Agricultural Equipment Finance Market Size, By Equipment, By Financing, By Borrower, By Finance Provider, By Financing Term, Growth Forecast 2025 – 2034

Agricultural Equipment Finance Market Size

The global agricultural equipment finance market was valued at USD 74.5 billion in 2024 and is estimated to register a CAGR of 6.3% between 2025 and 2034. Increased global population is one of the major drivers of agriculture equipment financing growing population directly leads to increased food demands, thus creating a need for higher agricultural production. The report published by the United Nations reported that the global population estimates were around 8.2 billion in 2024 and is expected to reach approximately 9.7 billion by 2050. This number is further expected to rise to nearly 10.4 billion by mid-2080.
 

An increase in the global population directly creates demand for higher food production requirements. Farmers need to improve crop yields and operational efficiency to keep up with this demand. This leads to the purchase of advanced agricultural machinery like tractors, harvesters, and irrigation systems which are usually bought on loan or leased. In addition to this, to achieve competitive yields and remain relevant in the market, farmers are now using precision farming technologies as well as smart equipment such as GPS guided tractors, drones, and automated systems. All these cutting-edge technologies are expensive and require financing options, thus driving growth in the agricultural equipment finance market.
 

Various governments are providing subsidized loan plans or have set low interest rates for supporting the purchase of agricultural equipment. The Indian central government provides subsidies of about 50% to 80% for the purchase of agricultural machinery under SMAM scheme, with special preference for women farmers. This helps to reduce the financial burden on farmers and motivates them to think of borrowing, increasing the demand for market.
 

Agricultural Equipment Finance Market Trends

• The availability of financing options such as loans, lease, and hire purchase has made the purchase of advanced farm equipment easier and affordable. Many small and medium-sized farmers, prefer these options as they help them buy these advanced equipment without worrying of finances. Demand for these models is growing as they provide farmers with greater financial flexibility by providing access to advanced machinery without the requirement for full ownership.
   
• Smart farming equipment is changing agricultural practices and processes drastically. New autonomous vehicles were introduced by John Deere during January 2025, which include the 9RX tractor designed for large-scale agricultural use, the 5ML tractor for orchards, an electric landscaping mower, and an autonomous dump truck for quarrying. These machines are equipped with advanced autonomy kits which enable various operations, including maneuvering through narrow orchard lanes and quarry terrain.
   
• These technologies and machines being expensive create a demand for agriculture equipment finance options such as loan, lease, and other borrowing services. This helps farmers purchase advanced machinery without feeling pressured about its finances.
   
• The adoption of precision agriculture, which includes sensors, data analysis, drone technology, and GPS systems, is increasing as it supports helps in increasing productivity while cutting costs for farmers. The precision farming market is expected to increase from USD 10.5 billion in 2024 to USD 30.4 billion in 2034, which indicates a growth of 11.5%.
   
• Financing options for these technologies is also increasing as farmers need financial aid to implement these services in existing systems or buy new instruments for their adoption.
   
• There is a growing trend of adopting sustainable farming and environmentally friendly solutions in the agriculture sector. This trend is being supported by government and financial institutions by supporting financial support to buy green technologies. Thus, farmers are now demanding products such as tractors with reduced emission or water saving irrigation systems, which require specialized financing for investing.
   

Agricultural Equipment Finance Market Analysis

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Based on equipment, the market is segmented tractor, harvester, livestock equipment, irrigation system, planting and seeding equipment, fertilizing and spraying equipment, precision agriculture technology, and others. In 2024, the tractor segment held a market share of over 15% and was valued at around USD 14 billion in 2024.
 

• Tractors play an important role in farm activities as they are used for various activities such as plowing, tilling, planting, and harvesting. Since they are used for different activities, they play an indispensable role for the farmer thus led to their heavy demand.
   
• As the technologies and components used in tractors advance, they become expensive and thus create a need for financing support for farmers. This is especially true for models designed specifically for large-scale commercial farming. The high cost of these makes farmers seek out financing loans, leasing schemes, or even hire purchase agreements, creating a larger need for financing options in the tractor industry.
   
• Tractors are now integrated with technologies such as GPS systems, autonomous functionalities, and precision farming tools. MKR Hartamas (MKR) launched the TerraGlide EV40 which is first electric tractor launched in Malaysia. This fully electric tractor supports Malaysia’s Dasar Agromakanan Negara 2.0 policy which supports the idea of adopting carbon emission free machines into the agricultural system. The TerraGlide EV40 in September 2024 also equips farmers with alternative traditional farming machinery that makes climate change mitigation feasible.
   
• As more innovative features are added in the farm equipment such as tractors, farmers are looking forward to invest in these machinery, thus creating demand for agricultural equipment financing.
   

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Based on financing, the agricultural equipment finance market is segmented as loan, leasing, hire purchase, and others. The loan segment dominated in 2024 with a market share of around 45%.
 

• Commercial banks and farm lenders often provide loans for specialized agricultural machinery within their farm financial services due to regulatory and supervisory institutional frameworks. This makes loans available to farmers across the regions, including those in developing economies.
   
• Loans grant farmers the ability to pay off the debt over time, thus allowing them to take full ownership of the equipment. This is especially attractive for farmers who are looking for long-term investments. Equipment ownership can offer returns over extended durations, thus leading to the adoption of loans as a financing option.
   
• There are various government sponsored programs that offer subsidized interest rates or very low-interest loans for the purchasing of agricultural equipment. This helps farmers consider the option of loan while purchasing farm equipment. These services make loans more affordable for farmers, thus increasing the number of farmers willing to buy modern technologies for their operations.
   
