Equipment Sales Slump

Year-to-date sales of tractors and combines trail last year’s sales for the same period and are significantly below the 5-year average according to the Association of Equipment Manufacturers (AEM) monthly Ag Tractor and Combine Report (Figure 3). For the year, sales of 4-wheel and 2-wheel tractors combined are off 9%, with 4-wheel units down 15% compared to 2025. Through March of last year, nearly 37,000 tractors had been sold compared to this year’s sales of just under 34,000 units. Year-to-date sales of combines are off more 3.5%.

Figure 3. U.S. Unit Sales of Tractors & Combines

AEM Senior Vice President Curt Blades said this year’s drop in sales "reflect the overall softness in the Ag economy." Further evidence of this was seen in March’s Purdue University-CME Group Farm Capital Investment Index based on responses to its monthly survey. Only 4% of survey respondents indicated they plan to increase farm machinery purchases in the next 12 months. Almost half of equipment dealers estimate new equipment sales will drop 2% this year and one-third say used equipment sales will drop this year. But the soft demand has not softened machinery prices. Prices are expected to increase 1-6% this year.