LUBBOCK, TX – According to the latest USDA United States Ag Tractor & Combine Report from AEM, equipment retail sales remain soft through July 2025. Two-wheel-drive (2WD) farm tractor sales dropped 4.1%, with 17,366 units sold in July versus 18,104 units in July 2024. Year-to-date, sales fell nearly 9.4% to 118,924 units, down from 131,204.
Sales of 100+ horsepower 2WD tractors plunged 29.3% year-over-year, while sub-40 HP units declined 1.7% and mid-range (40–100 HP) tractors were nearly flat with a modest 0.8% gain.
Four-wheel-drive (4WD) tractor sales were even weaker—down 40.2% in July and 38.8% year-to-date, with just 248 units sold. Combine sales followed the downward trend, falling a steep 43.7% in July and 43.4% year-to-date.
These declines take place amid structural pressure on farming margins, elevated interest rates, and uncertainty over input costs—factors that continue to curb demand for major capital investments. Despite optimism for 2025 as a turning point earlier this year, equipment volumes remain far off pre-COVID boom levels.
AEM members and farm equipment dealers are watching closely for improving farm cash flow and stabilizing commodity markets, which will be key drivers for renewed equipment demand heading into 2026.