LUBBOCK, TX – Farmers are buying fewer new tractors and combines, but machinery costs per acre are expected to remain elevated into 2027 as repair, financing and insurance expenses stay high.
Terrain agricultural economist Matt Clark says sales of tractors over 100 horsepower through September are 27% below the 2015–2025 average. Four-wheel-drive tractor sales are down 32%, while combine sales are down 37%.
Clark says delaying new purchases can slow equipment-cost growth, but older machinery can require more repairs. Repair costs have increased at more than a 3% compounded annual rate since 2008, while general farm insurance costs have risen about 5% annually.
Financing is another pressure point. About 30% of farm machinery loans originated since the start of 2025 carry variable interest rates. Clark also says stronger equipment lending alongside weaker new sales may indicate more producers are turning to newer used machinery.
Terrain expects machinery costs per acre in 2027 to remain near or above 2026 levels.
Farm-Level Takeaway: Delaying new equipment purchases may not lower machinery costs if repair, insurance and financing expenses continue rising.