Farmers are heading into another challenging year. What can they do to stretch their equipment buying dollars in 2026? Brad Zwilling, vice president of data analysis at the Illinois Farm Business Farm Management, recommends reconsidering long-term capital budgets by going back to the drawing board.
“If you haven’t already, probably the first thing I would do is that long-term capital budget,” Zwilling said. “Get yourself lined out for the next five to 10 years and know when you think that those pieces of equipment have to be replaced.
“Can my combine go another year? Or if I’m buying two combines, do I go back down to one?”
That might mean identifying machinery that must be replaced soon and those that can survive the downturn. Consider holding onto older equipment for a little while longer. Or signing a short-term lease could make sense if values drop later. Browse older vehicles and implements, or maybe hire custom work as an alternative to purchasing.
If possible, Zwilling said waiting things out to strategically purchase later might be the best option. While he expects general price softening this year — because of decreased purchasing in 2025 — the current costs will probably remain elevated for the most part.
Even so, equipment values aren’t universal. Investment flexibility could produce dividends. If harvester prices remain high, for example, perhaps planters will become discounted.
Shop around
“Be willing to shop around. Know your interest rate. Know what that interest rate impact is going to be, especially if you haven’t bought equipment for the last couple of years,” Zwilling said, noting the equipment market’s structure has changed from high-demand to necessity-driven. Tax-incentivized purchases have also shifted, despite full bonus depreciation’s return under the One Big Beautiful Bill Act.
At least in part, that’s because equipment prices continue trending upward, as do interest rates. While spreadsheets aren’t glamorous, using them to figure out equipment savings starts in the farm office well before negotiations begin.
“Know your numbers and be willing to walk away from a purchase if the numbers don’t work out for you. Maybe you can find another number [later] or something else to replace this year,” he noted.
Regardless of this year’s spending strategy, Zwilling stressed a need to right-size equipment, matching actual farm needs that could soon evolve based on 2026’s overall financial outlook. Does it make sense to buy one bigger machine instead of two smaller ones? Persnickity equipment management becomes particularly necessary when finances are tight, especially for those who were already operating on thin margins before the ongoing economic lull began.
“If you’re a smaller farmer or a younger farmer, you’re going to have a tougher time getting into that equipment. Make sure you really understand your numbers,” Zwilling said. “You hear about sharing equipment, but in reality, how well does that work because of the different structures of where people farm, weather patterns and who gets what when? Who gets it when it’s good and who gets it when it’s poor weather?”
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