North American Farm Machinery Sales Decline

Farmers across North America are significantly cutting spending on new farm machinery, particularly big-ticket items, due to a combination of high machinery, fertilizer, and fuel prices, alongside a global grains glut that has depressed crop prices. Sales of large equipment like tractors and combines were down 30-40% in the United States in March compared to the previous year. This financial squeeze on farmers is exacerbated by Donald Trump's trade war tariffs, which have increased the production costs of farm machinery. The Trump administration is reportedly planning further tariffs, which will likely raise prices even more. John Deere estimates tariffs will cost it $1.2 billion in 2026. The Steel Manufacturers Association is advocating for a reduction in these tariffs, stating they are the primary problem for the beleaguered industry. Trade disputes have also hurt United States crop export sales, with China's absence from the soybean market leading to depressed North American crop prices and large stockpiles. Farmers are delaying equipment purchases, opting to use aging machinery for longer, as they face tight or negative profitability for the upcoming growing season.