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Farmers Turning to Used Equipment

Tue, 14 Jan 2025 | PRODUCTS

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What began as a hopeful year for U.S. farmers ended with declining farm income precipitated by brutally low commodity prices. Unfortunately, all signs point to another difficult season in 2025.

For farmers, a return to basic business fundamentals is in order. They dare not let spending outpace revenue. This may mean putting off capital purchases of new equipment and investing in used equipment.

According to trade association data, U.S. farmers are trimming their equipment spending and purchasing used equipment via auctions. Overall, U.S. dealer sales for ag tractors fell 14.5% in November compared to the year before, based on the latest sales report from the Association of Equipment Manufacturers. Combine sales, likewise, remained soft, with a year-over-year decline of 24%, continuing a downward trend that took off last spring. On the flip side, auctions for used farm equipment are very active. 

Tires are also a significant operating expense, so selecting the right tires is even more critical in tough economic conditions. When money is tight, buying the cheapest Ag tire might seem like a good option but it could quite likely cost more in the long term due to a short life. Likewise, opting for the farm tire with the highest acquisition price is not a guarantee of good value (i.e., acquisition price vs. hours of operation) CEAT delivers long tread life, good performance in the field and on the road, and durability at an “honest” price . . . or in other words, a low cost of ownership.

The mission of CEAT Specialty falls right in line with farmers needing to be conservative with their expenditures in these times of uncertainty. CEAT delivers the latest tire technologies at better value for farmers.