With harvest safely tucked away in the bin, 2024’s back cover has been shut for good. What began as a hopeful year for U.S. agriculture ended with tumbling farm income precipitated by rock-bottom commodity prices. And all signs point to another difficult season in 2025.

In this new year, Pete Weisenberger, president of Weisenberger Agricultural Services, says farmers should return to basic business fundamentals: Don’t let spending outpace revenue. If necessary, contract. Taking this simplified approach to fiscal management and machinery purchases could make a big difference. 

“Farming is as much of a business as someone selling shoes on Main Street,” he says. “Your No. 1 goal should be to think like a businessman. Know your numbers. Understand, analyze and do the math: Will this piece of equipment I want to buy be profitable?”

While rudimentary, Weisenberger says careful budgeting is crucial to a sustainable farming operation, and not enough farmers prioritize financial management. The agricultural economy is cyclical and, eventually, it’ll pitch upward again. Persistent forward planning enables long-term survival, he says.

“Always be prepared for the next drought,” he says. It’s important to spread out costs and “manage for the long haul. Top-notch producers pay attention to [financial management]. The business office is just as important as being out in the field.”

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For now, that might mean consolidating assets and putting off capital purchases. It could mean dusting off tools, opening panels, repairing machines that might otherwise go into the shop and reconsidering financial decisions. Rather than leveraging yourself more and buying new in 2025, consider investing in older, used machinery. 

Downward trend

According to trade association data, U.S. farmers are heeding Weisenberger’s advice by trimming their equipment spending and purchasing used equipment via auctions. Overall, U.S. dealer sales for ag tractors fell 14.5% in November compared to the year before, based on the latest sales report from the Association of Equipment Manufacturers. Combine sales, likewise, remained soft, with a year-over-year decline of 24%, continuing a downward trend that took off last spring.

“November’s sales of ag tractors and combines follow the same pattern of the last few months of softness in the market,” says Curt Blades, AEM’s senior vice president. “This slowdown in sales can be traced back to high interest rates and uncertainty in the overall ag economy.”

While dealer sales went down, farm machinery auction prices ticked up for most categories month over month, according to Sandhill Global’s latest market report. 

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With fewer buyers, prices are declining. Used high-horsepower tractor inventory, for example, is still trending upward — up over 23% year over year, with prices down over 6%. 

“High-horsepower tractor and combine inventory is still climbing, while asking values are coming down,” says Ryan Dolezal, manager of TractorHouse, about the data. “In both categories, auction values have been increasing but are now on a steady trend. Combine auction values increased more than other categories from October to November. Compact tractors, on the other hand, showed decreases across the board in inventory levels, asking values and auction prices.”