Top Ten Equipment Market Insights From 2024 & 2025 Outlook

The 2024 equipment market faced volatility from declining values, higher interest rates, surplus supply, and low farm profitability. As we head into 2025, using timely data to manage excess inventory, portfolio risk, and customer insights will be critical for navigating these and other related challenges.

While the issues of the past two years persist, 2025 will be shaped by shifts in inventory, export demand, and farm profitability.

Planters and combines are balanced, but high horsepower tractors and sprayers remain oversupplied, with made-to-order production significantly reduced. While inventory levels should correct, the process will take time.

Export demand could alleviate high late-model equipment supply, especially if conflicts like the war in Ukraine resolve in 2025. Catch more on this topic in our Beyond the Hood podcast. 

Machinery demand is linked to net farm income, which faces global competition and rising commodity stocks-to-use ratios, pressuring markets and reducing profitability. Factors like China’s demand reduction and increased yield potential play key roles. Get more information about next year’s outlook from the Ag Economy Insights and a Data-Forward 2025 episode of Beyond the Hood.

The USDA’s short-term bullish outlook on corn could provide a temporary boost to equipment markets, but long-term farm income is projected to decline due to yield growth and increasing acres in production.

The potential for new tariffs in 2025 could disrupt agriculture markets, affecting key commodities like corn and soybeans and, consequently, equipment demand and values. Hear from Brady Brewer, Associate Professor of Agriculture Economics at Kansas State University about Farmer Buying Behavior.

For even more categories, like 4WD tractors, platform and row crop headers, balers, etc., download the full industry report.

While values remain stable, aging inventory and a 30% decline in unit turn rates are concerns, particularly for equipment sitting unsold for over 90 days.

Inventory has increased slightly, yet sales and turn rates have slowed. Dealership list values are stable but auction values are down 26% for 12-row planters.

The overall growth of inventory (from both 7 & 8 classes) decelerated this past summer, which has helped bring about the stabilizing auction values.

Supply has surged 60% year over year, with auction values down 14%, and dealers are facing squeezed margins due to declining sold values.

With a 42% increase in supply, unit turns have dropped significantly, auction values are down 22%, and dealerships face rising carrying costs due to slower demand.

With the right solutions, you can be better equipped to make informed pricing, sales, marketing, and inventory management decisions as the ag industry continues in a new challenging direction. 

If you would like to learn more about how Tractor Zoom helps our partners sell more equipment efficiently with their repricing, sales, and inventory decisions, request a personal demo today.