Farm and Garden Machinery Wholesalers NAICS 423820

Jun 6, 2025 - Commercial Mowers Drive Rising Demand

• The lawn mower market is growing driven by investments in commercial mowers, according to a new report by market research firm Insight Partners. The market for lawn mowers is projected to reach $39.4 billion by 2031, up from about $ 26.4 billion in last year, a CAGR of 6.1% over the forecast period, per the report. Factors driving growth include rising spending on lawn maintenance, urban greenspace development, growing interest in residential gardening, and technological advancements such as the adoption of smart and automated lawn care equipment, particularly robotic lawn mowers. While residential mowers dominate the market, high investments in commercial lawn mowers by businesses and municipalities is driving significant market growth.
• The high cost of new farm equipment is leading many growers to shift their replacement strategies, with some opting to extend the lifespan of their current machines, while others are investing in late-model, low-hour used equipment through auction or dealer channels, Farm Equipment reports. Leasing activity also began increasing in the second half of 2024 as producers began exploring methods to reduce equipment costs. With farm incomes projected to be lower this year and prices for new machinery high, strong demand for used equipment is expected to persist. “Producers may take a wait-and-see approach in the first half of 2025, potentially delaying equipment upgrades as the spring planting season approaches,” Lucas Scheibe, an AgDirect territory manager in North Dakota told FE, adding “However, if policy and tax conditions remain favorable, improved commodity prices could bolster farm income and influence buying decisions."

• The Trump administration’s 50% import tariff on steel and aluminum – key inputs in farm machinery – threaten to push already high prices for farm machinery even higher, as manufacturers seek to recoup higher input costs by raising prices. Historical data from the 2018 trade war shows that similar tariffs led to a 78% increase in domestic equipment production costs, according to the Association of Equipment Manufacturers. Such cost increases could affect manufacturers and farmers alike, with farmers already facing significant financial pressures. Over the last three decades, the price of 200-hp tractors has risen by 287%, far outpacing inflation, while 300-hp tractors have seen a 275% increase. Trump’s metals tariffs imposed in March – along with other tariffs – could present new financial challenges for the agriculture industry, including depressing sales for farm machinery wholesalers as stressed farmers delay or forego new equipment purchases.
• Employment by farm and garden machinery and equipment merchant wholesalers shrank 5.2% in March compared to a year ago, while average industry wages climbed 8.1% over the same period to $31.20 per hour, according to the latest US Bureau of Labor Statistics data. Employment by distributors of farm and garden machinery has been falling since mid-2024 amid declining sales. Census Bureau data shows that sales dropped 1.4% year over year in February but ticked up 1.2% from January as planting season approached. Farmers continue to pull back on purchases amid high equipment costs and tariff uncertainty. The producer price index for machinery, equipment, parts and supplies rose 46% from April 2020 through April 2025, straining farmers budgets.