Tractor Sales Fall in July Amid Continued Ag Economy Pressure

Successful Farming’s Curt Bennink reported that “U.S. tractor sales were down 10.9%, while combine sales fell 5.3% year-over-year in July 2026, according to sales data the Association of Equipment Manufacturers (AEM) released this week.”

“Canadian combine sales were 148, down 10.8% from 166 in July 2025. Canadian tractor sales were 1,708, down 7.8% from 1,852 in July 2025,” Bennink reported. “‘The July data reflects continued softness in the agricultural equipment market as farmers and equipment manufacturers navigate persistent economic uncertainty,’ said Curt Blades, senior vice president at AEM. ‘Farmers continue to face difficult decisions, and clear, consistent policy direction is essential to helping them plan, invest, and remain competitive.'”

“Total U.S. farm tractor sales for July 2026 were 15,985, down 10.5% from June 2025 with 17,938 sold,” Bennink reported. “Year-to-date, AEM reported 105,185 total farm tractors were sold as of July this year, down 13.1% from this time last year. Total farm tractor inventory began at 94,220 in July. Reporting data came from AEM members who provided sales numbers from their dealers through proprietary reporting programs.”

AgroLatam’s Marco Díaz Collins reported that “the most dramatic July decline came in four-wheel-drive tractors, a category closely associated with large-scale row-crop operations and significant capital commitments. U.S. sales totaled only 152 units, down 38.7% from 248 a year earlier. Through July, 4WD sales stood at 1,043 units, a 27% year-over-year decline.”

“That drop is especially relevant for the Corn Belt and other major production regions, where high-horsepower machinery is central to planting, tillage and precision agriculture systems,” Díaz Collins reported. “Weak demand suggests large operators are also scrutinizing replacement cycles and delaying purchases where possible.”

RFD-TV’s Marion Kirkpatrick reported that “Shaun Haney, host of RealAg Radio, joined us on Thursday’s Market Day Report to discuss the overall decline in farm equipment in the United States and Canada. In his interview with RFD News, Haney said the decline in large tractors suggests commercial-scale operators are pulling back on major equipment purchases.”

“Haney says producers on both sides of the border are increasingly holding onto equipment longer and managing repair and maintenance costs as they delay new purchases. Ultimately, he says a turnaround will depend on improved farm profitability and stronger producer confidence,” Kirkpatrick reported. “Lower interest rates could also encourage farmers to return to the new-equipment market, while Haney says a recent improvement in Canadian farmers’ sentiment offers some hope that capital investment could pick up later this year.”

Interest Rates Could Remain High in 2027, However

While lower interest rates could encourage farmers to return to the new equipment market, results from the latest Farm Journal Ag Economists’ Monthly Monitor show that’s unlikely to happen anytime soon.

AgWeb’s Tyne Morgan reported that “if you were hoping for a break on borrowing costs or input prices heading into 2027, the latest Farm Journal Ag Economists’ Monthly Monitor isn’t offering much comfort. The July survey shows the panel expects both to stay elevated, or even grow worse, putting fresh pressure on margins that are already stretched thin across the row-crop sector.”

“Out of the 15 economists that responded to the latest survey: 11 economists say they expect the average interest rate on ag operating loans to be slightly higher in 2027 than in 2026,” Morgan reported. “No economist is forecasting a decline of any size. 4 expect rates to hold steady.”

But “for all the concern over rates and input costs, the panel’s read on where the ag economy stands right now is more encouraging than it’s been in a while,” Morgan reported. “Fifty-six percent of economists say the current state of the U.S. ag economy is somewhat better off than it was just one month ago, and not a single respondent said conditions are worse off. Another 38% say things are unchanged, meaning the entire panel views the month-over-month trend as flat or improving.”