Over 70% of ag dealers report excess used inventory

Agriculture equipment dealers are overrun with used inventory as late-model machines prove especially problematic while farm financial stress continues. 

More than 70% of agriculture equipment dealers reported excess used inventory in the second quarter, according to an Aug. 27 report by heavy-equipment research firm IronAdvisor Insights, which surveyed dealers representing 150 locations.  

While an improvement from a little over 80% in Q1, agriculture equipment dealers continue to feel the effects of low commodity prices and other challenges facing farmers, IronAdvisor Director of Research Jarrett Harris told Equipment Finance News.  

“The financial wellbeing of the average row crop producer is extremely challenging right now, so there is a reticence to make any purchases there that we haven’t seen in some time,” he said. “And that continues to weigh on transactions, which weigh on pricing and the dealers still getting out from under a lot of inventory.” 

Meanwhile, more than 70% of dealers said used retail prices were down year over year in Q2, according to the report. Roughly 45% expect prices to continue falling in Q3, while 45% expect them to stay the same.  

Surveyed dealers said selling late-model equipment has been a major challenge, noting that it’s too expensive for many customers and absent of new equipment incentives like 0% financing.  

Customers are also “very unwilling to take on additional debt,” a John Deere dealer stated in the report.  

“We have even gone to customers with proposals that keep their payments the same, and even though they know it is a good deal, they don’t want the additional debt,” the dealer said.  

Staying alive  

Agriculture dealers are anticipating 2026 to be another tough year due to concerns over farm financial stress and suboptimal inventory mix, according to the report. In fact, not a single surveyed dealer expects increased sales in 2026, and nearly 40% expect sales to decrease.  

Many dealers are selling at lower margins and even taking losses in some cases to stay afloat, Harris said. 

“You’re seeing dealers get more aggressive in their retail pricing, choosing to sell things locally at a loss rather than take it to auction because that will generate the parts and service revenue, at least theoretically, over time,” he said. 

Dealers are also using inventory management tools to optimize their fleets and enhance decision-making, Harris said. 

Ultimately, dealers are working to find the right balance between aggressive retail pricing and offloading via auction to survive challenging market conditions, Harris said. 

Several dealers echoed a similar sentiment in the report. 

“The question is, do you auction and clear the books or carry it and pay interest? My guess is 60% of dealers will probably liquidate and 40% will carry,” an independent dealer stated. 

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