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Repair Windows errors before they cause bigger problemsFix Now →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →Farm-equipment dealers faced a sharp inventory reversal after the buying surge of 2022: weaker crop prices and high borrowing costs made farmers more cautious, while machines ordered for stronger demand continued arriving. A May 2024 Reuters report documented Midwest dealers discounting equipment, pausing orders and sending some machines to auction. Newer data still point to pressure on farm finances and equipment sales, but do not establish how many unsold tractors dealers hold today.
Why did farm-equipment inventory build up?
The glut described in 2024 followed an unusually strong buying period. Deere and CNH had struggled to meet tractor demand during 2022, when farm income was at a record and pandemic assistance payments helped some farmers upgrade their fleets. Demand weakened from late 2022, and the purchases dealers and manufacturers had anticipated no longer materialized at the same pace.
In Reuters’ May 9, 2024 report, interviewed dealers and analysts pointed to lower crop prices and high borrowing costs as reasons farmers held back. That combination matters for a major purchase: reduced expected crop revenue can make a new machine harder to justify, while higher financing costs raise the expense of buying it.
Chris Tanner, a fourth-generation farmer in Norton, Kansas, told Reuters in 2024: “They’re heavily discounting combines and tractors — but after coming through a drought and experiencing poor prices we don’t have the money to spend.” The account captures why lower sticker prices alone did not necessarily restore demand.
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What happened to dealers carrying unsold machines?
Inventory costs could rise while sales slowed. Manufacturers had offered dealers free floor-plan financing for a limited period, according to the Reuters report. Once that period ended, dealers paid interest on unsold equipment. A consultant cited a 7.5% floor-plan rate as an example in 2024; it was not a universal or current rate.
Dealers described several responses to that pressure:
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- Discounts: Lower prices were used to attract buyers and move stock. AHW retail location manager Aaron Rogers told Reuters, “If you can get a good interest rate, that’s what’s driving the market right now.”
- Fewer new orders: Some dealers paused or reduced orders to avoid adding machines to already-full lots.
- Auctions: Some equipment went to auction when the cost of carrying it became difficult to absorb. Equipment-dealer sales consultant Casey Seymour said, “Some of the stuff that is being put to auction is because dealers can’t afford to keep the floor plan.”
Reuters reported Sandhills Global figures showing that, in an April 2024 snapshot, U.S. high-horsepower tractor inventory was nearly 107% higher year over year and combine inventory was 17.63% higher. Josh Gruett of Waupun Equipment told Reuters his dealership’s inventory had risen 30%–35% since the end of 2023; that was one dealer’s account, not a representative national survey.
The market for particular machines could also look different at auction than at retail. Sandhills Global sales manager Mitch Helman told Reuters in 2024: “For planters there’s a 70% gap between auction and retail and that’s insane. A spread this high has not been observed since May 2015.” This was an attributed observation about planters at that time, not a general price rule for all equipment.
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Was the glut the same everywhere?
No. Reuters’ reporting focused largely on Midwest dealers and the grain-belt row-crop economy, where tractors, combines and planters are central purchases. The report distinguished that market from specialty-crop equipment. TractorHouse manager Ryan Dolezal said of specialty-crop equipment compared with Midwest markets: “We do not see the inventory levels issues like we do in Midwest markets.” The report does not establish that every region or equipment category experienced the same buildup.
Is farm-equipment inventory still high in 2026?
There is evidence of continued financial and sales pressure, but the available indicators measure different things and cannot answer the inventory question directly.
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| Indicator | What it says | What it does not establish |
|---|---|---|
| USDA farm-income forecast, September 3, 2026 | USDA ERS forecast inflation-adjusted net farm income of $158.4 billion in 2026, 5.5% below 2025. If realized, it would remain above the 2006–25 inflation-adjusted average. | Farm income is not a count of unsold dealer machines. |
| USDA net cash farm income forecast, September 3, 2026 | USDA forecast $176.4 billion for 2026, down 2.5% from 2025 after inflation, despite a 0.4% nominal increase. | Net cash farm income is a different measure from net farm income and does not measure equipment stock. |
| AEM U.S. retail sales, January–May 2026 | Member-company reports showed 70,779 farm tractors sold, down 12.4% year over year, and 1,066 self-propelled combines, down 14.6%. | These preliminary retail-sales figures are not every transaction and do not show dealer inventory levels. |
| Deere outlook, 2026 | Deere expected large agricultural-equipment demand in the U.S. and Canada to decline compared with 2025, citing elevated farm input costs, commodity-price volatility and market uncertainty. | This is one manufacturer’s outlook, not an independent whole-market inventory survey. |
Taken together, these figures support a cautious reading: financial conditions and new-equipment sales remained challenging in 2026, but they do not show whether the specific dealers interviewed in 2024—or dealers nationally—still had unusually high stocks. Lower sales can coincide with high inventory, but sales data alone cannot prove it.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How certain are the farm-income figures?
USDA’s September 3, 2026 release included the first national estimate for 2025 and revised its 2026 forecast. These figures are estimates and forecasts, not final accounts. USDA says its farm-income forecasts and first estimates had a 12.5% mean absolute difference over 1981–2020; the upward revision to the 2025 net-farm-income estimate was 5.2% versus the most recent forecast. The historical difference describes prior revisions, not a forecast error already known for 2026.
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For people assessing equipment demand, the practical distinction is important: farm-income estimates help describe farmers’ financial backdrop, while sales reports track purchases and dealer inventory data would be needed to establish how much equipment is actually sitting unsold.
Where can buyers check used equipment?
Buyers comparing availability can browse new and used farm equipment listings. Listings and auction prices can help with individual comparisons, but they are not a complete count of dealer inventory or a guarantee that every asking price reflects a completed sale.
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