MILWAUKEE, Wis. – Farm equipment purchases were down in the first half of the year from the same period in 2025, but combine sales were a bright spot in June, according to the Association of Equipment Manufacturers (AEM).

Sales of all two-wheel-drive farm tractors dropped 13.5 percent. Two-wheel-drive tractors under 40 HP fell 15.7 percent, while those 40-100 HP dipped 6.1 percent. Those 100 HP and over fell 16.8 percent. All four-wheel-drive tractors dropped 24.6 percent, AEM said.

For the first half of the year, sales of self-propelled combines were down 11.4 percent. Sales in June 2026 were up 3.9 percent over June 2025.

AEM released its latest monthly sales numbers July 10.

“This June data reflects a market that is still navigating significant economic headwinds,” Curt Blades, AEM senior vice president, said in a release. “Although tractor sales remain below last year’s levels, the increase in combine sales is a welcome development and demonstrates that farmers continue to invest where it makes the most sense for their operations.

“Greater certainty around market conditions and long-term farm policy remains critical to supporting confidence across rural America.”

Brett Davis, CEO of the North American Equipment Dealers Association (NAEDA), said cash crop equipment continues to be locked in a down market.

“We are treading water at the trough,” he told Farm World. “I do not foresee much change unless commodity prices go up and inputs go down. Only essential replacement equipment will be purchased.”

Factors that may be impacting the purchase of new farm equipment include an over supply of soybeans, high input costs and high equipment pricing, Davis noted.

“Tariffs are creating very expensive equipment, the OEMs (original equipment manufacturers) can no longer eat the tariff impact,” he explained. “(Those costs) must be passed up to consumers.”

Dairy and hay and forage markets are performing better than cash crops, Davis added.

NAEDA represents more than 3,500 equipment dealers across North America in agriculture, industrial, forestry and outdoor power sectors, according to its website.

Michael Langemeier, director of the Purdue University Center for Commercial Agriculture, discussed farmers’ interest in investing in new equipment during the center’s July 10 AgBrief. The AgBrief included information gleaned from the latest Purdue/CME Group Ag Economy Barometer, released July 7.

The barometer’s farm capital investment index declined one point in June to 40, Langemeier said, putting it at its lowest level since September 2024. The index measures producers’ willingness to make large purchases such as machinery, buildings and other capital improvements, excluding land, he said.

“A weaker investment index suggests that many producers are taking a more cautious approach in evaluating whether major purchases fit their current financial position,” Langemeier said. “For many operations, this type of environment increases the importance of knowing your cost structure and understanding which investments will improve efficiency or profitability, and of course, depends on what prices do the rest of this year.”

In another video sharing the results of the June barometer, Langemeier said an index of 40 “obviously means a lot of people aren’t particularly enthused about making machinery, equipment and building purchases in the current economic environment.”

Twenty-two percent of respondents to the barometer survey said they expect their farms’ financial performance to improve over the next 12 months, he said.

The percentage of respondents who thought the country was headed in the right direction dipped from 48 percent in May to 47 percent in June, Langemeier said. As recently as March, 65 percent thought the country was headed in the right direction; in December, 75 percent thought so.

“I think this question is important to think about when you’re thinking about the long-run policy environment and specifically, the long-run future expectations index,” Langemeier said. “The future expectations index is likely lower in May and June, particularly this month, because of the answer to this question. (If) people are more pessimistic about the direction of the country, they’re probably going to be more pessimistic about their future expectations.”

Langemeier said the barometer’s index of future expectations fell seven points in June.