Tractor registrations slump to 24-year low

New tractor registrations have slumped to their lowest level for 24 years, providing further evidence that farmers are cutting back on investment as financial and political pressures take their toll.

Latest figures from the Agricultural Engineers Association (AEA) show that just 1,466 units were registered in March 2025 – more than 24% down on the same month last year.

See also: FW Sentiment Survey – optimism in short supply for 2025

For the first quarter of the year, the figure stands at 2,228 units, some 23% lower than the same period of 2024 and the lowest quarterly figure recorded since 2001.

AEA economist Stephen Howarth says the downturn is a continuation of the trend seen at the end of last year, reflecting both the financial squeeze on arable farmers in particular, and the general sapping of confidence across the industry since last autumn’s Budget.

“Cereal growers have experienced two bad years financially, and they are typically among the bigger buyers of tractors,” he said.

“But there is no doubt that policy changes have hit confidence too and have had a part to play in holding back investment.

“It is clearly a very difficult market.”

According to Mr Howarth, regional analysis shows that the downturn is being felt across the board.

“Even though livestock farmers are arguably having a better time of it in terms of prices and margins, tractor registrations are lower in all parts of the country.”

Budget impacts

The NFU has repeatedly warned about the impact of last autumn’s Budget on farmers’ confidence and willingness to invest.

NFU president Tom Bradshaw said: “Farmers are facing a relentless barrage of extra costs, from the family farm tax, to national insurance rises, and higher taxes on essential vehicles like double cab pickups.

 “These come on top of huge uncertainty over environmental schemes and drastic cuts to direct payments.

“Since the election, policy after policy has eroded trust, driving farmer confidence to a record all-time low.

“The abrupt closure of Sustainable Farming Incentive applications, despite promises of six weeks’ notice, has only made matters worse.

“Without a clear commitment (from government) to back British farming, we risk undermining investment, productivity and ultimately, domestic food security.”