MILWAUKEE, Wis. – Farm equipment sales were down in the first half of 2025 as compared to the same period a year ago, according to the latest numbers from the Association of Equipment Manufacturers (AEM).

Sales of all two-wheel-drive farm tractors fell 10.4 percent, AEM reported July 10. Two-wheel-drive tractors of less than 40 HP dropped 8.9 percent, while those 40-100 HP declined 7.8 percent. Those 100 HP and over were down 26.2 percent. Four-wheel-drive tractors fell 38.5 percent. Self-propelled combines dropped 43.4 percent.

“The ongoing slump in U.S. combine and tractor sales demonstrates the market challenges facing the agricultural sector,” Curt Blades, AEM senior vice president, said in a release. “We know farmers are hesitant to make major investments with global trade instability, high interest rates and increased input prices.”

Farmers may be in a holding pattern regarding machinery purchases until after they harvest their crops, noted Michael Langemeier, director of Purdue University’s Center for Commercial Agriculture and a professor of agricultural economics.

“The crops look fairly good across the Corn Belt, (but) there’s always spots where they don’t look so good, but we’ve got a long ways to go yet with this year’s crop,” he explained. “And we don’t know what the prices are going to be and we never do.

“There’s just as much uncertainty this year as every year. And so maybe they’re just in a wait and see attitude. Let’s see what this year looks like before we actually commit to buying machinery and building more buildings.”

During the Purdue Commercial AgCast, Langemeier and James Mintert, emeritus professor of agricultural economics at the university, discussed the most recent Purdue/CME Group Ag Economy Barometer. The June survey – released July 1 – found the percentage of people who say they plan to lower their investments in farm machinery rose from 48 percent in May to 54 percent in June.

The survey also found 24 percent of respondents think it’s a good time to invest in large farm investments such as buildings and machinery, up from 12 percent a year ago.

“We’re picking up this sentiment that this could be a good time to make some investments and that largely seems to relate to the fact that people think that it’s a good time to make a deal because inventories are pretty large and dealers might be more willing to negotiate,” Mintert pointed out. “But they’re not willing to actually step out and write a check and make that investment decision, that commitment to invest.”

The June ag barometer survey was conducted June 9-13.

Brett Davis, CEO of the North American Equipment Dealers Association, said sales of under 100 HP tractors continue to be flat year over year.

“Market growth in this segment has (been) stagnate for the past few years – no material changes are expected,” he told Farm World. “High horsepower and four-wheel-drive tractors continue to decline year over year. I do not expect to see immediate improvement until net farm income goes up and machine prices stabilize.”

Deere & Company’s production and precision agriculture net sales fell 21 percent in the second quarter of 2025 from the same period last year, the company reported in May.

“Production and precision agriculture sales decreased for the quarter as a result of lower shipment volumes,” the company said. “Operating profit decreased due to lower shipment volumes/sales mix and the unfavorable effects of foreign currency exchange, partially offset by lower production costs and price realization.”

The company’s small agriculture and turf net sales dipped 6 percent. Deere’s fiscal year ends in late October.

CNH Industrial N.V. – which includes the brands Case IH and New Holland – saw their agriculture-related net sales fall 21 percent during the first quarter of 2025 from the same period last year, the company said in May. For the year, CNH projected its ag segment net sales would be down 12 to 20 percent from 2024.

“CNH is focused on driving down excess channel inventory primarily by producing fewer units than the retail demand level,” the company said in a release.