Farm Equipment Sales Fall

Harvest is in full swing across Iowa and producers are tightening their belts on big-ticket machinery purchases. Reflecting broader economic headwinds across the Corn Belt, sales of agricultural tractors and combines dipped significantly in September compared to a year ago, according to new data from the Association of Equipment Manufacturers (AEM).

U.S. tractor sales dropped 16.4%, while combine sales slid 10.9%—a trend mirrored up north as Canadian tractor sales fell 15.1% and combine shipments plummeted 37.6%. Driven by compressed profit margins, high input costs, and elevated borrowing rates, local farmers and dealerships are feeling the squeeze of a softening North American equipment market.

While AEM’s latest market update highlights the sector-wide pullback, it underscores a clear reality for Iowa producers: major capital investments are being put on hold until crop prices and net farm income stabilize.