(Nelson Zandbergen photo)
Farmers Forum staff
OTTAWA — The Canadian farm equipment market faces a sobering 2026, although there is also reason for cautious optimism because of demand from livestock farmers, according to Farm Credit Canada’s latest outlook.
The recent economic analysis by senior economist Leigh Anderson predicts the continuation of a multi-year slowdown in new equipment sales because of harder times in much of agriculture. Sticker shock at rising machinery prices has exacerbated a trend away from new purchases toward used equipment. Throw in declining crop prices, increased operating costs, lower profits and other factors driving down farmer confidence, including trade-related uncertainties, and FCC foresees more softness in the new machinery market in 2026.
A likely exception to this is the strong livestock-farming sector. In 2025, eastern Canadian operators in particular drove imports of new balers (up 5 %) and new forage harvesters (up 23 %), fueled by record-high cattle prices and a robust outlook for beef and dairy operations. Anderson emphasizes that strong livestock profitability could spill over, encouraging upgrades in tractors and combines beyond just haying equipment in 2026.
FCC otherwise predicts lower numbers across most equipment categories. Unit sales for 100-plus horsepower tractors in 2026 are projected to be down 5.6 % from 2025 (and down 19.5 % from the 5-year average), while combines could see a 6.7 % drop (down 13.5 % from the 5-year average). Smaller tractors under 40 HP, however, may buck the trend with a 3.1 % increase over 2025, partly due to redirected inventory from a weakening U.S. market.
In the U.S., all new farm equipment sales plummeted 25 to 40 % in 2025. An overall comparative figure for Canada was not included in Anderson’s report.
