sales of two-wheel-drive tractors fell 10.5 percent, while four-wheel-drive tractor sales dropped 38.7 percent.
Year-to-date tractor sales reached 105,185 units, down 13.1 percent from 2025. Self-propelled combine sales totaled 1,676 through July, a decline of 10.2 percent.
The weakness extends across horsepower categories. Sales of tractors under 40 horsepower are down 15.1 percent year to date, while tractors above 100 horsepower are down 15.5 percent.
For producers, softer equipment demand reflects continued caution around commodity prices, borrowing costs, and farm profitability. Manufacturers and dealers will watch whether fall income prospects improve enough to support machinery replacement and investment.
Shaun Haney, host of RealAg Radio, joined us on Thursday’s Market Day Report to discuss the overall decline in farm equipment in the United States and Canada.
In his interview with RFD News, Haney said the decline in large tractors suggests commercial-scale operators are pulling back on major equipment purchases.
Canada’s numbers are holding up somewhat better, although sales remain below last year’s levels. Canadian tractor sales fell 7.8 percent in July and are down 9.6 percent year-to-date. Combine sales are down just 1.9 percent year-to-date, compared with a 10.2 percent decline in the U.S.
One bright spot is Canadian sales of 100-horsepower-plus two-wheel-drive tractors, which increased 4.9 percent in July and are up 6.2 percent year-to-date.
Haney says producers on both sides of the border are increasingly holding onto equipment longer and managing repair and maintenance costs as they delay new purchases.
Ultimately, he says a turnaround will depend on improved farm profitability and stronger producer confidence.
Lower interest rates could also encourage farmers to return to the new-equipment market, while Haney says a recent improvement in Canadian farmers’ sentiment offers some hope that capital investment could pick up later this year.
