Machines and Maintenance

By Alex Shewbirt

Purchasing machinery has always been one of the most significant business decisions farmers make. In the past five years, that decision has been shaped by volatile steel pricing, supply chain disruptions, component shortages, interest rate increases and record swings in asset values. As farmers look ahead to 2026, publicly available market data offers a clearer picture than at any point since 2020.

The bottom line: cost pressures remain high, equipment ownership expenses continue to increase and the market is stabilizing rather than retreating. Understanding what the published data tells us can help producers frame smarter decisions heading into the new year.

Inflation Has Moderated, Not Reversed

From late 2021 through 2023, farmers watched machinery sticker prices climb at an unprecedented rate. That escalator has slowed significantly. The farm machinery Producer Price Index, which tracks wholesale price movement, fell to 1.34 % year over year in August 2025, according to a 2025 farmdocdaily analysis. This marks a substantial decline from the peak annual increase above 19 % recorded in April 2022.

What this means for buyers is simple. Equipment inflation is no longer accelerating, but manufacturers have not returned pricing to pre-pandemic levels. The market has reset to a higher cost baseline, not a discount cycle.

Cost of Ownership Continues to Rise

Even as wholesale pricing slowed, the cost of owning and operating machinery continues to climb.

A 2025 report published by Agriculture. com, summarizing work by farm economists, noted that machinery-related expenses on typical Midwest farms rose from 136 dollars per acre in 2021 to about 171 dollars per acre in 2024, approximately a 25 % increase. These figures include depreciation, fuel, repairs,

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