The US farm equipment market showed modest improvement in November after several months of declining values, driven largely by traditional year end purchasing behavior. Increased transaction activity helped support both retail and auction prices, even as dealers continued to face pressure from elevated inventories and soft demand for large equipment.
According to market participants, farmers accelerated equipment purchases toward the end of the year to take advantage of the reinstated 100 percent bonus depreciation and to reduce taxable income. This seasonal surge provided short term support for used equipment pricing across multiple categories.
Despite the uptick, many dealerships remain under strain after an extended period of falling values, particularly for high dollar machines.
Year End Tax Incentives Boost Auction and Retail Activity
Industry data indicates that November transaction volumes increased across both dealer networks and auction platforms. This pattern aligns with historical year end trends, when tax planning often drives buying decisions.
However, while auction values experienced temporary lifts, these gains did not fully offset losses incurred earlier in the year. Many large dealerships continue to carry excess inventory, forcing aggressive liquidations and, in some cases, realized losses on late model equipment.
Industry executives note that while upcoming federal farm policy support may improve sentiment, it will take time to translate into sustained demand recovery.
Large Row Crop Operations Continue to Pressure High Horsepower Equipment Demand
Market fundamentals remain uneven across agricultural segments. Large scale row crop farming continues to be the primary area of weakness, directly impacting demand for high horsepower tractors, combines, and self propelled equipment.
Consultants observing the sector point out that corn, soybean, wheat, and canola operations are closely tied to large equipment utilization. With margins under pressure in these crops, demand for big iron remains constrained across most major OEM brands.
Dairy and Livestock Markets Support Forage Equipment Demand
In contrast, dairy and beef operations provided a relative bright spot in 2025. Strong export demand and herd expansion helped stabilize cash flow in these sectors, supporting continued investment in forage equipment such as balers, mowers, and forage harvesters.
This divergence highlights how equipment demand increasingly reflects commodity specific economics rather than broad agricultural trends.
November 2025 Used Equipment Market Performance by Category
Used high horsepower tractors over 100 HP
Inventory declined modestly month over month and sharply year over year. Asking prices continued to soften, while auction values showed a slight month to month increase but remained lower than last year.
Used combines
Combine inventory edged higher in November but stayed well below year ago levels. Asking prices improved month over month, and auction values posted one of the strongest gains across equipment categories, rising both monthly and annually.
Used sprayers
Sprayer inventories increased slightly from October but remained significantly lower year over year. Asking and auction values continued to decline, reflecting cautious replacement cycles and delayed capital spending.
Used planters
Planter inventories fell both month over month and year over year. Asking and auction values moved higher, signaling solid demand tied to replacement needs and precision planting upgrades.
Used compact and utility tractors
Compact and utility tractor inventory recorded one of the steepest year over year declines. Both asking and auction values increased, reflecting continued strength in small acreage farming, rural lifestyle buyers, and construction crossover demand.
Market Analyst Perspective
The November 2025 stabilization reflects a convergence of short term financial incentives rather than a fundamental demand recovery. Bonus depreciation pulled forward purchases that might otherwise have been delayed, temporarily lifting prices and transaction volumes.
At the same time, structural pressures remain. Large row crop producers continue to delay major capital investments amid tight margins, keeping downward pressure on high horsepower equipment. Dealers are still working through elevated inventories accumulated during the post pandemic supply rebound, limiting pricing power.
Conversely, compact tractors, planters, and certain harvest segments benefit from diversified demand drivers, including livestock operations, precision technology upgrades, and non traditional buyers. Until crop profitability improves at scale, the market is likely to remain segmented, with selective strength rather than a broad based rebound.
