Total farm tractor sales down 11.9% YoY in May

Even during a sustained slowdown, agricultural equipment dealers are aiming to be proactive and manage their inventory to ensure success. 

The used agricultural equipment market needs a more graceful and deliberate approach to the sales and financing processes, especially as pandemic-era market conditions fade, Ben Freidhof, used ag acquisition and remarketing manager at AGCO dealer Ziegler Ag, said during a June 24 Tractor Zoom webinar. 

“Two years ago, if you had it, it sold, so we all got a little bit lax on our reconditioning, our promotions and our repricing,” he said. “Our [used equipment] team is trying to be more proactive on monthly repricing meetings, going out to each location on a regular cadence, checking the quality, checking for lot rot, working with the shops and make sure we have our best foot forward.” 

Sales teams often focus on trade values instead of the overall trade value difference when selling used equipment. Many struggle to shift their mindset from controlling pricing to building deals based on true value for the customers and for the dealership strategy, Freidhof said. 

“We can work through that number, and we’re all working together,” he said. “It comes down to the trade value for the trade difference, not necessarily the trade value, if you approach correctly.” 

Ag market slowdown 

The approach remains critical as auction supply and prices continue to decline. Andy Campbell, director of insights at Tractor Zoom, offered these updates during the webinar: 

• Combine supply fell slightly year over year, and auction prices softened; 

• Row crop tractor supply increased 11% YoY, and auction prices dropped 15%; 

• Four-wheel-drive tractor auction supply spiked 31% YoY, and auction prices declined; and 

• Sprayer supply at auction remained flat despite inventory age tripling, and auction prices fell 15% YoY. 

Most of the market has reached or is nearing the bottom, though some segments may decline further, Freidhof said. And it’s not likely to change quickly.  

“We might stay here and kind of just jig along the bottom of the river till the end of 2026 unless something drastic changes, a political event, drought somewhere, or we get a big bump in crop prices, etc.,” he said. “I don’t see anything there to pull us out of this thing before then, until we get the inventory issues behind us.” 

Ag equipment sales plummet 

Meanwhile, demand for new farm equipment dropped again across several segments in May, according to the Association of Equipment Manufacturers’ (AEM) May 2025 United States Ag Tractor and Combine Report. By segment, AEM reported: 

Total farm tractors 

• May 2025: 21,192 units sold, down 11.9% YoY; 

• YTD May 2025: 80,332 units sold, down 12.8% YoY; and 

• Beginning inventory: 112,303 units. 

2WD farm tractors 

• Under 40 HP 

• May 2025: 14,898 units sold, down 10.9% YoY; 

• YTD May 2025: 53,379 units sold, down 11.2% YoY; and 

• Beginning inventory: 71,766 units. 

• 40 to less than 100 HP 

• May 2025: 4,696 units sold, down 6.4% YoY; 

• YTD May 2025: 18,768 units sold, down 9.4% YoY; and  

• Beginning inventory: 30,815 units. 

• More than 100 HP 

• May 2025: 1,422 units sold, down 30.1% YoY; 

• YTD May 2025: 7,181 units sold, down 25.6% YoY; and 

• Beginning inventory: 9,012 units. 

• Total 2WD tractors 

• May 2025: 21,016 units sold, down 11.6% YoY; 

• YTD May 2025: 79,328 units sold, down 12.3% YoY; and 

• Beginning inventory: 111,593 units. 

4WD farm tractors 

• May 2025: 176 units sold, down 39.3% YoY; 

• YTD May 2025: 1,004 units sold, down 37.8% YoY; and 

• Beginning inventory: 710 units. 

Self-propelled combines 

• May 2025: 317 units sold, down 20.9% YoY; 

• YTD May 2025: 1,253 units sold, down 43.3% YoY; and 

• Beginning inventory: 1,065 units. 

The slowdown in new equipment sales stems from issues in the used market and adds to the importance of flushing out old equipment, Benet Snyder, used equipment manager at John Deere dealer Van Wall Equipment, said during the webinar. 

“Dealers are being frugal, just like the farmers are, and if they’ve got too many used of whatever segment, they’re going to sell less new until they get those used cleaned up,” he said. “If something comes along that we can clean up some of these used, then we can start selling more new [equipment].” 

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