Farm Machinery Sales Faced Global Declines
New Holland expects a multi-year recovery period as farmers continue to reduce fleet sizes and delay new equipment investments.
Updated on Oct. 14, 2026 in Agriculture
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CNH Industrial reported flat agricultural revenue of $3.2 billion for the second quarter of 2026 amid significant sales drops in Europe and South America. Weak farm profitability, adverse weather, and ongoing geopolitical instability have led farmers to cut operating costs.
Why it matters
Low crop yields and commodity price pressure have severely reduced the purchasing power of farmers globally. These factors have discouraged investment in new machinery, creating a prolonged downturn for manufacturers.
CNH Industrial reported $3.2 billion in agricultural revenue during the second quarter of 2026. This period saw European tractor sales fall 11%, while combine harvester sales in South America dropped 29%.
The players
CNH Industrial
This global company is a major manufacturer of agricultural and construction equipment.
New Holland
A subsidiary of CNH Industrial, this brand produces a wide range of tractors and combine harvesters.
Brazilian Machinery and Equipment Industry Association
This trade group represents the interests of machinery manufacturers operating within the Brazilian market.
The details
Farmers are increasingly postponing fleet replacements and reducing fleet sizes to mitigate rising costs and declining profits. Market challenges are particularly visible in France, where the corn harvest is estimated at 7.3 million metric tonnes, and in Brazil, where the local machinery association forecasts a 20% sales drop for the year.
Timeline
1980 marks the reference point for the lowest recorded level of French corn production.
2022 signaled the beginning of the ongoing Russia-Ukraine conflict.
Q2 2026 was the period covered by the CNH Industrial financial report.
September 2026 included a visit to the New Holland factory in Zedelgem, Belgium.
2026-2029 is the projected timeframe for a gradual global recovery in machinery sales.
Market Landscape
The industry is currently facing a correction period, with current output levels for some crops drawing comparisons to the lows of 1980. This downturn follows a period of over-investment, forcing a structural shift as manufacturers adjust to reduced demand.
Higher machinery costs and reduced availability may eventually lead to increased service prices for farmers who are delaying replacements. Consumers might see shifts in food prices as agricultural operations face ongoing pressure from rising operational expenses.
The takeaway
Global agricultural manufacturers are bracing for a multi-year recovery as the sector balances high operating costs with lower commodity returns. Farmers should prioritize regular maintenance of their current fleets to maximize longevity during this period of reduced equipment investment.
Further reading
For more on the current state of global crop production, visit the Agriculture section.
Source note: This article includes information reported by Valorinternational.
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