U.S. Tractor Sales Slide Again in August While Canada Holds Steady
The Association of Equipment Manufacturers (AEM) released its August 2025 tractor sales data, and the trend in the U.S. remains negative. Canadian sales, meanwhile, continue to hold ground. Compact and utility tractors — the bread-and-butter of our readers — are caught in the middle of this diverging North American picture. From the press release:
“While the rise in Canadian combine sales is a bright spot, the continued declines in the U.S. underscore the cautious sentiment we’re seeing across the ag equipment market,” said Curt Blades, Senior Vice President at the Association of Equipment Manufacturers. “Farmers are clearly taking a measured approach to capital investments, weighing operational needs against persistent economic pressures like trade concerns, high interest rates and input costs. We remain hopeful that stability will return, especially as producers head into harvest.”
August Numbers Show Another U.S. Decline
In the United States, total farm tractor sales fell 8.2 percent year over year in August. Breaking it down by horsepower:
- Under 40 hp tractors: down 8.5 percent
- 40-100 hp tractors: up 0.7 percent
- 100+ hp tractors: down 22.6 percent
- 4WD tractors: down 47.5 percent
The under 40 hp class — the segment most closely tied to compact equipment users — continues to drag the market. Year-to-date, sales of small tractors sit 7.6 percent lower than in 2024. Compact and utility buyers remain cautious. High interest rates and inflationary input costs still weigh on decisions. July already showed a 4.9 percent year-over-year tractor sales dip, and June dropped 4.4 percent. August simply continues the slide.
Canada’s Market Still Looks Resilient
Canada continues to resist the downtrend. While July showed tractor sales up 3 percent year over year, August reports remained stable. Combine sales are even stronger, with a 52.2 percent year-over-year jump. For compact and utility tractors, Canadian growth suggests stronger buyer confidence. Landscapers, municipal buyers and acreage owners north of the border appear more willing to invest than their U.S. counterparts.
Why Compact Equipment Readers Should Care
Compact and utility tractors between 40 and 100 hp remain core tools for landscapers, contractors and hobby farmers. Even though they are classified as ag tractors in AEM reports, their applications stretch well beyond the farm. The sales slowdown could have two outcomes for buyers:
- U.S. dealers may push incentives to move smaller tractor inventory before year-end
- Canadian demand may keep availability tighter, especially in hot segments
Watch for Our Utility Tractor Roundup
Compact Equipment has a detailed feature coming soon that summarizes the newest utility tractors in the industry. From 40-hp compacts to 100-hp workhorses, we’ll cover what’s new and what’s next. Don’t miss it — sign up for our newsletter to stay updated.
Keith Gribbins is publisher of Compact Equipment.
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