Equipment dealers across North America are concluding a challenging season of agricultural trade shows as farmers prepare for spring planting with limited new machinery purchases.
While agricultural producers haven’t completely stopped buying equipment, many are significantly reducing expenditures and steering clear of expensive machinery due to elevated costs for equipment, fertilizer, and fuel, combined with a worldwide surplus of grain that’s driving down commodity prices.
“They might not buy the million-dollar combine, but they’ll buy a $100,000 implement,” explained Chad Jones from manufacturer Degelman Industries, speaking from his company’s display of rockpickers, harrows, rippers and other yellow equipment at Canada’s Farm Show in March.
Agricultural producers continue to make purchases, but spending levels are substantially lower than previous years, based on sales information from the Association of Equipment Manufacturers, which represents major companies in the North American sector.
The organization reported to Reuters that sales of expensive equipment such as tractors and combines declined by 30% to 40% in the United States during March when compared to the same period last year.
Agricultural equipment sales have been severely impacted by financial pressure on farmers, worsened by President Trump’s trade war tariffs that have increased production costs for already costly machines like tractors and combines. These pieces of equipment, referred to by farmers as “big iron,” require substantial amounts of steel and frequently include imported parts.
The Trump administration reportedly plans to implement a 25% tariff on the total value of finished imported products containing steel and aluminum, rather than just 50% on the metal components of those items. This change will likely increase the overall cost of such products. However, equipment primarily constructed from steel and aluminum, including tractors and combines, will continue facing the 50% tariff that has been active for nearly a year.
During its latest quarterly earnings report, a John Deere representative stated the company projects tariffs will cost approximately $1.2 billion in 2026, noting that not all of 2025’s tariff expenses had been transferred to farmers.
Last Friday, Trump urged manufacturers to reduce prices to assist farmers.
However, for the struggling industry, Trump’s tariffs represent the core issue. The most effective method to lower machinery costs would be “to significantly scale back on the tariffs that are hitting the manufacturers, and the retaliatory tariffs that are hitting farmers,” stated Kip Eideberg from the Association of Equipment Manufacturers.
Trade disputes have damaged U.S. crop export sales, with China being absent from the U.S. soybean export market for months, reducing North American crop prices and creating massive stockpiles.
“They were looking at profitability being very tight to even potentially negative for the upcoming growing season, and this has led to slower decisions on equipment replacement,” explained Farm Credit Canada economist Leigh Anderson. Farmers have postponed planned purchases, keeping aging equipment longer, he noted.
Evidence of this reduced interest was visible at the agricultural show in Regina, where few farmers examined tractors and other large machinery. Despite more than 5,000 attendees at the show, many equipment displays remained relatively quiet.
“It’s fair to characterize it as purchasing behavior shifting from wants to needs,” said Eideberg of AEM. Fertilizer and machinery production costs are difficult to decrease once they have increased, which is why the AEM hopes to see tariff reductions.
“That’s the immediate relief that will make a significant difference for farmers and manufacturers,” Eideberg concluded.
