Low Machinery Sales Reflect Uncertainty in Future of Tariffs, Farm Bill

U.S. tractor sales dropped 16%, and combine sales dropped 79% in January 2025 compared to the same time last year, according to numbers from the Association of Equipment Manufacturers (AEM).

“As we enter 2025, we’re seeing a continuation of slow sales we saw throughout 2024,” said Curt Blades, senior vice president at AEM. “The Ag industry continues to face uncertainties including global trade concerns, tariffs, and the lack of assurance that a farm bill provides.  These uncertainties are reflected in the softness of the ag equipment market.”

January starts 2025 with low sales in all segments of the ag machinery market, falling below last year’s sales and the five year average (2020–2024). 

Tractor Sales

Total farm tractor sales for January 2025 were 9,143, down 15.8% compared to 10,860 sold in January 2024. Total farm tractor inventory began at 114,552 in January.

Tractor sales are broken down by horsepower range as follows:

Sales for 2WD sub-40 hp tractors in January 2025 were down 11.3% from 2024, with 5,308 sales this year, and 5,987 last year. 2WD sub-40 hp tractor inventory began at 72,369 in January.

Sales for 2WD 40–100 hp tractors in January were down 16.3%, with 2,631 sales in 2025, and 3,145 in 2024. 2WD 40–100 hp tractor inventory began at 31,525 in January. 

Sales for 2WD 100+ hp tractors in January were down 26.8%, with 1,103 sales this year, compared to 1,506 last year. 2WD 100+ hp tractor inventory began at 9,994 in January.

Sales for 4WD tractors were down 54.5% in January 2025, with 101 sales this year, and 222 last year. 4WD tractor inventory began at 664 in January. 

Combine sales

Sales for self-propelled combines were down 78.9% in January with 97 sales this year compared to 460 last year. Self-propelled combine inventory began at 735 in January.