The Association of Equipment Manufacturers has released its May 2025 report for new equipment sales for Canada and the U.S. Both markets are proving to be a challenging sales environment for manufacturers and agricultural equipment dealers with the U.S. market weaker than the Canadian market overall, compared to the same period in 2024.
While U.S. cumulative unit sales have gapped lower compared to the five-year average, the Canadian May 2025 YTD numbers are tracking close to 2024 YTD (see graph below).
See the U.S. report or the Canadian report from AEM
Highlights of the May 2025 AEM flash reports include:
- Canadian sales of combines rose 15.7% in May 2025 compared to May 2024
- Canadian sales of 4-wheel-drive tractors jumped 35.6% year-to-date
- U.S. sales of ag tractors dropped 11.9% in May 2025 compared to May 2024
- U.S. sales of combines fell 20.9% in May 2025 compared to May 2024
“This continued slump of U.S. tractor and combine sales reflects broader challenges in the ag economy,” says Curt Blades, AEM senior vice president. “High interest rates, global trade uncertainty and increased input prices are causing farmers to delay major equipment purchases. At the same time, we’re encouraged by the strong performance in the Canadian market and remain hopeful that overall conditions will improve as the planting season progresses.”
The AEM numbers do follow the pattern of what has been seen in the Q1 2025 earnings reports for companies like John Deere, Case IH and AGCO. All three heavy-equipment giants flagged demand-driven revenue drops (roughly 20–30%), margin compression, persistent destocking, and cautious guidance which is triggering analyst concern.
