News You Can Use for the Week of 05/27/2025

Welcome to Tractor Zoom's News You Can Use -- your quick-hit roundup of timely, relevant news from across the ag equipment industry. From market shifts to buyer behavior and inventory strategy, we’ve gathered the insights you need to stay informed and ahead of the curve.

The U.S. ag equipment market is experiencing shifts due to rising operating costs and changing credit conditions. Notably, non-real estate farm loans over $500,000 have reached a record 3.5% of all loans since 2010, indicating increased financial pressure on farmers. Some used equipment values, like combines, have stabilized in 2025 after a period of volatility, yet auction values for row crop and high-horsepower tractors have dropped approximately 11% year over year. However, regional demand varies, influenced by factors like commodity prices and weather conditions.

The global agritech market is poised for significant growth, expected to reach $48.98 billion by 2030, growing at a CAGR of 12.3%. This expansion is driven by the adoption of technologies such as AI, IoT, drones, and robotics, which aim to enhance productivity and sustainability in agriculture. Precision farming and farm management software are key areas contributing to this growth.

A recent report, "Agritech Market - Global Outlook & Forecast 2025-2030," projects the agritech market to reach $48.98 billion by 2030, according to Research and Markets. Source: Research and Markets

In the Kansas City Federal Reserve District, farmland values in District 10 remained largely unchanged through the end of 2024. However, credit conditions have deteriorated slightly, with increased demand for non-real estate financing and a rise in farm loan interest rates to multi-decade highs. Despite these challenges, the sector anticipates some relief in 2025, supported by government payments and potential improvements in crop yields.

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