U.S. farm equipment sales continued its decline in October, according to the latest Association of Equipment Manufacturers (AEM) report. Total farm tractor sales fell 19.6% from a year earlier, while combine sales dropped 26.8%.

Among tractors, the steepest decline came in the 4WD segment, down 56.3% for the month and 42.2% year-to-date. Sales of 2WD tractors under 40 HP, often used by hobby and small-acreage farmers, also slipped 22% year-over-year. Larger 100+ HP tractors saw sales fall 17.3% in October and are down nearly 24% year-to-date.

Year-to-date, U.S. tractor sales are off 9.2% overall, while self-propelled combine sales are down a sharp 38.4% compared with 2024.

Industry analysts noted that elevated interest rates and softer commodity prices have continued to weigh on farm equipment demand, though some dealers reported improving inventory levels heading into year-end.