Farm and Garden Machinery Wholesalers NAICS 423820

Mar 6, 2026 - 2026 Farm Machinery Sales

• The permanent federal tax changes enacted in 2025 create strong long‑term incentives for farmers to replace aging machinery, but the near‑term outlook for farm machinery sales remains mixed with high prices and farmers’ financial stress discouraging sales, Strip-Till Farmer reports. With 100% bonus depreciation now permanent, a higher Section 179 limit of $2.5 million, and a permanent 20% qualified business income deduction (QBI), farmers can fully expense major machinery purchases in the year of purchase. This structurally improves the economics of buying equipment and should support replacement demand once farm finances stabilize. Still, dealers expect new equipment sales to fall this year, and many report excess inventory, which may force discounting and pressure manufacturer margins. Dealers say tariffs are adding up to tens of thousands of dollars per machine and 89% expect price increases of 1-6% this year, with some anticipating double‑digit price hikes.
• In February, a bipartisan group of former USDA officials and past leaders of major farm associations warned Congress that current economic pressures and Trump administration policies could trigger a “widespread collapse” of US agriculture, The New York Times reports. In their letter, they cite rising input costs, disrupted export and domestic markets, labor shortages, and cuts to agricultural research and staffing as key threats undermining farm viability. They argue that tariffs and trade uncertainty have reduced global competitiveness for US crops, while the lack of a new farm bill leaves producers without policy stability or safety‑net improvements. The group is urging Congress to ease tariff burdens, expand international market access, restore research funding, and pass updated farm legislation. Their message underscores growing concern that without swift policy action, financial stress, bankruptcies, and structural decline could accelerate across US farming, weakening rural economies and long-term national food security.

• Rising used‑equipment prices and falling new‑equipment sales are creating an unusual split that directly affects farm machinery wholesalers heading into 2026, Farm Journal reports. With farmers facing financial pressure, extended trade cycles, and stubbornly high prices for new equipment, demand is shifting sharply toward used machinery. Auction activity is climbing as more producers, especially those under financial strain, liquidate entire fleets rather than just surplus items. Moreover, wholesalers face a tightening supply of late‑model machines, since fewer farmers are trading in newer equipment. This combination of strong demand for used units and shrinking late‑model supply is pushing used prices higher and making inventory acquisition more difficult and expensive for wholesalers. Meanwhile, weak new‑equipment sales and little expectation of manufacturer price cuts are limiting wholesalers’ ability to move new stock.
• Producer prices for machinery and supply wholesalers rose 7.8% in November compared to a year ago after rising 2.6% in the previous November-versus-November annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by farm and garden machinery and equipment merchant wholesalers shrank 1.5% year over year in November, while the average industry wage rose 1.6% over the same period to $32.23 per hour, down slightly from its October peak, BLS data show. Employment and wages at farm and garden machinery wholesalers moved in opposite directions in 2025 as companies looked to control labor costs.