January 2026 Agricultural Equipment Sales Update

Data from the Association of Equipment Manufacturers (AEM) indicates that U.S. tractor sales have experienced a decline for the fourth consecutive month in January 2026, with a noted decrease of 4.7%. In contrast, sales of combines have shown significant improvement, soaring by 68% in the same period.

Tractor Sales Overview

Total tractor sales in January 2026 amounted to 8,771 units, decreasing from 9,200 units sold in January 2025. The total inventory of farm tractors at the start of January 2026 was recorded at 88,899 units.

• 2WD Sub-40 HP: Sales dropped by 6.6%, selling 5,011 units compared to 5,367 the previous year.
• 2WD 40-100 HP: There was an increase of 8.8%, with 2,861 units sold versus 2,629 units in January 2025.
• 2WD 100+ HP: Sales saw a decline of 25.9%, selling 817 units compared to 1,103 in the previous year.
• 4WD Tractors: Sales decreased by 18.8%, with only 82 units sold compared to 101 in January 2025.

Combine Sales Surge

In sharp contrast to the tractor sales trend, self-propelled combine sales in the U.S. experienced a remarkable increase of 68%, totaling 163 units sold this January, compared to 97 units in January 2025. Starting inventory for combines was at 755 units.

Canadian Market Performance

The Canadian agricultural machinery market performed notably well in January 2026. Total tractor sales improved by 8.8%, with 1,424 units sold compared to 1,309 in January 2025. The inventory started at 11,998 units.

• 2WD Sub-40 HP: Sales increased by 8%, with 866 units sold compared to 802 units last January.
• 2WD 40-100 HP: Sales rose to 313 units, marking a 9.8% increase from January 2025.
• 2WD 100+: Sales were modestly up to 167 units from 163 the previous year.
• 4WD Tractors: These sales also rose sharply by 32.2%, totaling 78 units sold.

Self-propelled combine sales in Canada experienced an astonishing growth of 447.6%, with 115 units sold this January, contrasting sharply to only 21 units in January 2025. The inventory began at 442 units.

Market Insights and Future Outlook

AEM Senior Vice President Curt Blades remarked, “After several months of challenging numbers, it’s encouraging to see a modest uptick in combine sales this January. However, the decline in overall tractor sales suggests difficulties in the farm economy, highlighting the necessity for more certainty in biofuels and global agricultural markets.”

The divergence in performance between tractor and combine sales indicates a nuanced landscape in the agricultural equipment sector, where varying demands and market conditions are reshaping the industry.