Wedoany.com Report-Apr. 8, New tractor registrations in the UK have fallen to their lowest in 24 years, reflecting tough financial times for farmers. In March 2025, only 1,466 agricultural tractors were registered, a drop of nearly 25% from March 2024, according to the Agricultural Engineers Association (AEA). This marks the smallest March total since 2016. For the first quarter of 2025, registrations totaled 2,228 units, down 23% from the same period in 2024, making it the weakest first quarter since 2001.

Tractor registrations have plunged to a 24-year low, figures show

The AEA noted: “March is usually the peak month for registrations of new agricultural tractors and it looks like this year is no exception, with 1,466 machines logged, the most in any month since the same time last year.” Yet, it added: “That total was down by nearly a quarter, compared with March 2024 though, and was the lowest figure for the time of year since 2016.” This decline aligns with broader challenges in the farming sector.

Farmer confidence has reached an all-time low, surpassing last year’s record, per a recent NFU survey. It found 85% of farmers expect higher inheritance tax burdens, with 32% planning to cut investment as a result. Most respondents (88%) said the gradual removal of direct payments would harm their operations. Additionally, 76% of farm employers anticipate negative effects from rising National Insurance contributions for employers. Of those, 65% foresee profit drops, and 43% expect to scale back investments to manage the extra costs. A strong majority (84%) also view ongoing regulations as a persistent challenge to their businesses.

NFU president Tom Bradshaw stated: “No business can be expected to plan, invest, grow and increase its economic contribution, whilst hitting government environmental targets, when it is being slammed time and time again by policies which strip away its profitability.” His remarks highlight the strain felt across the industry.

The drop in tractor registrations signals reduced spending, tied to these financial pressures rather than shifts in exports or consumption. Farmers are adjusting to cost increases and policy changes, impacting equipment purchases. The AEA and NFU data together paint a picture of an agricultural sector grappling with uncertainty, where investment hesitancy reflects broader economic concerns rather than trade dynamics. This situation underscores the need for stability to support farming operations in the UK.