North America Agricultural Machinery Market Report 2026-2031: Robust Farm-Income Outlook and Subsidy Programs

The "North America Agricultural Machinery - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

The North America agricultural machinery market is projected to expand from USD 54.3 billion in 2025 to USD 57.5 billion in 2026, estimated to reach USD 76.57 billion by 2031, reflecting a 5.9% CAGR over 2026-2031. This growth trajectory highlights the ongoing demand for mechanization despite financial challenges like heightened interest rates and volatile commodity prices that curbed capital expenditure in 2024.

Factors such as persistent labor shortages, federal subsidies encouraging fleet renewal, and the swift adoption of precision agriculture technology support increased equipment orders. Showcases of autonomous capabilities at CES 2025 have prompted farms to prioritize software compatibility with hardware advancements. Moreover, the need for modernized irrigation systems, particularly in drought-prone areas of Mexico, expands the market for specialized equipment manufacturers. To stay competitive, leading OEMs offer bundled financial solutions, software subscriptions, and dealer support to stabilize revenue streams.

Market Segmentation

The market report segments the North America Agricultural Machinery Market by type (Tractor, Equipment, Irrigation Machinery, Harvesting Machinery, Haying and Forage Machinery, Other Types) and geography (United States, Canada, Mexico, Rest of North America). The market forecasts are provided in USD value.

Market Trends and Insights:

• Robust Farm-Income Outlook and Subsidy Programs: Federal depreciation incentives and direct grants bolster capital spending. The USDA Climate-Smart Commodities initiative has allocated over USD 3 billion since 2024 for equipment promoting efficiency and lower emissions. With Section 179 rule allowances, growers can leverage tax deductions up to USD 1.16 million annually, countering higher borrowing costs. Many mid-sized growers advance purchases to maximize grant and tax benefits. Dealer feedback shows increased demand for mid-horsepower tractors with telematics to meet sustainability requirements. Consequently, the market enjoys a steady influx of subsidized orders, mitigating cyclical demand fluctuations.