REGINA, Saskatchewan, April 3 - Sales representatives for farm equipment manufacturers are concluding a bleak stretch of farm shows across the continent as growers ready fields for spring planting but largely forgo major new purchases.
Exhibitors say farmers have not entirely stopped buying, but many are sharply cutting back and bypassing high-priced items because of steep machinery, fertilizer and fuel costs alongside weaker crop prices due to a global grains overhang.
Standing among a display of his company’s rockpickers, harrows, rippers and other yellow-painted implements at Canada’s Farm Show in March, Chad Jones of manufacturer Degelman Industries summarized the shift in purchasing behavior: "They might not buy the million-dollar combine, but they’ll buy a $100,000 implement."
Data from the Association of Equipment Manufacturers (AEM), which represents major North American industry players, show that while some spending continues, it is materially lower than in prior years. The group told Reuters that sales of large items such as tractors and combines in the United States declined by between 30% and 40% in March compared with the same month a year earlier.
Farm machinery sales have been squeezed as farmers’ financial positions come under pressure amid higher input costs. Tariff actions by the U.S. administration have intensified production expenses for already costly machines like tractors and combines - commonly referred to on the farm as "big iron" - which are built with substantial amounts of steel and frequently include imported components.
The current U.S. policy approach is reported to include plans for a 25% tariff applied to the value of finished imported goods that contain steel and aluminum rather than limiting the tariff to the metals content alone. That revision would likely increase the price of affected finished products. At the same time, goods that are predominantly constructed from steel and aluminum - which include many tractors and combines - remain subject to the existing 50% tariff that has been in place for nearly a year.
During its most recent quarterly earnings call, a John Deere official said the company estimates that tariffs will cost it $1.2 billion in 2026, and that not all of 2025’s tariff costs had been passed through to farmers.
Last Friday, President Trump urged manufacturers to reduce prices to help farmers. But for equipment makers and farm groups, tariff policy remains a central issue. Kip Eideberg of the AEM said the clearest path to lower machinery costs would be "to significantly scale back on the tariffs that are hitting the manufacturers, and the retaliatory tariffs that are hitting farmers."
Trade tensions have also weakened U.S. crop export demand, notably with China absent from the U.S. soybean export market for months, contributing to depressed North American crop prices and large inventories. Those market conditions have amplified concerns about farm profitability.
"They were looking at profitability being very tight to even potentially negative for the upcoming growing season, and this has led to slower decisions on equipment replacement," said Leigh Anderson, an economist at Farm Credit Canada. As a result, farmers have postponed planned equipment purchases and are extending the service life of older machines.
The subdued interest in big equipment was visible at the Regina show. Although attendance exceeded 5,000 people, many of the large machinery displays saw only limited engagement from visiting farmers, with few inspecting tractors and other heavy machines closely.
Reflecting the broader behavioral shift, Eideberg of the AEM said, "It’s fair to characterize it as purchasing behavior shifting from wants to needs." He emphasized that once fertilizer and machinery production costs increase, they are difficult to reduce, which is why the AEM is advocating for tariff reductions as immediate relief that could materially help both farmers and manufacturers.
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