At the sprawling Enlow Tractor Auction lot in Tulsa, Oklahoma, the hum of engines and chatter of buyers has taken on a new tone. Josh Enlow, proprietor and lifelong dealer in used agricultural and construction equipment, has noticed a distinct shift. Where once his clientele was composed mostly of those unable or unwilling to buy new, he now sees a steady stream of farmers and ranchers who, not long ago, would have turned up their noses at anything but the latest model. "The increases in new pricing has definitely driven people back to the used market," Enlow said, surveying rows of tractors glinting in the Oklahoma sun.
This isn’t just a local quirk. Across the United States, the agricultural machinery market is facing a seismic change. According to the University of Illinois Extension, list prices for new tractors have soared at least 60 percent over the last eight years, with some models now costing a staggering $250,000 more than they did previously. This surge in cost has fundamentally altered the calculus for buyers and sellers alike, pushing even the most loyal customers of new equipment into the arms of the used market.
For John Deere, the iconic green-and-yellow titan of American manufacturing, this trend spells trouble. The company, which reported a record profit just two years ago, now finds itself in choppier waters. As reported by The New York Times, John Deere’s net income in the most recent quarter ending in August 2025 was down 29 percent from a year earlier. The cause? A complex cocktail of global trade tensions, shifting commodity prices, and, perhaps most critically, tariffs on the very materials that make up its machines.
President Trump’s trade policies, particularly his tariffs on steel and aluminum, have hit manufacturers like John Deere hard. The company has already paid out $300 million in additional costs due to these tariffs in 2025 alone, and it expects that figure to double by year’s end. As TheFly noted, "Higher tariffs on steel and aluminum have cost the company $300 million so far, with another $300 million impact expected by the end of the year." This $600 million blow is not just a line item on a balance sheet—it’s a force reshaping the entire industry.
It’s not only the manufacturers who are feeling the pinch. American farmers, the backbone of John Deere’s customer base, are confronting their own set of challenges. Overseas demand for some U.S. crops has dwindled, a direct consequence of ongoing trade disputes and retaliatory tariffs from key foreign markets. Lower crop prices have left many farmers tighter on cash, making them less willing or able to purchase new equipment. As TheFly succinctly put it, "Lower crop prices are causing farmers to have less cash and be less willing to purchase new equipment."
For companies like John Deere, these converging pressures have translated into tough decisions. In the summer of 2025, the company laid off 238 employees across its factories in Illinois and Iowa, a sobering sign for communities that have long depended on manufacturing jobs. The layoffs, reported by The New York Times, underscore the ripple effects that trade policy and global market shifts can have on local economies.
Meanwhile, the secondary market for tractors and farm equipment is booming. Dealers like Enlow are seeing increased demand from buyers who, faced with sticker shock at new equipment prices, are turning to reliable used machines. "The increases in new pricing has definitely driven people back to the used market," Enlow reiterated. This trend is not only helping used equipment dealers but also keeping older machinery in service longer, a shift that could have long-term implications for everything from repair businesses to parts suppliers.
But the story doesn’t end there. The broader implications for American agriculture and manufacturing are profound. The increase in new tractor prices—at least 60 percent over eight years, according to the University of Illinois Extension—has forced a reckoning within the industry. Farmers must now weigh the benefits of new technology and efficiency against the realities of tighter margins and uncertain markets. For some, the answer is clear: stick with what works, even if it’s got a few more miles on the odometer.
John Deere’s predicament is emblematic of a larger trend affecting other heavy manufacturers as well. As noted in industry analyses, companies like Caterpillar are facing similar headwinds, with tariffs and global competition putting pressure on profits and employment. The challenges facing John Deere are not unique, but their impact is magnified by the company’s central role in the agricultural sector.
The decline in overseas demand for American crops, another consequence of ongoing trade disputes, has only added to the woes of both farmers and equipment makers. With less cash flowing into rural communities, the ripple effects are felt everywhere from local banks to seed suppliers. The feedback loop is clear: lower crop prices mean less money for new equipment, which in turn puts pressure on manufacturers and their workers.
Despite these challenges, there are signs of resilience and adaptation. John Deere’s leadership has announced strategic changes aimed at weathering the current storm, focusing on efficiency and innovation to stay competitive. As highlighted in recent earnings calls, the company is taking steps to adjust to the new reality, even as it contends with the immediate impact of tariffs and slowing sales.
For now, though, the mood at places like Enlow Tractor Auction reflects a cautious pragmatism. Buyers are looking for value, and sellers are adapting to a market where reliability and affordability trump novelty. The days of easy profits and ever-increasing sales of new equipment may be on hold, at least for the time being.
As the dust settles, one thing is clear: the intertwined fates of American farmers, equipment dealers, and manufacturers like John Deere are being reshaped by forces far beyond any single field or factory. The choices made in boardrooms, auction lots, and farmhouses across the country will determine not just the future of a storied brand, but the trajectory of American agriculture itself.
While the challenges are steep, the industry’s response—marked by adaptation, innovation, and a return to basics—offers a glimpse of hope for those willing to navigate the shifting landscape.
