MILWAUKEE, Wis. – Sales of a variety of farm machinery were down in 2025, a year called “challenging” by the head of an equipment dealers association.

Purchases of all two-wheel-drive farm tractors dropped 9.2 percent last year, the Association of Equipment Manufacturers (AEM) said Jan. 13. Two-wheel-drive tractors of less than 40 HP fell 9.1 percent, while those 40-100 HP declined 4 percent. Those 100 HP and over were down 22.6 percent. Four-wheel-drive tractors dropped 41.6 percent. Self-propelled combines fell 35.6 percent.

Overall, the year for farm equipment dealers was challenging, explained Brett Davis, CEO of the North American Equipment Dealers Association (NAEDA).

“Net farm income is still low and farmers refrained from making discretionary purchases,” Davis told Farm World. “Cash crop is very soft and impacting combine and HHP (high horsepower) tractor sales. Specialty crops fared better along with cattle and dairy. Mid-range tractors and hay tools performed better than combines and HHP tractors. (The) small tractor market remains soft, but is steady year over year.”

NAEDA represents more than 3,500 equipment dealers across North America.

Bloated new and used equipment inventories hurt dealers, he noted. Some farmers also minimized their spending on repairs, he added.

Curt Blades, AEM’s senior vice president, said the data is a result of the economic instability and pressures farmers have faced over the past months.

“Throughout this short-term decline in sales, equipment manufacturers remain committed to supporting farmers with the equipment they need,” he said in a statement. “As we look into 2026, AEM remains confident in the industry’s resilience and unique ability to adapt.”

Davis said he expects to see a rebound in sales early in 2026. “Government incentives will help drive some sales of needed replacement equipment,” he said. “I expect to see a busier than normal quarter one.”

In the most recent Purdue University/CME Group Ag Economy Barometer, 60 percent of respondents said it was a bad time to make large investments. In a separate question, 55 percent of respondents said they planned to reduce their machinery purchases, up from 51 percent the month before.

“There’s no evidence of any confidence rise there,” noted James Mintert, emeritus professor of agricultural economics at Purdue. “(There’s also) no change virtually in the percentage of people who said that it’s a good time (to buy equipment). I think that went from 7 to 6 percent. I don’t think we’re going to see any rush to the doors of the machinery dealers.”

Mintert discussed the results of the ag barometer on the Jan. 6 Purdue Commercial AgCast with Michael Langemeier, director of the university’s Center for Commercial Agriculture.

Langemeier said December’s barometer asked respondents what they would do if the government offered payments similar to those included in the 2019 Market Facilitation Program (MFP).

“I think 10 percent said they would invest in machinery,” he said. “So, a very small percent. It’s not zero. I think that just reflects how tight margins still are, even with the potential of these payments. Margins are tight enough that some people are going to have a little bit of trouble repaying debt, yet alone buying new machinery.”