Farm Machinery Manufacturers NAICS 333111

Jan 23, 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.
• Leading indicators for the farm sector’s financial health all show elevated risk, according to the latest report from the Rural and Farm Finance Policy Analysis Center. The report tracks 14 financial indicators organized in four classes: Farmer and banker sentiment; Farm income and balance sheet health; Farm machinery market dynamics; and Credit quality. The risk rating (on a 1-10 scale, with 1 being low risk and 10 high risk) is 6.2. The farm machinery market showed the biggest signs of deterioration, with a risk rating of 5.7, while farm income and balance sheet health, and credit quality carry a risk rating of 5.8 each, and farmer and banker sentiment at 5.9. The forecast shows a decline in net cash income for the two crop farm business types: a 1% decline for specialty crops farm businesses and a 14.8% drop for corn farm businesses.

• The high price of new farm machinery is driving farmers to the used equipment market, resulting in falling sales for makers of new agricultural machinery, The New York Times reports. The list price for new tractors has soared at least 60% over the past eight years, according to the University of Illinois Extension, with the price of some models more than doubling. Moreover, US farmers are struggling with low crop prices for corn, and soybeans, and rising prices for inputs like seed and fertilizer. Industry bellwether John Deere in September reported a sales drop and that high tariffs on steel and aluminum have cost the company $300 million so far, with nearly another $300 million expected by the end of 2025. Losses are leading to belt tightening, with Deere laying off 238 employees at factories in Illinois and Iowa this summer, according to NYT.
• Producer prices for farm machinery and equipment manufacturers rose 1.9% in September compared to a year ago to a record high, after posting a flat previous September-versus-September annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by agricultural implement manufacturers continues to shrink, falling 4.1% year over year in August, while average industry wages at agricultural, construction, and mining machinery manufacturers declined 4.8% over the same period to $29.82 per hour, BLS data show. High prices for farm machinery and the struggling US farm economy have caused farmers to cut back on spending for new equipment leading to layoffs at some companies.