Farm and Garden Machinery Wholesalers NAICS 423820

Feb 6, 2026 - Used Values Rising as New Sales Fall

• 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.
• The Toro Company’s weaker fourth‑quarter and full‑year results highlight ongoing demand challenges across the broader garden machinery industry, particularly in the residential segment, HBS Dealer reported in December. The company’s 19% drop in quarterly net income and a 14% full‑year decline in residential sales reflect softer consumer spending on lawn equipment, an issue affecting many manufacturers reliant on mower and small‑equipment volumes. However, Toro’s ability to maintain margins, offset tariff pressures, and outperform expectations through its professional segment underscores a key industry trend: commercial and municipal buyers remain more resilient than retail consumers. Toro’s continued investment in productivity improvements and its acquisition of Tornado Infrastructure Equipment signal a strategic shift toward diversification and higher‑value industrial equipment. For the wider industry, Toro’s results reinforce a bifurcated market with residential demand under pressure, while professional and infrastructure‑oriented segments offer more stable growth and margin opportunities.

• Artificial intelligence presents opportunities and risks for distributors of farm and garden equipment and their customers, Farm Equipment reports. A focus group of dealers convened by FE saw AI as a tool to streamline operations, from helping overworked service technicians troubleshoot equipment problems faster to improving inventory management and triaging customer calls. These applications could significantly reduce downtime and enhance customer service in wholesale distribution. However, FE warns of risks tied to open-source AI, in particular the potential for sensitive dealership and customer data to be exposed or misused. Moreover, dealers asked about their use of AI emphasized the importance of maintaining the human touch in customer relationships, a cornerstone of a relationship business like farm and garden equipment distribution. Wholesalers must adopt policies that balance innovation with privacy protections and ensure AI complements, not replaces, the personal trust that drives long-term customer loyalty.
• 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.