Farm Machinery Manufacturers NAICS 333111

Sep 23, 2025 - More Farmers Buying Used

• 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.
• Concerns over the high cost of new farm equipment are leading many growers to shift their replacement strategies, with some opting to extend the lifespan of their current machines, while others are investing in late-model, low-hour used equipment through auction or dealer channels, Farm Equipment reported in March. Leasing activity also began increasing in the second half of 2024 as producers began exploring methods to reduce equipment costs. With farm incomes projected to be lower this year and prices for new machinery high, strong demand for used equipment is expected to persist. “Producers may take a wait-and-see approach in the first half of 2025, potentially delaying equipment upgrades as the spring planting season approaches,” Lucas Scheibe, an AgDirect territory manager in North Dakota told FE, adding “However, if policy and tax conditions remain favorable, improved commodity prices could bolster farm income and influence buying decisions."

• 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.
• 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.