MILWAUKEE, Wis. – Farm machinery sales were down in 2024, according to the Association of Equipment Manufacturers (AEM), but an official with the organization is hoping for a rebound this year.

Sales of all two-wheel-drive farm tractors fell 13.4 percent for the year, AEM reported Jan. 10. Two-wheel-drive tractors of less than 40 HP dropped 14 percent, while those 40-100 HP declined 9.9 percent. Those 100 HP and over were down 17.5 percent. Four-wheel-drive tractors dipped 4.5 percent. Self-propelled combines fell 24.3 percent.

AEM also released sales for December 2024 as compared to December 2023. Sales of all two-wheel-drive tractors dropped 10.9 percent. Four-wheel-drive tractors fell 27.5 percent, while self-propelled combines were down 26.4 percent.

“December’s sales of ag tractors and combines follow patterns we saw throughout 2024 which reflect softness in the market,” Curt Blades, AEM senior vice president, said in a release. “While the year has been marked by high interest rates and uncertainty throughout the overall ag economy, AEM is looking forward to the potential in 2025 and will continue to advocate for policies focused on positively impacting the industry.”

Dealers represented by the North American Equipment Dealers Association (NAEDA) had a very good year in 2024, said Kim Rominger, the organization’s president and CEO. Many dealers, however, are predicting a drop in sales for this year, he said.

“Inventory that had been short in previous years was readily available to them (in 2024),” Rominger told Farm World. “The large equipment as a group was just right inventory wise so that dealers could hold their prices as there seemed to be just enough to go around. What this did was reduce dealers’ new inventory but that age-old problem of used equipment did tend to pick (up) although it wasn’t a large issue last year as most used did move rather quickly.”

Most everything sold well, he noted. Compact tractor sales did drag a bit, Rominger said. He attributed that to the economy in general and to the fact there is greater competition in that market segment with several manufacturers producing that equipment.

“For the larger equipment, the level of inventory out there was as close to being right what the market could absorb as I have seen in many years,” Rominger explained. “Manufacturers and their suppliers were back to more normal production and were able to catch up on the demand that was out there. I think the manufacturers were able to meet the pent-up demand that had been there post-COVID and come back to more normal levels.”

Though it wasn’t a large problem in 2024, supply issues with a manufacturer’s supplier did cause some problems on particular models, he said.

New and used equipment inventories have been growing on dealer lots, Rominger pointed out. 

“The economy has slowed down while production has increased,” he said. “All the new inventory sold last year created used inventory for dealers and now manufacturers are shipping new inventory at an increased pace, so they have it out of their stock and in dealers’ hands. This is causing floor plan costs and other carrying costs for dealers to rise. I am told that there are not huge amounts of shopping by customers.”

Rominger said he’s heard many dealers are predicting a 20-40 percent drop in sales for the year. NAEDA represents more than 4,000 agriculture, industrial, forestry and outdoor equipment dealers in North America.

“Most farmers did well to upgrade their equipment last year and are in good shape,” he said. “Also, the unknown factor of the economy is a factor in their decisions. The fact that Congress has not passed a farm bill as yet is also a factor in farmers’ decisions to this point. 2025 will be a very interesting year to watch.

“(Other factors) are interest rates, trade policy, tariffs, potential wars, etc. There are so many outside factors that affect our industry it is hard to say which ones will impact us this year, and how they will impact our dealer members.”

How dealers manage their businesses in 2025 will help determine the kind of year they have, Rominger said.

“Those that anticipate and react to the factors I have mentioned will do well. Our dealers are growing and becoming more diversified, making them better able to absorb some downturn.”