Farm Machinery Market Reset: What Low Commodity Prices Mean for Equipment Financing in 2026

The contents from this blog come from an interview conducted by Addison Stoddard at Commodity Classic in San Antonio, Texas.

Agriculture has faced several challenging years as producers navigate fluctuating markets and lower commodity prices. As the industry moves into 2026, many are beginning to see signs of stabilization in the farm machinery market.

During a recent conversation at Commodity Classic, Addison with the Kansas Farm and Ranch Radio Network spoke with Cory from AgDirect, powered by Farm Credit System, about how recent market conditions have impacted equipment sales and what farmers can expect moving forward.

Slower Equipment Sales in 2025

The year 2025 continued a trend of slower farm equipment sales across the agricultural industry. According to Cory, declining commodity prices played a major role in reduced purchasing activity.

“Equipment sales slowed significantly as commodity prices dropped,” Cory explained. “That led to a lot of inventory moving into the auction market.”

Dealers began liquidating equipment inventories that had accumulated since the strong sales years of 2021 and 2022. As more machinery entered auctions, used equipment prices dropped due to increased supply.

The Rise of the Auction Market

Since 2023, the agricultural equipment market has seen a surge in auction activity. Farmers looking to sell machinery — along with dealerships reducing inventory — contributed to a large volume of equipment entering the resale market.

This increased supply pushed used equipment values lower, creating a notable gap between the price of new equipment and used machinery.

However, recent trends suggest the market may be stabilizing.

“We’re starting to see some positive movement,” Cory said. “In the last couple of months, some auctions have shown used equipment values beginning to trend upward.”

What the 2026 Equipment Market “Reset” Means

Many in the agriculture industry are referring to the current shift as a farm machinery market reset.

Looking back to 2020, equipment demand surged during the strong commodity years of 2021 and 2022. Machinery was selling quickly, often as soon as it arrived at dealerships.

But by 2023, the market began cooling.

“The brakes really went on once commodity prices dropped,” Cory noted.

The reset refers to the correction happening within the market:

• Used equipment values dropped after the surge in auction inventory

• New equipment prices have continued to rise

• Manufacturers are expected to increase new equipment prices by 2–5% again in 2026

This has created a wide pricing gap between new and used machinery. The current market adjustment is helping bring those values back into balance.

Why Equipment Financing Matters Right Now

With tighter margins and strained balance sheets, many producers are approaching equipment purchases differently than they did just a few years ago.

Cash purchases have become less common as farmers focus on maintaining liquidity.

That’s where equipment financing solutions from AgDirect come into play.

AgDirect specializes in financing agricultural equipment across much of the United States through partnerships with Farm Credit System associations.

Their financing options include:

• Equipment loans

• Leasing options

• Refinancing existing equipment

• Auction purchase financing

• Private party purchase financing

Protecting Cash Flow on the Farm

According to Cory, financing decisions are becoming just as important as the equipment purchase itself.

“With tighter cash flow, producers need to look first at how they’re going to finance a piece of equipment,” he said. “Finding a structure that protects liquidity while fitting into the farm’s cash flow is critical.”

By structuring payments appropriately and managing down payments, producers can preserve working capital while still investing in necessary equipment.

Looking Ahead

While the past few years have presented challenges, early indicators suggest the farm equipment market may be finding stability.

As the industry moves into 2026, producers will continue balancing careful financial planning with the need to maintain efficient operations.

Understanding the evolving machinery market — and exploring financing tools that support farm cash flow — may help producers navigate the next phase of the agricultural economy.