FCC Expects Weak Farm Equipment Sales in 2026

OTTAWA, Canada — Farm Credit Canada (FCC)., expects Canada’s new farm equipment market to remain under pressure in 2026, though pockets of strength—particularly in livestock farming—offer some cautious optimism.

According to FCC senior economist Leigh Anderson, the sector is facing a prolonged slowdown as farmers grapple with declining crop prices, rising operating costs, tighter margins, and ongoing trade uncertainties. Rapid increases in machinery prices have also led to “sticker shock,” pushing many producers to delay purchases or shift from new equipment to the used market.

Despite the broader weakness, livestock farming stands out as a bright spot. Strong profitability in beef and dairy operations, supported by record-high cattle prices, drove increased demand in 2025 for certain types of equipment, especially in eastern Canada. Imports of new balers rose 5%, while new forage harvester imports jumped 23%. Anderson notes that this momentum could extend beyond haying equipment, potentially supporting demand for tractors and combines among livestock producers in 2026.

Outside the livestock segment, FCC anticipates softer sales across most equipment categories. Sales of tractors above 100 horsepower are projected to decline 5.6% in 2026 compared with 2025, and nearly 20% compared with the five-year average. Combine sales are expected to fall 6.7% year over year and remain well below historical norms.

One exception may be smaller tractors under 40 horsepower, where FCC forecasts a 3.1% increase in unit sales in 2026. This growth is partly attributed to inventory being redirected from the U.S. market, where new farm equipment sales collapsed by an estimated 25% to 40% in 2025.

While FCC did not provide a comparable overall decline figure for Canada, the outlook suggests that the machinery market will remain subdued, with livestock-driven demand offering the main source of resilience in the year ahead.

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