U.S. farmers continued to pull back on equipment purchases in May as low commodity prices, tight margins and ongoing uncertainty in agricultural markets weighed on spending decisions, according to new industry data released by the Association of Equipment Manufacturers (AEM).
Sales of farm tractors in the United States fell 21.6 percent in May compared with the same month a year earlier, while combine sales plunged 56.1 percent, reflecting growing financial pressure across the farm sector.
The downturn was not limited to the United States. In Canada, total agricultural tractor sales declined 17 percent from May 2025 levels, while combine sales dropped 56.5 percent, according to AEM’s monthly market report.
The sharp declines come as many producers face a prolonged period of depressed crop prices and rising financial strain. Farm groups and agricultural economists have increasingly warned that weaker commodity markets, coupled with elevated production costs and uncertainty surrounding trade policy, are reducing farmers’ willingness and ability to invest in major capital purchases.
Equipment sales are often viewed as a barometer of confidence in the farm economy because tractors and combines represent some of the largest investments producers make.
“The May reports reflect the ongoing uncertainty and softness in this market,” said Curt Blades, AEM Senior Vice President. “Farmers are hurting, and equipment sales numbers are a clear indication of the overall health of the farm economy and depressed commodity prices. America’s farmers and ranchers need long-term trade certainty and public policies that help them stay profitable and resilient.”
The latest figures extend a broader slowdown that has characterized the farm equipment market over the past year. Dealers and manufacturers have reported softer demand as farmers postpone machinery upgrades and focus on preserving cash amid uncertain economic conditions.
AEM releases its agricultural tractor and combine sales reports monthly, providing one of the industry’s most closely watched indicators of farm-sector spending and sentiment.
