Farm Machinery Manufacturers NAICS 333111

Mar 23, 2026 - Farmer-Driven Innovation

• Tight farm budgets are pressuring ag equipment sales, as farmers delay purchases, turn to leasing, or buy used equipment to manage costs, Farm Progress reports. Despite this, producers still prioritize equipment investments, especially when upgrades deliver reliability, efficiency, and measurable productivity gains. To encourage sales, farm machinery manufacturers are innovating with input from farmers. Farm Progress reports that companies like Case IH and John Deere are closely collaborating with producers to design equipment that meets real-world needs, focusing on durability, ease of maintenance, fuel efficiency, and versatility. At the same time, demand for advanced technology, such as data-driven tools that improve yields and reduce labor, is growing, as farmers seek solutions that directly impact profitability. Manufacturers that incorporate direct farmer feedback into R&D are better positioned to align products with what customers are willing to pay for in a constrained market.
• 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 reached a new high in November, rising 1.8% compared to a year ago, after rising 0.8% in the previous November-versus-November annual comparison, according to the latest US Bureau of Labor Statistics data. Employment by agricultural implement manufacturers continues to shrink, falling 1.2% year over year in November, while average industry wages at agricultural, construction, and mining machinery manufacturers declined 4.9% over the same period to $30.05 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.