Through August 2026, tractor and combine sales are still down year over year in both the United States and Canada, USDA’s latest farm-income forecast shows weaker inflation-adjusted income for 2026, and the used-equipment picture splits between tractors and combines. None of that establishes a year-end price drop or a recovery. For most operations, the buy-now-or-wait decision depends on the farm’s own equipment needs and finances, not on the national sales trend.
What the latest sales numbers show
The most recent sales figures come from the Association of Equipment Manufacturers (AEM), in a release published September 11, 2026. Each figure compares August 2026 with August 2025. These are single-month comparisons, not year-to-date totals, and they do not predict December sales.
| Market (August 2026 vs. August 2025) | Agricultural tractors | Combines |
|---|---|---|
| United States | Down 8% | Down 4% |
| Canada | Down 10.9% | Down 42.6% |
The two countries should not be averaged together. Canada’s combine decline is far steeper than the U.S. figure for the same month, and a single month can swing on delivery timing. Use the table as a snapshot of direction, not a measure of the full year.
AEM’s Senior Vice President Curt Blades said the market “continues to reflect the challenging environment facing farmers today,” and pointed to unresolved trade questions adding uncertainty as producers prepare for harvest. That is an industry spokesperson’s characterization, not an independent forecast.
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What USDA’s farm-income forecast adds
The USDA Economic Research Service (ERS) updated its farm-income forecast on September 3, 2026. Its figures are forecasts and can be revised. The nominal change is the dollar change before inflation; the inflation-adjusted change strips inflation out. Both matter for equipment budgets, and they often point in different directions.
Net farm income and net cash farm income
| ERS measure, calendar year 2026 | Forecast | Change from 2025, nominal | Change from 2025, after inflation |
|---|---|---|---|
| Net farm income | $158.4 billion | Down $4.3 billion (2.6%) | Down $9.1 billion (5.5%) |
| Net cash farm income | $176.4 billion | Up $0.7 billion (0.4%) | Down $4.6 billion (2.5%) |
The two measures differ in what they count. Net cash farm income includes cash receipts, farm-related income such as federal payments, and cash expenses. Net farm income adds noncash items such as inventory changes and economic depreciation. A farm’s cash position can therefore look better than the headline net farm income figure suggests, or the reverse.
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Average income for qualifying farm businesses
For farm businesses that qualify under ERS’s definitions, average net cash farm income is forecast to rise 7.1% to $121,700 per farm in nominal dollars. Six of nine ERS farm resource regions are forecast to see an increase. Crop-specialized businesses other than specialty crop farms are generally forecast higher, while every animal and animal-product specialization is forecast lower. This is an average across a defined group, so an individual operation may land well above or below it.
Farm-sector debt and solvency
ERS forecasts farm-sector debt to rise 4.6% in nominal terms to $605.1 billion in 2026. The debt-to-asset ratio is forecast at 13.54%, compared with 13.34% in 2025, and ERS says solvency is expected to worsen as debt grows faster than assets or equity. These are sector-level, market-value estimates. They are not a substitute for an individual farm’s balance sheet, which is typically kept on a historical-cost basis.
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Are tractor prices coming down?
The most recent used-market data cited here is from December 2025. The University of Illinois farmdoc daily analysis, published in February 2026, summarized Sandhills Global data. These are lagged observations, not October 2026 quotes, so they show where the market was at the end of 2025 rather than where it sits today.
| Measure, year over year, December 2025 | Used tractors | Used combines |
|---|---|---|
| Inventory | Down 15.5% | Down 9.5% |
| Asking prices | Down 5.85% | Down 0.37% |
| Auction values | Down 2.54% (despite a 2.39% monthly increase) | Up 7.47% |
Used tractors were weaker on all three measures, while used combines held up on auction values. The two categories do not move in lockstep, so a tractor-price argument should not be carried over to combines. The data does not show whether tractor prices have since fallen further or recovered, and nothing here supports a call on where they go by year-end.
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Financing: what the October 2026 FSA rates mean
The USDA Farm Service Agency (FSA) lists two loan rates for October 2026:
- Direct operating loans: 5.375%
- Direct farm-ownership loans: 6.250%
These are specific FSA program rates for the month, not a market-wide equipment-finance rate. FSA states that eligible producers may use its loans to purchase equipment. Eligibility is not guaranteed by the rate table, and rates reset over time, so confirm the current rate and your eligibility with your local FSA office before building a budget around them.
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Should you buy farm equipment now or wait?
No single machine or buy date is supported by the evidence. Sales are soft, farm income is mixed, and used values diverge, but none of that tells an individual operation whether to buy this quarter. Work through these questions in order:
- Capacity and reliability need. Is the current machine failing, limiting harvest timing, or costing more in repairs than a replacement would? If so, delay has a real cost, regardless of the market.
- Total ownership cost and cash flow. Compare purchase price, financing cost, insurance, repairs, and fuel over the years you expect to keep the machine. Test the payment against a weaker year, not only an average one.
- New versus used availability and condition. Used inventory is down on both tractors and combines in the late-2025 data, so availability of a specific model and hours may be the binding constraint. Inspect condition and service records before comparing asking prices.
- Resale and auction value risk. If you may need to sell in a few years, consider that tractor values were weaker on the cited measures and combine auction values were firmer. Build a conservative resale assumption for each category.
- Whether the financing is available to you. A low published rate only helps if your operation qualifies for that program. Get a written quote from a lender or FSA before comparing machines.
A farm with a clear need and a sound cash position can buy at any point in the cycle. A farm without one can usually wait without much cost, but waiting is only a decision if the failing or aging equipment can keep running safely through the season.
What to check before year-end
- Later AEM monthly releases. The sales figures above stop at August 2026. Check AEM’s subsequent monthly reports for U.S. and Canadian tractor and combine trends.
- USDA ERS’s next farm-income and wealth forecast, scheduled for December 2, 2026. It may revise the 2026 figures in this outlook.
- FSA’s rate schedule for the following month. The rates above apply to October 2026 only.
Source names: AEM’s September 11, 2026 release; USDA Economic Research Service farm-income forecast updated September 3, 2026; USDA Farm Service Agency October 2026 loan rates; University of Illinois farmdoc daily, February 2026, citing Sandhills Global data.
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