Quick Statistics
Machines and Maintenance
labor and interest, illustrating the reality that higher prices are now baked into production systems.
This is consistent with USDA farm asset data. The USDA Census of Agriculture shows that machinery and equipment asset values on farms increased across size categories between 2017 and 2022, reflecting higher market pricing and investment levels. This reinforces the trend that farm balance sheets have absorbed higher machinery valuations, which influences replacement decisions, debt service and cash flow planning.
Used Equipment Markets Are Softening
One of the more notable shifts entering 2026 is the cooling of used equipment values. According to Sandhills Global data cited by Farm Equipment magazine, asking prices for used tractors and combines fell between 6 % and 7 % year over year in 2025, and inventory levels in many categories continue to adjust downward.
This matters for producers in two ways. First, it increases the attractiveness of late-model used machinery as a capital alternative to new assets. Second, it introduces more pricing pressure on new iron, since buyers can compare cost and value more easily across channels.
While this does not signal a collapse in machinery values, it suggests that the upper limits reached in 2022 and 2023 are no longer holding.
New Equipment Sales Have Slowed
Demand indicators point to buyer caution. Industry reporting throughout 2025 shows significant declines in tractor and combine sales compared to previous years, according to coverage by AgDaily and other agricultural business outlets. Reasons reflected in reporting include tighter margins, increased input and financing costs and delayed purchasing
Quick Statistics
• Machinery inflation cooled to 1.34 % in 2025
• Used tractor and combine prices fell 6 % to 7 % in 2025
• Machinery ownership costs jumped 25 % since 2021
decisions. For manufacturers and dealers, weaker sales affect production planning, incentives and availability strategies heading into 2026.
How Trends Shape the 2026 Landscape
Based on the data available today, several themes stand out that can help inform purchasing strategy, recognizing that markets evolve and none represent guarantees. List Price Escalation Has Slowed With the machinery PPI near 1 %, sharp price spikes appear unlikely in the near term. However, structural cost drivers such as labor, research investment, technology integration and regulatory compliance remain elevated. This supports the view that prices will stay high relative to historical levels, even if they rise more slowly. Used Markets Offer Leverage and Choice With used values softening and inventory adjusting, some buyers may find late model machines at improved value relative to new units. This could change trade ratios, purchase timing and depreciation strategy depending on the size of the operation. Financing Is a Larger Cost Variable than Sticker Price Interest expense has become a central component of machinery cost. For many operations, borrowing structure, timing and repayment horizon matter as much as list price. This dynamic suggests that producers should place an increased
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