Tractors in Dealer LotRecent data shows that farmers are continuing to pull back on new equipment purchases this year, with tractor sales down 18%, though combine sales ticked up slightly (up 3.9%), according to the Association of Equipment Dealers. Farm income is projected to fall by $1.2 billion this year, according to the USDA Economic Research Service, leaving less room in the budget for big-ticket purchases. Adding to the pressure, ongoing geopolitical conflicts have disrupted oil supply lines and driven up inflation, while tariffs on steel and machinery components have kept manufacturing costs elevated.

There is reason for cautious optimism, though. The Trump administration recently cut tariffs on finished agricultural equipment from 25% to 15% for at least a year, a move expected to bring some relief and more predictability to prices for farmers, dealers and manufacturers alike. Freight costs are easing too, with fuel prices coming down and dealers reporting that competitively priced units are starting to move again.

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