Tariffs and High Costs Hit John Deere — and Farmers

U.S. tractor maker John Deere is facing mounting pressure from tariffs, soft demand, and

reluctant farmers — while farmers themselves are caught between high equipment costs and shrinking crop revenues.

The price of new agricultural machinery has surged over the past decade, with some tractor models now costing more than $250,000 above their 2017 levels. Many farmers say they simply can’t afford new equipment, especially as crop prices fall and trade markets remain volatile.

That’s driving demand toward used equipment. “The increase in new pricing has definitely driven people back to the used market,” said Josh Enlow, who runs Enlow Tractor Auction in Tulsa, Oklahoma.

Tariffs Take a Toll

John Deere itself is struggling with the effects of tariffs. The company expects to absorb $600 million in tariff-related costs this year, mostly tied to higher steel and aluminum prices. Net income fell 29 percent in the last quarter compared with a year ago, while sales of large machinery — Deere’s biggest revenue source — are projected to drop 15 to 20 percent in 2025 and remain weak into 2026. 

Farmers Hold Back

But even as Deere struggles, so do its customers. Farmers are grappling with soybean exports down 51 percent this year, costing growers an estimated $3.4 billion in lost income. Corn prices have dropped by half since mid-2022. With margins thin, farmers are holding onto older tractors longer, or turning to secondhand equipment rather than investing in brand-new models.

Farmers on the Ground: “Pricing Us Out”

Many farmers argue that Deere’s machines were already stretching their budgets before tariffs. “Deere was pricing themselves out before the tariffs. A 150 hp tractor for over $225k... parts are stupid high,” one farmer wrote on Reddit’s r/farming forum, echoing a widespread frustration.

Reliance on expensive new technology is leaving family farms vulnerable. For now, many say the only way to stay afloat is by holding onto old equipment — because until crop prices rebound and trade tensions ease, few can justify spending six figures on a new tractor, no matter how shiny the green-and-yellow paint.