U.S. tractor sales dropped nearly 11 percent in July as farmers hold onto equipment longer and watch expenses
URBANA, Ill. — Farmers are keeping the checkbook closed when it comes to new iron.
U.S. tractor sales fell 10.9 percent in July compared with a year ago, while combine sales dropped 5.3 percent, according to new numbers from the Association of Equipment Manufacturers.
The slowdown comes as farmers continue to deal with tight margins, high borrowing costs and uncertainty heading into harvest.
A total of 15,985 farm tractors were sold in the United States during July. Through the first seven months of 2026, sales totaled 105,185 tractors, down 13.1 percent from the same period last year.
The biggest drop came in four wheel drive tractors, the big horsepower machines commonly found across the Corn Belt.
Only 152 four wheel drive tractors were sold during July, down nearly 39 percent from 248 a year earlier. Sales through July totaled 1,043 units, 27 percent behind last year’s pace.
Those numbers suggest larger row crop operations are also putting off expensive equipment purchases.
Instead of trading tractors, producers are keeping existing equipment in the field longer and spending money on repairs and maintenance.
The weakness is not limited to the United States.
Canadian tractor sales fell 7.8 percent in July, while combine sales were down nearly 11 percent from last year.
Curt Blades, senior vice president with the Association of Equipment Manufacturers, said uncertainty continues to weigh on the market.
“The July data reflects continued softness in the agricultural equipment market as farmers and equipment manufacturers navigate persistent economic uncertainty,” Blades said. “Farmers continue to face difficult decisions, and clear, consistent policy direction is essential to helping them plan, invest, and remain competitive.”
High Interest Rates Remain a Problem
Cheaper money could help put farmers back in the market for new equipment, but economists are not expecting much relief.
The latest Farm Journal Ag Economists’ Monthly Monitor found 11 of 15 economists surveyed expect average interest rates on agricultural operating loans to be slightly higher in 2027 than in 2026.
Four expect rates to remain about the same.
None expect borrowing rates to fall.
That could keep pressure on equipment purchases as farmers weigh the cost of financing a new tractor or combine against keeping the old one running another season.
There is some improvement in the broader farm economy.
Fifty six percent of economists surveyed said conditions were somewhat better than a month earlier, while another 38 percent saw little change. None believed the farm economy had gotten worse during the month.
For equipment dealers and manufacturers, however, farmers are still sending a pretty clear message.
Until profitability improves and producers have more confidence in what is coming next, a new tractor can wait.
Leave a Reply