U.S. sales of tractors and combines continued to decline in September as low commodity prices and high production costs put additional pressure on farmers.
Tractor sales dropped 16% compared with September of last year, while combine sales were down 10% year over year.
The continued weakness in new equipment sales reflects broader financial challenges across the agricultural sector. Grain prices remain relatively weak, while farmers continue to deal with elevated costs for fuel, fertilizer, seed and other inputs.
Those conditions are prompting more producers to hold onto their existing machinery or look to the used equipment market rather than make major investments in new tractors and combines.
Demand for used farm machinery continues to strengthen as farmers search for less expensive alternatives. Dealers are also seeing increased business in their service and parts departments as producers choose to repair and maintain existing equipment.
For many farmers, extending the life of machinery represents a more economical option than purchasing new equipment at a time when farm margins are under pressure.
The shift is providing some relief for dealerships dealing with sluggish new equipment sales. Service departments are reporting strong activity, while demand for replacement parts has also increased.
However, parts availability remains a concern in some cases, potentially complicating efforts to keep older equipment operating.
The September figures continue a broader slowdown in the agricultural equipment market as producers remain cautious about major capital purchases while waiting for stronger commodity prices and improved farm profitability.