AMTEC’s 2025 Report Insights on Financial Effects on Farmers Machinery Choices

The decision to invest in farm machinery is one of the most significant financial choices a farmer can make. Whether to purchase new or used farming equipment is influenced by various factors, from economic conditions to government policies. In 2024, UK farmers have faced mounting financial pressures, including rising machinery costs, unpredictable weather, and evolving agricultural policies. These challenges have reshaped purchasing behaviours, driving many to reconsider their options carefully.

With farm equipment now costing 40-50% more than five to seven years ago, farmers must weigh up operational efficiency, long-term costs, and financing availability. AMTEC conducted a survey in December 2024 to better understand how these economic factors are impacting farmers' machinery investments. This blog explores the key findings, shedding light on the motivations and constraints shaping farmers’ decisions.

The Financial Crossroads: Cost vs. Condition

For farmers, machinery is more than just equipment—it is the backbone of their livelihood. The decision to buy new or used is rarely taken lightly, as it directly affects both productivity and financial stability. According to our survey, price and condition emerged as the top concerns for over half of respondents.

Some farmers prioritise a machine’s condition above all else, with 26% citing it as their main purchasing factor. As one farmer responded, ‘when purchasing machinery such as cultivators, a well-maintained machine will last just as long as a new one, and the wearing parts have to be replaced on both, but the purchase cost is significantly less.’ Conversely, 25% of farmers identified price as the ultimate deal-breaker. Given that the cost of new machinery has soared in recent years, this isn’t surprising. Farmers are acutely aware that investing in new equipment means higher initial costs, which can strain already tight budgets.

Despite widespread financial challenges, only 2% of farmers listed financial support as a key influence on their purchasing decisions. This raises an important question: why are government-backed funding schemes, such as the Farming Equipment and Technology Fund (FETF), not playing a larger role?

The Impact of Economic Pressures: Why Used Machinery is Winning

An arable farmer in Lincolnshire who responded to our survey shared how inflation has completely changed his approach to purchasing machinery. “A new combine harvester that cost me £250,000 a few years ago is now over £350,000,” he said. “I can’t justify that kind of expense, so I’m looking at second-hand options.” His situation echoes the sentiments of 69% of survey respondents, who indicated that inflation has pushed them toward purchasing used machinery instead of new.

Beyond just cost, unpredictability is another major factor. The UK has faced increasingly extreme weather patterns, and 2024 was no exception. Unprecedented wet conditions delayed planting schedules and affected yields, putting even greater financial pressure on farmers. In such an uncertain climate, locking capital into brand-new machinery feels riskier than ever.

Another key trend emerged from our data: when government loans are not applicable, 77% of farmers turn to used machinery. This suggests that while financial aid is available, it does not always align with farmers’ needs or the practical realities of running a farm.

Resale Value and Maintenance: The Long-Term View

Beyond immediate costs, many farmers think ahead to the long-term implications of their purchases. More than three-quarters of respondents said resale value plays a crucial role in their decision-making. Buying a piece of machinery is not just about its function today—it’s an investment that should hold its value for future resale or trade-in opportunities.

According to our survey, maintenance costs weigh heavily on farmers’ minds. The survey found that those who prioritise long-term reliability outnumber those who don’t by more than three to one. For many, the fear of costly breakdowns and repairs makes a well-cared-for used machine a smarter purchase than an untested new model. This highlights how farmers prioritise operational efficiency, seeking ways to minimise unexpected expenses and keep their farms running smoothly.

A Market in Flux: The Bigger Picture

The broader agricultural machinery market reflects these individual concerns. Poor finances and low confidence, particularly in the arable sector, led to November 2024 recording the lowest number of new farm tractor registrations since December 2000 (fwi.co.uk). This downturn in new machinery purchases suggests that many farmers are either holding onto older equipment for longer or turning to second-hand alternatives.

We’re finding that our customers need flexibility” says Jason White of AMTEC “whether it’s in the way that machinery is financed or the variety of second-hand machinery options available. We need to help create ways for farmers to get the machinery they need in these difficult times.”

Looking Ahead: Navigating an Uncertain Future

The landscape of agricultural machinery investment is complex and influenced by various economic factors. Farmers must navigate rising costs, policy changes, and market uncertainties. Balancing the immediate financial benefits of used machinery against the potential long-term advantages of new equipment requires careful consideration.

In the face of these challenges, staying informed is more critical than ever. Whether through market analysis, financial planning, or exploring alternative funding sources, farmers who take a strategic approach to their equipment investments will be better positioned to maintain productivity and financial stability.

As the industry evolves, one thing remains clear: farmers are resilient, adaptable, and resourceful. With the right knowledge and support, they will continue to make decisions that best serve their businesses—new or used, rain or shine.