Farm Machinery Manufacturers NAICS 333111

Nov 23, 2025 - Tech Sells Tractors

• When purchasing a new tractor farmers are giving preference to those that come with or are compatible with their preferred technology platform, Successful Farming (SF) reports. Moreover, the ability to use a preferred platform is nearly as important as price and condition when it comes to purchasing a new farm machine. For machinery manufacturers, this is a significant shift. In today’s market, OEMs (like Deere or Case IH) and third-party precision-tech firms (like Ag Leader) must navigate a more fragmented and integrated market. Companies that offer interoperable or flexible systems may gain traction, while those with heavily proprietary tech risk losing price-sensitive customers. The demand for tech-savvy machines could reshape manufacturers’ R&D priorities, product positioning, and dealer strategies. Going forward, farmers are likely to commit to one system, whether that involves sticking with a single manufacturer or a preferred third-party solution, according to SF.
• 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 1.3% in August compared to a year ago, after posting a flat previous August-versus-August annual comparison, according to the latest US Bureau of Labor Statistics data. While down slightly from their peak in May, producer prices remain at historically high levels. Employment by agricultural implement manufacturers continues to shrink, falling 5.1% year over year in July, while average industry wages at agricultural, construction, and mining machinery manufacturers declined 6.4% over the same period to $29.50 per hour, BLS data show. High prices for farm machinery and the tough farm economy have caused US farmers to cut back on spending for new equipment leading to layoffs at some companies.