U.S. tractor sales reflected a divided market in September, with smaller machines showing modest strength while sales of large equipment and combines continued to weaken, underscoring the cautious mood across farm country.
According to the latest Association of Equipment Manufacturers Ag Tractor and Combine Report, total two-wheel-drive tractor sales rose 5.1 percent year-over-year, buoyed by a 17.3 percent increase in mid-sized 40-100 horsepower models and a 2.5 percent gain in units under 40 horsepower. However, demand for higher-horsepower tractors fell 11.5 percent, and four-wheel-drive models dropped 32.7 percent. Sales of self-propelled combines slid sharply, down nearly 22 percent from a year ago.
Year-to-date totals tell an even clearer story: overall tractor sales are down 8 percent from 2024, while combine sales have plunged almost 40 percent. Inventories remain high, particularly in smaller horsepower categories, suggesting that while demand for utility tractors has steadied, many large-scale operators are still holding off on major purchases.
That trend matches recent sentiment captured in Purdue University’s Ag Economy Barometer, which found that farmer confidence in current financial conditions continues to erode. Although the overall index ticked up slightly in September to 126, the Current Conditions Index fell four points, and the Farm Capital Investment Index declined 12 points, reflecting producers’ reluctance to take on new debt.
Many farmers cited weaker commodity prices, high input costs, and lingering uncertainty over trade and weather as reasons for delaying large equipment purchases.
The AEM data and farmer sentiment suggest that the agricultural economy is entering a cautious phase: producers remain willing to invest in smaller, practical equipment but are pulling back on high-dollar machinery as margins tighten. With interest rates still high and global demand uneven, 2025 may close as a year defined more by maintenance and efficiency upgrades than by large-scale expansion on U.S. farms.
»Related: Farmers say current conditions on U.S. farms are weakening
