Equipment Slump
Industry Leans on Tech, Adapts to Market
By Cindy L. O’ Hara
After years of growth, the agricultural equipment market in the United States is experiencing a notable downturn. Facing economic headwinds, uncertain trade conditions and rising costs, both farmers and manufacturers are adjusting their strategies.
To offset declining sales and ensure long-term viability, both sides of the industry are increasingly looking to double down on technology.
The Association of Equipment Manufacturers( AEM) reports continued weakening in U. S. combine and tractor sales.
In July 2025, U. S. sales of combines fell 43.7 % while total agricultural tractor sales fell 4.9 % for that same month, compared to 2024. Conversely, Canadian sales of combines
From Ag Slump to Smart Moves
grew 11.4 % in July 2025 compared to that same month last year. Canadian sales of two-wheel-drive tractors also increased slightly, growing 3 % in July 2025 compared to the year before.
“ While we’ re encouraged by the modest growth in Canadian combine and tractor sales, the significant declines in the U. S. reflects ongoing caution in the marketplace,” Curt Blades, senior vice president at AEM, said.
The drop comes after years of volatility. While demand surged during the pandemic, production has since caught up and rising interest rates and lower farm incomes have cooled equipment spending.
Blades noted that the current statistics are“ not a huge surprise based on the way things have been evolving for the last six to eight months. We ' ve kind of seen this coming [ so ] manufacturers have been preparing."
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