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Tractor market hits 25-year low as confidence wanes
Friday, 11 July 2025
UK tractor registrations have fallen significantly to their lowest level in over two decades. The latest data from the Agricultural Engineering Association (AEA) reveals not only a sharp drop in overall sales but also shifting investment patterns and widening regional disparities across the sector.
Key points
- UK agricultural tractor registrations (>50hp) fell by 23% year-on-year in Q1 2025
- March 2025 registrations were down 24% compared to March 2024
- Total rolling registrations (12 months) were down 16% in June 2025 compared to June 2024, the lowest figure since 1998
- Average horsepower rose further to a record 179.7hp in 2024 before dropping to 173.8hp in the first half of 2025
Challenging conditions hit tractor sales in 2025
The tractor market has continued to struggle into 2025, following a difficult year for farm finances in 2024. In the first quarter of 2025 (Jan–Mar), UK agricultural tractor registrations (>50hp) fell by 23% compared to the same period in 2024.
2,228 units were registered between January and March, compared to 2,891 units a year earlier.
Monthly UK tractor registrations from (Jan 2023 to June 2025)
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Source: AEA Economics Department/DVLA
The rolling 12-month total of tractor registrations stood at 9,228 units at the end of June 2025, a drop of 16% compared to a year earlier, and well below the 11,500–12,100 range seen prior to 2024. This marks the lowest moving annual total since 1998.
Market conditions remain dominated by the legacy of weaker commodity prices, adverse weather during 2024, stubborn costs, and political and economic uncertainty affecting farmer confidence.
Regions traditionally reliant on smaller and mid-sized tractors have been among the hardest hit in 2024, particularly the South West although 2025 has shown a different picture with more details further below.
Bigger tractors dominate in 2024 as smaller sales shrink
Despite the sharp drop in unit numbers, there is a continued trend towards larger and more powerful machines.
The average horsepower of agricultural tractors registered during 2024 rose to 179.7hp, up from 173.8hp in 2023 and continues a long-term upward trajectory.
Average horsepower of UK agricultural tractor registrations (>50hp) from 2015 to 2024
 from 2015 to 2024.png)
Source: AEA Economics Department/DVLA
Within the figures for 2024, tractors over 240hp were the only segment to record growth, with registrations up by 14% year-on-year.
By contrast, registrations of tractors below this threshold fell by around 17%. This pattern appears to have extended into early 2025, suggesting that smaller and mixed farms, who typically rely on lower-horsepower machines, are feeling the financial squeeze most acutely.
As a result, although overall tractor numbers have declined sharply, the machines being bought are increasingly geared toward larger-scale operations, offering higher capacity and efficiency.
The total horsepower registered during 2024 was 1.84 million hp, down 11% from 2023.
However, given the sharper fall in unit numbers, the overall power per machine has continued to increase, reinforcing the impact on investment strategies of small to medium-sized enterprises as it is larger outfits that are better positioned to invest.
Distribution of UK agricultural tractor registrations by horsepower (>50hp) from 2015 to 2024
 from 2015 to 2024.png)
Source: AEA Economics Department/DVLA
2025 sees significant drop in share for higher horsepower tractors
However, the latest figures for 2025 show a different picture. Between January and June 2025, larger horsepower tractors have seen a significant drop in sales following the continued fall in overall tractor sales.
Sales figures for tractors above 240hp for the first 6 months of 2025 have dropped by 38% compared to the first 6 months of 2024, from 887 sales to 553.
The share of tractors above 240hp fell as well from 15% of total tractor sales above 50hp to 11% over the same period showing a reverse of 2024’s picture.
Average horsepower has now fallen from 179.7hp in 2024 to 173.8hp in the first 6 months of 2025.
UK Agricultural tractor registrations by horsepower (>50hp) changes from Jan–Jun 24 to Jan–Jun 25
 changes from Jan-Jun 24 to Jan-Jun 25.png)
Source: AEA Economics Department/DVLA
2024 sees significant falls in tractor sales across almost all regions
Most regions saw year on year declines in 2024, reflecting reduced machinery investment across the sector.
Notably, the South West (26%) and South Wales (24%), both regions typically dominated by livestock farming, experienced the steepest falls, indicating that even traditionally more stable livestock areas were not immune to the economic pressures affecting agriculture.
In contrast, North Scotland saw a modest increase (6%), and Northern Ireland remained level (0% change).
The data highlights how widespread the decline has been, though its severity varied based on local farm structures and economic resilience.
Change in UK agricultural tractor registrations by region (>50hp) from 2023 to 2024
 from 2023 to 2024.png)
Source: AEA Economics Department/DVLA
Regional pressures deepen in early 2025
Data for the first half of 2025 (Jan–Jun) indicates that regional pressures have intensified.
Areas such as Yorkshire & Humberside (-40%), the West Midlands (-32%), and the East Midlands (-31%) recorded the steepest year-on-year declines, highlighting a continued reluctance to invest in machinery across key production zones when compared to the first half of 2024.
The North East also saw a sharp contraction (-36%), suggesting broad-based financial strain across northern arable and mixed farms.
Interestingly, the South West, previously the hardest-hit region in the 2024 vs 2023 comparison, recorded only a marginal fall (–0.9%) in the latest period, hinting at a possible stabilisation in this traditionally livestock-dominated region.
Overall, the 17.2% drop in tractor registrations for Jan–Jun 2025 points to ongoing caution and capital restraint across the UK farming sector.
Change in UK agricultural tractor registrations by region (>50hp) from Jan–Jun 24 vs Jan–Jun 25
 from Jan-Jun 24 vs Jan-Jun 25.png)
Source: AEA Economics Department/DVLA
Conclusion
With 2025 figures showing no immediate sign of recovery, the market outlook remains uncertain.
Future tractor demand will largely depend on improvements in farm profitability and renewed confidence in investment across the agricultural sector.
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