Farm Machinery Manufacturers
Industry Profile Report
Dive Deep into the industry with a 25+ page industry report (pdf format) including the following chapters
Industry Overview Current Conditions, Industry Structure, How Firms Operate, Industry Trends, Credit Underwriting & Risks, and Industry Forecast.
Call Preparation Call Prep Questions, Industry Terms, and Weblinks.
Financial Insights Working Capital, Capital Financing, Business Valuation, and Financial Benchmarks.
Industry Profile Excerpts
Industry Overview
The 1,000 farm machinery manufacturers in the US sell agricultural and farm machinery and equipment through dealers and distributors. Product categories include tractors, harvesting machinery (combines, balers), commercial turf/grounds care equipment (mowers), planting, seeding, and fertilizing machinery (sprayers, soil prep machinery), related attachments, and parts.
Sales Channel Dependent On Credit
Floor plan financing is a critical element for farm machinery sales.
Highly Seasonal Sales
Because farm machinery sales are tied to the agricultural calendar, sales are highly seasonal.
Industry size & Structure
The average farm machinery manufacturer operates out of a single location, employs 61-62 workers, and generates $37 million annually.
- The farm machinery manufacturing industry consists of over 1,000 companies, employs about 61,900 workers, and generates $37 billion annually.
- The industry is highly concentrated; the top 20 companies account for 71% of total industry revenue.
- Large US-based companies include John Deere, AGCO, and Alamo Group. Most large companies have global operations with significant sales from foreign countries.
Industry Forecast
Farm Machinery Manufacturers Industry Growth
Recent Developments
Jan 23, 2025 - Steady Prices Amid Declining Sales and Shipments
- Producer prices for farm machinery manufacturers rose nearly 1% in November compared to a year ago after rising 1.2% in the previous November-versus-November annual comparison, according to the latest US Bureau of Labor Statistics data. Producer prices have held relatively stable amid a sharp decline in shipments of farm machinery and equipment since August, Census Bureau data show. Employment by farm machinery manufacturers shrank 4.3% year over year in October, while average industry wages increased 5.5% over the same period to $31.42 per hour. Falling crop prices and rising input costs are causing US farmers to cut back on spending, sending the broader US agricultural sector into a tailspin.
- US sales of tractors in all classes declined 11.3% in December compared to a year ago, while sales of self-propelled combines sank 26.4% over the same period, capping a soft year for sales of farm machinery, according to the latest data from the Association of Equipment Manufacturers (AEM). Each month in 2024 tractor and combined sales underperformed their five-year average, according to AEM. Last year was a tough one for agricultural machinery manufacturers, as high interest rates and low crop prices caused farmers to hang on to old equipment and take out fewer loans for big purchases. Industry giants Deere and AGCO cut production at their plants and laid off workers in 2024 as dealers worked their way through a surplus of inventory, Agriculture Dive reported in December.
- US manufacturers have much to lose if a trade war erupts between the US and its largest trading partner Mexico, The New York Times reports. President Trump has vowed to slap 25% tariffs (or higher) on all goods from Mexico unless it stops the flow of migrants and drugs to the US. While Mexico depends heavily on trade with the US – exporting some 80% of its goods to America – it accounted for nearly 16% of overall US exports in 2022, according to the Office of the US Trade Representative. Tariffs on Mexico and China, another Trump target, would have widespread ramifications for manufacturers, making it more expensive to produce goods that use foreign components. And if other countries respond with retaliatory tariffs, it could also make it more expensive for manufacturers to export goods to foreign markets, according to Manufacturing Dive.
- Farm machinery giant John Deere is among those companies backing away from diversity, equity, and inclusion (DEI) efforts amid a backlash from conservatives, CNN reports. In July, the company announced it would no longer sponsor “social or cultural awareness” events, becoming the latest major US company to distance itself from DEI measures after being targeted by conservative activists. The company also posted a statement on “X” (formerly Twitter) saying it would audit all training materials “to ensure the absence of socially-motivated messages” in compliance with federal and local laws. In response, the president of the National Black Farmers Association, John Boyd, Jr., called for the resignation of Deere’s CEO and a boycott of the company. Deere’s DEI retreat followed retailer Tractor Supply’s announcement in June that it would withdraw its carbon emission reduction goals and eliminate jobs and goals focused on DEI.
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