PARKER, COLORADO (RFD NEWS) — U.S. tractor sales fell sharply in June as producers remained cautious about major equipment purchases, while combine sales posted a modest increase. The mixed results reflect continued pressure from farm income uncertainty, high financing costs, and uneven replacement demand.
The Association of Equipment Manufacturers (AEM) says total farm tractor sales dropped 18.4 percent from June 2025 to 18,186 units. Year-to-date tractor sales declined 13.6 percent to 89,063 units. Four-wheel-drive tractor sales fell 30.3 percent during the month.
Declines affected every tractor category. Sales of tractors below 40 horsepower dropped 22 percent, while 40- to 100-horsepower sales fell 10 percent. Sales of tractors above 100 horsepower declined 11.7 percent.
Self-propelled combine sales increased 3.9 percent from a year earlier to 269 units. However, year-to-date sales remained 11.4 percent lower, indicating that a single stronger month has not reversed the broader slowdown.
Equipment demand will continue depending on crop prices, interest rates, farm income, and policy certainty. Dealers and manufacturers will watch whether the harvest needs additional machinery purchases later this year.
As producers receive updated guidance on the U.S. Department of Agriculture (USDA) Farm Service Agency’s Supplemental Disaster Relief Program (SDRP), it is creating new questions regarding how farm income is calculated for eligibility now that equipment gains are automatically considered farm income
Farm CPA Paul Neiffer joined us on Thursday’s Market Day Report to explain changes related to the program’s 75% adjusted gross income (AGI) test and what the update could mean for farmers.
In his interview with RFD News, Neiffer said the change impacts producers seeking additional SDRP payment limits. Under the program, farmers can qualify for higher payment limits if more than 75 percent of their net income comes from farming.
He explained that under previous guidance, equipment gains could only count as farm income in certain situations. However, beginning with applications filed on or after June 2, equipment gains are now automatically considered farm income. Neiffer added that agritourism, direct sales of farm products to consumers, custom farming, and the sale of farm inputs are also included as farm income under the updated rules.
Neiffer said the change removes the previous two-thirds test requirement and could allow some producers who previously did not qualify to become eligible for assistance.
He encouraged farmers who were previously told they did not qualify—particularly those impacted by equipment gains—to check back with their CPA, attorney, or enrolled agent to determine whether the updated rules change their eligibility.
Neiffer also reminded producers of upcoming deadlines, including the April 30 deadline to file the required FSA Form 510 and the August 18 deadline to update eligibility for certain producers who received prior assistance.
LEARN MORE: www.FarmCPAReport.com
