The farm machinery market in 2025 is a buyer’s haven, with auctions presenting farmers a prime chance to acquire relatively new, low-hour equipment at substantial discounts. Depressed machinery values, driven by a confluence of economic pressures, have flooded the market with high-quality used machines, but this opportunity may be short-lived as recovery signals emerge. With potential tariffs poised to inflate the cost of new equipment, farmers should turn to auctions to secure low-hour machines at a fraction of the cost. Here’s why this is the moment to act, and how to seize it.
The Perfect Storm: Why Machinery Prices Are Depressed
A combination of economic factors has pushed farm machinery prices to historic lows, creating an oversupply of equipment and dampening demand. Since mid-2024, declining crop prices have squeezed farmers’ budgets, limiting their ability to invest in new machinery. Iron Solutions reports that “falling crop prices have left farmers with less income to invest in new machinery, leading to a buildup of unsold inventory.” Economic uncertainty, fueled by low commodity prices and reduced yields due to dry conditions in 2024, has made farmers cautious, further softening demand. The Association of Equipment Manufacturers notes that “softer sales prevailed in ag machinery in 2024 and that trend is expected to continue into 2025,” citing global trade concerns and the absence of a new farm bill. The market is also grappling with an oversupply of used equipment, particularly late-model, low-hour machines, as farmers delay new purchases and opt to repair existing equipment, driving parts and service revenues to record highs. The threat of tariffs, including a potential 25% blanket tariff on imports from Canada and Mexico, adds further pressure. The Western Producer warns that such tariffs “would put even more downward price pressure on farm commodities sold into the U.S., further reducing Canadian farmers’ buying power,” making farmers hesitant to commit to new equipment and flooding the used market with inventory.
Auctions: The Hotspot for Bargain Equipment
Machinery auctions have become a go-to for farmers seeking to upgrade their fleets without breaking the bank. The surplus of low-hour, late-model equipment allows farmers to find tractors, combines, and planters that are nearly new at prices 20-30% below dealership rates. Auctions are particularly appealing because they bypass the rising costs of new machinery, which face potential price hikes from tariffs. South China Morning Post highlights that “with farm machine purchases negotiated months or up to a year or more in advance, the risk of tariffs makes new equipment too costly.” A 25% tariff on imported components or machines could significantly increase the price of new tractors and combines, especially for brands like John Deere or AGCO, which rely on global supply chains. Low-hour machines at auction, already in the market, are insulated from these future price increases. Moreover, auctions provide access to equipment with cutting-edge features—precision ag technology, automated systems, and data connectivity—without the premium price of new models. AgWeb reports that farmers are snapping up “combines and tractors with under 500 hours” at prices competitive with older, less advanced models, a critical advantage in an era where precision agriculture is essential for maximizing yields and efficiency.
A Fleeting Opportunity: Why the Window May Close
This buyer’s market may not persist, as signs of recovery are on the horizon. Despite current challenges, optimism is growing in the ag equipment sector. At the 2025 Keystone Farm Show, dealers like Neil Messick of Messick’s Equipment reported a stronger year-end than projected, fueled by hopes of an economic upswing under the incoming Trump administration. Higher grain exports and commodity prices could boost farmers’ purchasing power, increasing demand for equipment. If tariff threats subside or exemptions are granted for agricultural machinery, as some dealers anticipate, the market could stabilize. A representative from Esch Hay Equipment suggested that “if Canada, Mexico, and Europe don’t get hit with tariffs, there won’t be much impact on the machinery market,” potentially reducing the oversupply of used equipment. The current surplus is already being addressed through heavy discounting and auctions, with Iron Solutions noting that “dealers are discounting machines, suspending new orders, and sending more machines to auction.” As inventory clears, used equipment prices are likely to firm up.
Seizing the Moment: How Farmers Can Capitalize
To make the most of this opportunity, farmers should approach auctions strategically. Researching equipment needs and checking auction listings in advance on platforms like AuctionsPlus or Farm Machinery Buyer is crucial. Tools like EquipmentWatch from Fusable can help predict equipment values based on market trends. Prioritizing low-hour, late-model machines with under 500 hours and modern features like precision ag tech offers the best value, combining near-new performance with significant savings. By acting swiftly, farmers can secure high-quality equipment at a steep discount, positioning themselves for success as the market begins to rebound.
Conclusion
The depressed farm machinery market in 2025 offers farmers a rare chance to upgrade their fleets with low-hour, late-model equipment at significant savings through auctions. Driven by falling crop prices, economic uncertainty, and an oversupply of used machines, auction prices are at historic lows—but this window may close as economic optimism grows and tariff uncertainties resolve. By acting quickly and strategically, farmers can secure high-quality equipment at a fraction of the cost of new machinery, which faces the risk of tariff-driven price hikes. Don’t miss your chance to capitalize on this buyer’s market before prices rebound.