INDIANAPOLIS, IND. (RFD-TV) — U.S. tractor and combine sales continued to fall in September as pressure on farm income leads producers to delay major equipment purchases.
According to the Association of Equipment Manufacturers (AEM), tractor sales declined 16.4 percent in September compared with the same month last year, while combine sales fell 10.9 percent. Year-to-date, tractor sales were down 12.6 percent and combine sales dropped 9.4 percent through September.
Curt Blades, senior vice president with AEM, joined Market Day Report to discuss what is driving the slowdown, how farmers are adapting, and his outlook for the equipment market.
Farm Income Pressure Delays Equipment Purchases
Blades said weaker farm income is the main driver of declining equipment sales. With major machinery purchases requiring significant capital, farmers can delay upgrades when market conditions are unfavorable.
“Capital equipment, farm equipment, is one of those things that you want to buy when it makes sense,” Blades said.
He said that trend has continued for roughly 18 months. Another factor is the cyclical nature of equipment demand. Stronger farm economics in recent years encouraged purchases, meeting some of the demand that might otherwise have carried into the current market.
Blades said he remains optimistic that conditions will improve, though the timing of a recovery remains uncertain.
Farmers Look for Ways to Improve Efficiency
Rather than purchasing an entirely new tractor or combine, some producers are upgrading existing machinery with aftermarket precision agriculture technology and other equipment improvements.
Blades said farmers are also seeing the benefits of newer machines that offer greater fuel efficiency.
He noted that engines in newer equipment can be about 20 percent more efficient than the previous generation, an advantage that becomes especially important when diesel prices are high.
Blades encouraged producers to work closely with equipment dealers to develop long-term machinery plans and ensure purchases fit their financial circumstances.
The goal, he said, is for farmers to invest in equipment for the right reasons without putting their overall operations at financial risk.
Equipment Market Outlook Remains Mixed
Blades said industry economists have differing views on when the agricultural equipment market could recover. Some believe the market may be reaching the bottom of the current cycle, while others expect challenging conditions to continue longer.
He said greater certainty around farm policy, including the potential Farm Bill, could help improve the outlook.
Looking toward 2027, Blades said he remains hopeful that conditions will improve as farmers finish harvest and the industry looks for signs of stronger farm economics.
National FFA Convention Offers a Look at Agriculture’s Future
Despite current economic challenges, Blades said attending the National FFA Convention in Indianapolis offered a positive reminder of the industry’s future.
He was encouraged by the more than 70,000 young people attending the convention and their enthusiasm for agriculture.
“It’s just, you know, with enthusiasm and anxious to participate in this great industry,” Blades said. “It just warms my heart and makes me kind of inspired to do more and more for this industry and this next generation.”
For Blades, the students’ interest in agriculture reinforced his optimism about the industry’s long-term prospects.
