US farm with 93,000 hectares for sale: 10,000 cattle on 2 islands.
10,000 cattle, deer, bison, and a slaughterhouse in the middle of nowhere. One of the largest slaughterhouses in Alaska is located on the storm-battered Umnak Island.
Huge Sales Slump for US Agricultural Machinery Manufacturers
The major agricultural machinery manufacturers in the USA are facing massive sales problems. Farmers are hardly buying any agricultural machinery. Now, tariffs and the trade war, along with falling grain prices, are adding to the challenges. On Thursday (01.05), the leading US tractor manufacturers CNH Industrial NV and AGCO Corp. reported lower revenues in the first quarter of 2025.
Farmers Hesitate to Purchase Machinery
Farmers continue to hesitate in buying machines. One reason is that the tariffs imposed by US President Donald Trump are affecting grain and oilseed trade and pushing grain prices down. This scenario threatens to further prolong the sales problems in the industry, according to analysts and manufacturers. The leading US tractor manufacturers CNH Industrial NV and AGCO Corp. (Fendt) reported lower revenues in the first quarter of 2025 on Thursday (01.05), pointing to the possibility of weak demand from agriculture, which would lead to lower sales of tractors, planting machinery, harvesting, and field equipment. Nevertheless, AGCO shares rose by up to 13 percent on Thursday, while CNH rose by up to 8.7 percent. Both companies' shares lagged behind those of industry leader Deere & Co. Deere, which will report its results later in May, rose by up to 4.7 percent, as reported by American media.
The Agricultural Machinery Market
The agricultural machinery market has been under pressure since the sales peak in 2022. Manufacturers have since reduced production to decrease their inventories. At the same time, many farmers in the USA and Europe expect lower earnings due to falling grain prices and are reducing their purchases of tractors, agricultural machinery, and inputs (fertilizer).
2025: Low Point in Agricultural Machinery Sales
This year could mark a low point in agricultural machinery sales, according to market analysts at the US online portal farmprogress.com. AGCO expects higher annual sales in South America and the Asia-Pacific region before a recovery begins in North America. However, China's triple-digit retaliatory tariffs on US products could exacerbate the sales crisis. US Agriculture Minister Brooke Rollins stated that the government is considering higher aid payments for American farmers, after starting to distribute $10 billion in aid funds in March, as reported on farmprogress.com. AGCO, however, believes that higher aid payments for agriculture will not lead to a short-term surge in demand. "The biggest buyer of their products (China) is in the middle of a trade war," said AGCO CEO Eric Hansotia in an interview. During the last conflict in Trump's first term, when China turned to Brazil, "not everything came back, so US farmers permanently lost market share. And when I talk to farmers, they fear that this could happen again," Hansotia said.
Uncertainty in the Industry
Uncertainty arises as the industry has made progress in autonomy and automation, allowing farmers to reduce labor costs, although high-tech machinery is expensive. CNH announced that it increased prices for new orders from customers and dealers by low single digits as of May 1. About 20% of components for US factories are subject to tariffs, with four percent coming from China. "We have made significant progress in our cost reduction measures and at the same time reduced inventories by reducing production hours in the quarter by around 33% compared to the previous year," said Eric Hansotia.