Is it Time to Upgrade? Key Factors Farmers Should Consider for Replacing Equipment

Kevin Brooks, a farm business educator from the University of Illinois, notes that equipment sales were strong leading up to 2023. Farmers spent quite a bit, even though profits have dipped.

“Farmers aren’t in a buying frenzy because they need to; they’re just being cautious,” he explained.

Some farmers are questioning if lower crop prices will last and how it will affect their spending. Other farmers are older, with an average age above 62. If they plan to retire around 70, they might hesitate to invest in new equipment.

Brooks mentioned, “There’s a lot of hesitation when it comes to spending money right now.”

When farmers do buy equipment, they consider depreciation. They must assess how much longer they can farm and whether they’ll need to recapture depreciation later on.

Technology changes quickly in farming equipment. Brooks pointed out that many tools will soon offer upgrades as innovations continue to emerge.

Farmers also face a shortage of technicians who can service the latest tech. This can delay essential repairs and hurt productivity, especially during peak seasons.

For example, Brooks remembers a farmer waiting days for help after a tractor’s computer malfunctioned. Such scenarios highlight the ongoing labor issues in the agriculture sector.

A lot is happening in farming tech. At CES 2025 in Las Vegas, John Deere introduced fully autonomous machinery. Kubota showcased AI tools that can identify crop diseases and target pest control.

During this event, sustainability was a hot topic. Company leaders discussed their technologies aimed at addressing climate challenges and labor shortages.

Political events, like the potential for trade disputes and the ongoing Russia-Ukraine conflict, may also impact the equipment market. Farmers are keeping a close watch on their finances for now.

Tim Burenga from Worksaver Inc. observed a trend of less spending among farmers. “No one has extra cash right now. But as conditions improve, spending will likely rise again,” he said.

He feels optimistic that prices will eventually stabilize, allowing farmers to make more necessary purchases.

The Associated Press contributed.