Farm machinery dealers across North America are wrapping up a disappointing season of agricultural shows, as farmers prepare for spring planting with limited investment in new equipment.

While purchases have not stopped entirely, farmers are tightening their budgets—avoiding high-cost machinery due to soaring prices for equipment, fertilizer, and fuel, along with falling crop prices caused by a global grain surplus.

“They may skip buying a million-dollar combine, but they’ll still invest in smaller equipment worth around $100,000,” said Chad Jones of Degelman Industries, speaking at Canada’s Farm Show in March.

According to the Association of Equipment Manufacturers, overall spending remains significantly lower than in previous years. The group reported that U.S. sales of major equipment like tractors and combines dropped between 30% and 40% in March compared to last year.

The downturn is largely driven by financial pressure on farmers, worsened by trade tariffs introduced during the administration of Donald Trump. These tariffs have increased the cost of manufacturing heavy machinery—commonly known as “big iron”—which relies heavily on steel and imported components.

Reports indicate that the administration is considering a 25% tariff on finished imported goods containing steel and aluminum, while maintaining a 50% tariff on products primarily made from those metals, including tractors and combines. This is expected to further push up prices.

A recent earnings call from John Deere revealed that tariffs could cost the company up to $1.2 billion in 2026, with some of the added costs yet to be passed on to farmers.

Although Trump has urged manufacturers to lower prices to support farmers, industry leaders argue that tariffs are the root of the problem. “The most effective way to reduce costs would be to significantly scale back tariffs affecting both manufacturers and farmers,” said Kip Eideberg of the Association of Equipment Manufacturers.

Ongoing trade tensions have also hurt U.S. agricultural exports, particularly soybeans, with China largely absent from the market in recent months. This has driven down crop prices and led to large stockpiles.

Economist Leigh Anderson from Farm Credit Canada noted that many farmers are facing slim or even negative profit expectations for the upcoming growing season, prompting delays in equipment upgrades and extended use of older machinery.

This cautious approach was evident at a recent farm show in Regina, where despite strong attendance, interest in large machinery remained subdued.

“It’s clear that purchasing behavior has shifted from wants to needs,” said Eideberg, emphasizing that reducing tariffs could provide immediate relief to both farmers and manufacturers.