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The U.S. Farm Machinery & Equipment Market: Sales, Inventories, and Tariff Headwinds

The U.S. farm machinery market entered a deep downturn in 2025, with tractor sales falling 9.9% to 195,857 units and combine sales plunging 35.6% to 3,579 units. Manufacturer inventories shrank 20.8% to $5.72 billion, while dealer surveys showed over two‑thirds reporting double‑digit sales declines. Tariffs imposed in 2025 added $600 million in costs for Deere & Co. and cut CNH’s ag‑segment EBIT by nearly 50%, though a February 2026 Supreme Court decision may reverse those duties. Despite price stabilization, machinery prices remain above pre‑pandemic levels, leaving the sector vulnerable to grain price volatility and credit constraints.