Farm Machinery Manufacturers Facing Headwinds

The U.S. farm machinery equipment market experienced challenges across many fronts in 2025.

Recent data suggests many new and used equipment sales categories continued to decline last year. Additionally, lower grain prices and farm incomes, along with the elevated cost of borrowing money, have dampened farmer demand for equipment and machinery. Major manufacturers like Deere, CNH Industrial, and AGCO are adjusting their inventories by scaling back production. 

Farmdoc Daily from the University of Illinois said the most significant challenge was the tariffs implemented in 2025, which further squeezed manufacturer margins.  In 2020, farm tractor sales grew by 17.7%, and combine sales rose by almost 5%. A market downturn became more pronounced in 2023 and continued sharply the following year.

But despite the decline in sales, machinery and equipment prices remain high. The National Agricultural Statistics Service said the index for machinery prices increased 0.8% in December 2025 compared to 2024.

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