As the 2025 harvest season approaches, farmers across the U.S. are grappling with a critical decision: is now the right time to invest in new machinery? With equipment prices trending downward, government insurance checks being cashed, and the fall harvest looming, the current market dynamics present a unique opportunity. For those looking to upgrade their fleets, purchasing a well-vetted machine at auction before the fall could be the smartest move. Here’s a closer look at why this might be the perfect moment to act—and why auctions could be the key to securing a deal.
The Current State of Equipment Prices
The farm equipment market in 2025 is undergoing a significant shift. After years of high demand and supply chain disruptions driving up prices, an oversupply of used machinery is pushing values down. According to industry reports, auction prices for used equipment, particularly late-model tractors and combines, are approaching historic lows. For instance, a 2020 Class 8 combine that once cost $450,000 can now be found at auction for significantly less, sometimes as low as $380,000 with favorable financing options like 1.9% interest for six years. This softening of prices is largely due to falling commodity prices, high input costs, and tighter farm profits, which have reduced demand for new equipment and flooded the market with used inventory.
Dealers, facing swollen inventories, are motivated to clear their lots. Many are resorting to liquidation auctions to move equipment quickly, a trend not seen in such volume since 2014–2020. Auction values for planters, for example, have seen a “huge decrease” month over month, with spreads between auction and retail prices as high as 70% in some cases. This creates a buyer’s market, particularly for farmers who can act swiftly.
Timing with Harvest and Insurance Checks
The timing couldn’t be better for farmers eyeing new equipment. With the fall harvest season approaching (typically August to December), securing machinery now ensures it’s ready for the field when it matters most. Buying ahead of the peak season also aligns with the arrival of government crop insurance checks, which provide a financial cushion for many producers. These payments, part of programs like Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC), help farmers cover losses from low commodity prices or yield variability, freeing up cash for capital investments.
For farmers receiving these checks, the influx of funds can offset the cost of a machinery purchase, especially in a market where prices are softer. Additionally, tax incentives, such as deductions for equipment purchases and associated costs like interest and depreciation, further sweeten the deal. Farmers can use these financial tools to justify upgrading now rather than waiting for an uncertain future.
Why Auctions Are the Best Bet
While dealerships offer reliable options, auctions are emerging as the go-to avenue for securing quality equipment at a discount. The surge in farm auctions (driven by retirements, financial strain, and dealers offloading excess inventory) has created a wealth of opportunities. Auction companies report a busy spring and summer in 2025, with more sales scheduled through the fall. Unlike retail, where asking prices often lag behind market shifts, auction values reflect real-time demand, making them a more accurate gauge of value.
Well-vetted machines at auction—those with documented maintenance histories, low hours, and desirable build codes—are particularly attractive. For example, a late-model Case IH 2388 combine recently sold for $54,000 at a retirement auction, a fraction of its original cost. Online platforms have made it easier than ever to access these auctions, offering filters to narrow down equipment by brand, condition, and region. Farmers can set alerts, track items, and bid from the comfort of their homes, eliminating the need to travel.
However, buyers must exercise caution. Vetting equipment is critical—check for service records, inspect for wear, and verify hours to avoid costly repairs. Auction data emphasizes the importance of using real-time comparables to ensure fair pricing. Bidding wars can drive up costs, especially for high-demand items like combines before harvest, so setting a budget and sticking to it is essential.
Other Considerations: Interest Rates and Technology
While equipment prices are low, high interest rates remain a concern. Rates as high as 7.5% on dealer floor plans are pushing sellers to auction equipment rather than hold unsold inventory. However, some auctions and dealerships are offering low or zero-percent financing deals to move machinery, which can offset borrowing costs. Farmers should also explore financing options like operating leases or equipment loans, which may offer flexibility for cash-strapped operations.
Another factor is the rapid advancement of technology. New machinery in 2025 often includes AI-driven features, GPS-guided systems, and fuel-efficient engines that can reduce input costs by 10–20%. However, older equipment can often be retrofitted with upgrade kits or precision technology, offering similar benefits at a lower cost. For farmers not needing the latest tech, a well-maintained used machine from an auction can deliver comparable performance without the premium price tag.
Risks and Alternatives
Despite the opportunities, risks remain. The ag economy is projected to face continued challenges in 2025, with net farm income forecasted at $110.4 billion, down from $156 billion in 2023. Low commodity prices and high input costs could limit financial flexibility, making it critical to avoid overpaying. Some farmers may opt to delay purchases, hoping for even lower prices in 2026, but this carries the risk of missing out on current deals or facing unexpected repairs on aging equipment.
Alternatively, farmers can consider renting equipment or investing in repairs to extend the life of existing machinery. Older equipment, while less efficient, can be cheaper to maintain and insure, especially for smaller operations. Nebraska Extension economists note that a 2014 tractor and 2015 planter, for example, can have lower ownership costs per acre compared to newer models, though fuel efficiency and repair costs must be weighed carefully.
The Bottom Line
For farmers with the capital, bolstered by insurance checks or tax incentives, 2025 presents a rare window to buy machinery at reduced prices. The combination of low auction values, impending harvest needs, and available financing makes now an opportune time to act. Auctions, in particular, offer access to well-vetted, late-model equipment at prices that retail can’t match, provided buyers do their homework. As Casey Seymour of the Moving Iron podcast notes, “If you have the money, you’re going to be able to get some bargains” through the end of 2025.
With the ag economy in flux and auctions heating up, farmers who move quickly and strategically can position themselves for success in the upcoming season. Whether it’s a combine to streamline harvest or a tractor to boost efficiency, the right purchase now could pay dividends for years to come. So, scour those auction listings, verify equipment condition, and get ready to bid. Fall 2025 could be your moment to strike.