As 2025 winds down, the used farm equipment market is showing renewed strength and cautious optimism. While the full rebound hasn’t arrived yet, signs point toward momentum building into 2026.

What’s Happening Now

According to a recent AgWeb article, industry experts Greg “Machinery Pete” Peterson and Casey Seymour say farmers are using auction price data to find deals and track trends. Peterson describes the setup as “a powder keg sitting there waiting to go off,” urging farmers to contact dealers now about the equipment they plan to update.

Dealer consolidation is also adding stability. More than 200 farm equipment groups now operate five or more locations across North America, allowing them to adjust quickly to market shifts. “A decade ago, when there were more owners with two, three, four stores, they kind of had to hold on and hope for better days, but it’s just so much more efficient right now,” Peterson says.

Certain segments are leading the way. Hay tools and livestock equipment, such as utility loader tractors, are selling well thanks to strong cattle profits, while row-crop farmers remain cautious. Seymour says equipment priced between $50,000 and $150,000 is “really, really attractive to buyers” because “we’re at the bottom of the marketplace.”

Aaron Fintel of 21st Century Equipment reports steady sales for new windrowers and used 3×4 balers, while new round balers have been slower. Forage choppers, often a hard sell, “were a pleasant surprise and sold strong all year long.”

The Bigger Picture

Across the sector, used values appear to be stabilizing rather than falling, especially for late-model, low-hour machines. Dealers have managed inventories better than in past cycles, and production cutbacks may keep supply balanced. Farmer sentiment is improving, with more producers planning to invest in machinery over the next year.

Economist Rich Posson expects moderate GDP growth into 2027 but warns inflation could worsen before it eases. His outlook reflects the cautious tone of the farm economy: growth potential without overconfidence.

Looking Ahead

Most experts agree 2025 is a transition year, with 2026 likely marking the start of broader recovery. Stabilized prices, leaner inventories, and stronger farmer demand are setting the stage. For buyers, the current market may be a sweet spot to upgrade before prices rise. Dealers who focus on high-demand segments like hay tools and livestock machinery could gain an edge as sales accelerate.

Optimism is returning to the machinery market. Hay tools, forage equipment, and utility tractors are leading the rebound, and the broader used sector appears to have found its footing. It may not be a boom yet, but the groundwork for one is clearly forming, and those who position themselves now will be ready when it hits.