For many farmers, the current machinery market feels anything but stable. Yet according to Cory Nordhausen, vice president of sales for the western U.S. with AgDirect, this moment could actually provide a good opportunity for thoughtful buyers.
“I kind of feel like maybe we’ve reached a reset or a moment of stability in the equipment market,” he says.
Nordhausen isn’t suggesting that prices are low or that buying decisions are easy. Instead, he believes that the relationship between new and used equipment values, combined with evolving inventory levels, has created a window where strategic, well‑planned purchases could make sense.
From Shortage to the “Great Reset”
To understand where we are, Nordhausen says you have to look back at the challenges that started in 2020. It was an era defined by choked supply chains and empty dealer lots.
“Equipment was flying off the shelves. Dealership inventories became depleted, and just the lack of supply was there… you were still waiting on farm equipment for six, 12, 18 months in 2022,” he recalls.
As demand began to cool through 2023 and 2024, inventory began to build. However, Nordhausen believes the market has hit an equilibrium, particularly in the used segment. While it might feel like there is a surplus, the data tells a more nuanced story about high-quality, late-model iron.
“Stability is probably looking at just the value of used farm equipment in relationship to the price of new farm equipment,” Nordhausen explains. “What’s happened is a lot of that good one-to-three-year-old equipment that’s been in the auction space for the last couple of years, that’s come down significantly. I suppose you can look at planters, combines, tractors, and sprayers and say that there’s probably 40% less of that stuff in the auction space today.”
Are Prices Reaching A Bottom?
If the auction blocks are seeing 40% less late-model inventory, it suggests the “oversupply” phase is tightening. For farmers who have been waiting for used prices to bottom out, Nordhausen suggests that is in the process of happening now.
“We probably won’t see, unless something crazy happens, the price of used equipment going down much more,” he says. “Some of that good late-model, one-to-three-year-old equipment is starting to bring a little bit more money than it has. That’s simply due to supply and demand.”
Looking further down the road, the lack of new equipment sales in 2024 and 2025 has potentially created a “pipeline problem” for the future. If fewer new machines are sold today, he believes there could be a shortage of high-quality used machines two or three years from now.
Consider Labor Needs And Repair Costs
In this tight-margin environment, Nordhausen’s advice to farmers is to be thoughtful and strategic, as they focus on the big four items: tractors, combines, planters and sprayers. In the process of weighing whether now is the time to upgrade, he also encourages farmers to evaluate their labor needs and the cost of repairs.
“You have to look at, what piece of equipment are you going to buy that is going to bring the most efficiency to your farm? What’s going to save you the most time? What’s going to help you when you can’t get as much labor on your farm to run that equipment?” he asks.
Furthermore, he believes the “run it until it breaks” philosophy has some downsides.
“Repair bills are not going down. The price of parts is up. Shop rates in dealerships continue to increase year over year,” Nordhausen says. “One really has to find that balance of ‘how much money am I going to stick into that used piece of equipment on my farm’ versus when’s the time right to trade it.”
Financing as a Strategic Purchasing Lever
When margins are compressed, liquidity is king. It’s why Nordhausen says he views financing not just as a way to pay for a machine, but as a way to protect a farm’s balance sheet.
“You can amortize those payments out… and save some of that liquidity off your balance sheet so you can go use that in other places,” he says.
While the standard industry structure remains a five-year term with 20% down, Nordhausen would also encourage farmers to evaluate leasing.
“On the lease you have a large balloon on the end—we refer to it as a residual—and that lowers each annual payment... really allowing you to get that cost per hour, cost per acre down,” he says.
He acknowledges there is a trade-off, however: “There is a little bit of a penalty to pay, because you pay a little more interest because you’re carrying more principal. But if you’re purely looking at cash flow, that’s a very strategic way to get the payments lower.”
Weigh The Various Options With A Sharp Pencil
Nordhausen encourages farmers evaluate buying opportunities carefully, specifically when it comes to low-interest or 0% incentives.
“I think you’ve got to do the math, right? Just because you see 0% interest, that doesn’t necessarily mean you’re getting the best deal,” he cautions. “There’s probably a cost to you on the other side of it baked into the price.”
To counter this, he suggests farmers use tools like the AgDirect mobile app to calculate the “true cost” of buying down a rate. Armed with the math, he believes a farmer can have more negotiating power at the dealership.
“If you’re more interested in just a low cash price, you can offset that, saying, ‘I don’t need 0% interest. What’s your best cash money deal?’”
Another consideration – as dealerships become more cautious about taking in trades to manage their own inventories, more of the action is moving to auction platforms and private-party sales. Nordhausen notes that AgDirect has seen “huge momentum” in these channels over the last decade.
Looking Ahead: Plan Now for Tomorrow’s Needs
Nordhausen believes farmers should be thinking two to three years out about their equipment needs.
With fewer new units being sold now and late‑model used inventories tightening, he sees a real possibility of higher used prices if commodity markets would strengthen. “With the lack of used inventory that we built in ‘23, ‘24 and ‘25, there might be a higher demand. And what happens with demand—prices go up.”
His central message to farmers: use this “reset” period to upgrade strategically, align purchases with both efficiency gains and cash‑flow realities, and above all, he adds, do the math before you sign.
