After a full year of steady decline, U.S. farm tractor sales posted their first gain of 2025 in September, according to new data from the Association of Equipment Manufacturers (AEM). Total sales for the month reached 17,729 units, up 4.1% compared to September 2024.

"This modest increase is certainly encouraging," said Curt Blades, senior vice president at AEM. "It reflects the resilience of the ag sector and steady equipment demand as harvest ramps up."

The rebound was driven largely by 2WD tractors in the 40-100 horsepower range, which saw a 17.3% jump in sales-from 4,636 units in September 2024 to 5,438 units last month. Entry-level sub-40 hp 2WD tractors also saw a 2.5% increase, with 10,336 units sold.

However, the news wasn't all positive. Sales of higher-horsepower and 4WD tractors continued to slide:

• 2WD 100+ hp tractors: Down 11.5% year-over-year

• 4WD tractors: Down 32.7%, with just 300 units sold in September

• Self-propelled combine sales: Down 21.9%, dropping from 530 units in 2024 to 414 units in 2025

Year-to-date numbers remain negative, with total U.S. tractor sales down 8% compared to 2024. Combine sales have fared even worse-down nearly 40% year-over-year, with just 2,688 units sold so far in 2025.

In Canada, the picture was brighter. Canadian tractor sales rose 7.2% in September, while combine sales jumped 42%, showing a much stronger equipment demand north of the border.

Equipment inventories remain elevated, which may further complicate manufacturer margins and dealer stocking strategies. In the U.S., sub-40 hp tractor inventory alone began the month with more than 61,000 units in stock.

Despite continued economic pressure and input cost volatility, industry leaders see potential for further stabilization. "There's still uncertainty in the marketplace, but momentum is shifting in the right direction," said Blades. "We'll be watching the rest of harvest season closely."