DES MOINES, IOWA (RFD News) — Farmers receiving payments from the Farmer Bridge Assistance Program are far more likely to shore up finances than expand spending, according to analysis from Wesley Davis, chief ag economist and partner at Meridian Ag Advisors. Recent commentary has suggested the aid could fuel equipment upgrades or higher input use, but current data point in a different direction.
Survey results show roughly 78 percent of farmers plan to use payments to pay down debt or strengthen working capital rather than invest in machinery. That signals a defensive posture as producers manage tight margins, higher interest costs, and lingering balance-sheet stress after multiple difficult years.
Additional data reinforce that caution. The share of farmers planning to sell mid- and long-term assets is climbing toward levels last seen during the 2017–2019 downturn. Asset sales are being used to reduce leverage, rebuild liquidity, and improve cash flow heading into the 2026 production season.
While some operations will still invest in equipment or inputs where returns justify it, Davis notes the broader trend reflects risk management, not expansion. For many farms, survival and financial stability remain the priority.
U.S. tractor sales are down 20 percent compared to this time last year, with combine purchases seeing an even steeper decline, raising questions about the outlook for the agricultural machinery market in the year ahead.
Curt Blades with the Association of Equipment Manufacturers (AEM) joined us on Thursday’s Market Day Report to discuss the latest trends and what is driving the slowdown in ag equipment sales.
In his interview with RFD News, Blades outlined the current state of tractor and combine sales and explained how the farm economy is influencing purchasing decisions. He also discussed supply and demand dynamics in the ag equipment sector, shared his expectations for the industry as it enters the new year, and addressed broader market factors that could affect farmers and the agricultural equipment sector as a whole, noting that economic conditions may shape equipment demand going forward.
