Economic Trends Impact Farm Equipment Purchases in 2025

By Andi Anderson

Farmers planning equipment purchases in 2025 must consider economic pressures such as rising machinery costs, tight margins, and high input expenses. While demand for used equipment may grow, new machinery sales could slow.

Rising Equipment Costs

Since 1990, new farm equipment prices have increased at double the rate of inflation. A 200-horsepower tractor now costs 287% more, making affordability a concern for many farmers.

Tight Margins and High Input Costs

Crop prices fluctuated in 2024, with corn projected at $3.90 per bushel and soybeans at $10 per bushel in 2025/26. Meanwhile, input costs like seeds, fertilizers, and fuel have increased by 37.5% since 2011, squeezing farm profits.

Interest Rates and Net Farm Income

Interest rates remain high, with only a slight expected drop in 2025. Net cash farm income is projected to decline by nearly 20% from 2023 to 2024, making capital preservation a priority.

Used vs. New Equipment

Due to tight budgets, farmers may prefer used equipment over new machinery. Auction markets may also see increased activity, offering competitive prices for used farm machinery. However, new technology and precision agriculture tools could still attract some buyers.

Outlook for 2025

Farmers must assess their financial position before making equipment investments. While economic conditions may limit new purchases, careful planning can help them navigate these challenges effectively.

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