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John Deere unveiled the new 9RX tractor on Feb. 28, 2024.
Many people greet the arrival of a new year as a time to reflect and plan for the future.
For farmers, that can also means taking the opportunity to review their equipment lineup: deciding whether to purchase new machines, evaluating what excess equipment could be sold and making arrangements for repairs when needed.
According to Kevin Brooks, University of Illinois Extension educator in farm business management and marketing, farm equipment sales were strong until 2023.
“Farmers have spent an incredible amount of money — they are not in need due to profits being down,” he said.
This 2021 photo provided by John Deere shows an autonomous tractor plowing a field, without a driver, on a farm in Blue Earth, Minn.
Farmers are looking at whether they are in a temporary position with crop prices down compared to inputs, he said.
Brooks also noted that the average farmer is over 62 years old, and if they are looking to retire around 70, they would not be looking into buying new equipment.
“There is hesitation to jump in and spend money at this point in time,” he said.
Brooks said that when farmers buy equipment, they use depreciation. As farmers age, they need to be able to determine how much longer they will be able to farm for and whether depreciation will need to be recaptured.
The rapid change in technology for equipment also plays into whether to buy new or stick with current equipment.
Brooks noted that equipment will be highly upgradeable as technology continues to advance.
People view a demonstration of the KATR robot designed to work in agriculture and construction at the Kubota booth during the CES tech show Tuesday, Jan. 7, 2025, in Las Vegas.
“Looking at where we are at, technology will change a lot in the next four years,” he said.
Brooks recalled visiting a farmer who had problems with the computer system on his tractor and was down several days waiting for an implement dealer to send a technician.
The anecdote reflects the ongoing worker shortage affecting not only agriculture, but other industries as well, he said. The labor environment affects how farmers get their crops to the elevator, as well as implement dealers having workers to service the farm equipment during the most decisive seasons for farmers.
The Articulated Dump Truck is on display at the John Deere booth during the CES tech show Tuesday, Jan. 7, 2025, in Las Vegas.
Having technicians to service equipment with advancing technology is especially important because some farmers may be uncomfortable or unable to handle the changes in technology.
And the changes keep coming. Last week in Las Vegas, John Deere unveiled a fleet of fully autonomous heavy equipment at the annual tech trade show CES 2025. Nearby, equipment manufacturer Kubota was displaying AI technology that can detect diseases in crops and spray where pests have been identified.
People view an autonomous lawn mower at the John Deere booth during the CES tech show Tuesday, Jan. 7, 2025, in Las Vegas.
Sustainability was a key theme at this year’s CES event, where company leaders highlighted their tech solutions to the climate change and labor issues affecting farmers.
Some political factors also could affect the equipment market. One of those is the potential for trade wars with the incoming presidential administration. Brooks also noted that the Russia-Ukraine conflict, competition in corn and soybeans with Brazil and Argentina and equipment makers like John Deere that have moved a portion of their manufacturing to Mexico.
“Farmers are taking a step back and conserving their capital for the time being,” Brooks said, adding he doesn’t foresee any changes in this for the next year or two.
Tim Burenga, vice president of sales and purchasing at Worksaver Inc., a company that provides equipment for working professionals that own acreage, said he has seen less spending by farmers as well.
“Nobody has disposable income,” he said. “As things become more economical, farmers will start to spend again.”
There is, however, a bright spot because he believes that prices will correct themselves.
“Right now, farmers are holding everything pretty close and making more timely, needed purchases until prices go up,” Burenga said.
The Associated Press contributed.
“Farmers are taking a step back and conserving their capital for the time being.”
— Kevin Brooks, U of I Extension educator
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John Deere unveiled the new 9RX tractor on Feb. 28, 2024.
The Articulated Dump Truck is on display at the John Deere booth during the CES tech show Tuesday, Jan. 7, 2025, in Las Vegas.
This 2021 photo provided by John Deere shows an autonomous tractor plowing a field, without a driver, on a farm in Blue Earth, Minn.
People view a demonstration of the KATR robot designed to work in agriculture and construction at the Kubota booth during the CES tech show Tuesday, Jan. 7, 2025, in Las Vegas.
People view an autonomous lawn mower at the John Deere booth during the CES tech show Tuesday, Jan. 7, 2025, in Las Vegas.
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