• As part of the Auxiliary Services of USDA, the US Government offers loans to buy farm machinery, livestock, seeds, and other supplies. The Farm Operating Loan Programs provide up to USD 400,000 in loans to farmers. This money is allocated through Congressional appropriations of the USDA budget. Also, the FSA’s Guaranteed Farm Loan Programs enable family farmers and ranchers to obtain more affordable loans through USDA-approved commercial lenders to purchase farmland or to finance agricultural production.
   

Based on finance provider, the agricultural equipment finance market is segmented as commercial banks, government agencies, equipment manufacturers, specialized farm lenders, and others. The commercial banks segment led the market in 2024
 

• Commercial banks have strong financial networks and infrastructure which helps them offer different loan options for agricultural purposes. Their strong presence and financial position helps them gain trust of those farmers looking for loans but are reluctant to avail loan.
   
• In January 2025 Indian Bank entered a partnership with Escorts Kubota Limited (EKL) to support and improve the tractor loan financing scenario and support farmers and dealers financially in India. The purpose of this partnership is to support rural economies by providing easily accessible and affordable loans and working capital.
   
• Commercial banks provide a range of farmer friendly loans with attractive interest rates, flexible repayment schedules, and longer loan terms. These schemes are designed such that they match the cash inflows of farmers in various periods of time.
   
• Various commercial banks work with the government and agricultural bodies to provide subsidized loans or guarantee schemes. These collaborations help reduce the burden that banks face while offering cheaper financing options to farmers thus increasing their dominance in the agricultural equipment loan market.
   

Based on borrower, the agricultural equipment finance market is divided into individual farmers, large agricultural corporations, and cooperatives and farming groups. The individual farmers segment held a major market share in this segment in 2024.
 

• Small and medium-sized farms represent the majority of agricultural operations globally. They depend on credit to purchase all the necessary equipment such as tractors and harvesters, thus making them major loan seekers in this market.
   
• For these farmers, agriculture is a major or sometime the only source of income. Investing in this advanced farming machinery significantly helps them significantly improve their operations and thus increase their output and income. Hence, these farmers actively look to invest in this equipment and thus adopt these funding options to purchase tools and implements that would increase productivity and ensure sustainability.
   

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North America dominated the global agricultural equipment finance market with a major share of over 35% in 2024 and U.S. led the market in the region and was valued at around USD 19.5 billion in 2024.
 

• The U.S. holds a significant position in the agriculture sector as it is one of the major producer and exporter of agricultural products. In 2022, the country recorded highest sales of agricultural products, which summed up to USD 19.173 billion, as reported by the United Nations Food and Agriculture Organization.
   
• The country also requires high number of agricultural equipment to meet both domestic and global market demands. This leads to the demand for high-efficiency, high-capacity machinery to enhance production and export levels which increases the demand for financing agricultural equipment.
   
• In addition to providing financing for new equipment, there is also a high demand for used agricultural equipment financing in the country. Farmers often buy and use second-hand machinery, and financial institutions provide funding for these purchases which increases the demand for agricultural equipment financing in the country.
   
• America holds a leading position in various agricultural products and services which includes precision farming equipment, GPS and automated machinery. There is a constant investment in research and development activities in farming technologies which increases the need for financing to acquire modern equipment. These factors also contribute to the demand for farming equipment financing services in the country.
   

The growth forecast for the agricultural equipment finance market in Germany from 2025 to 2034 is highly encouraging.
 

• FAO reported that in of 2022, Germany was ranked fourth in the agricultural exports list with their total exports being USD 9,181 billion in that particular year. To maintain and improve this export level and production processes, there is a strong dependency on machinery which in turn leads to the need for financing solutions for agricultural equipment.
   
• Germany is home to leading manufacturers of agricultural machinery including John Deere and CLAAS and Fendt. Total exports agriculture machinery of the country was approximately USD 14 million according to CEMA report of 2022. This string production level and innovation also creates demand for efficient financing options, thus leading to demand for this market.
   
• The agricultural sector of Germany highly advanced and highly mechanized for all level in farming from small to large farms. Tractors, harvesters, and other specialized machinery are used for efficient farming. The modern mechanization level creates demand for strong agricultural equipment finance for innovating latest technology in farming, which enhances the financing options for agriculture equipment purchase.
   

China is expected to show remarkable and promising development in the agricultural equipment finance market from 2025-2034.
 

• The Observer Research Foundation (ORF) reported that China has reached a 95% level of food self-sufficiency by meeting food requirements of almost 1.4 billion of their population. The growing population of China puts heavy pressure on the food production levels, leading to a greater demand for better and efficient farming techniques. Growing trend towards advanced farming options to fulfil food production requirements is leading to the advancement of agricultural machinery which leads to the demand for financing options that meet the affordable equipment needs for farmers.
   
• China is making significant investments in self-sufficiency by modernizing its agricultural sector, including the adoption of sophisticated machinery and technology. The increased mechanization push in rural areas is leading to a greater need for financing modern farm equipment demands.
   
• Smart tractors, GPS controlled machinery, and automated systems such as drones are increasingly being integrated into precision agriculture. Farmers require financing to acquire these innovative instruments, and with improvements in technology, the farmer need for funds to support these high-tech farming solutions is growing.
   

The agricultural equipment finance market in Mexico is expected to experience significant and promising growth from 2025 to 2034.
 

• Mexico boasts a wide range of agricultural activities, and it is one of the world’s foremost exporters of agricultural products, especially to the US and other global markets. In order for them to compete in these global markets, Mexican farmers need to adopt advanced machinery technology. The constant need to enhance productivity to meet export requirements creates the demand for financing agricultural equipment.
   
• There is an increasing trend of mechanization in Mexican agribusiness, particularly in large commercial farms. An increase in the need for efficient farming requires more complex farming equipment. Farmers are increasingly turning to financial institutions to obtain funds to purchase such equipment such as tractors, harvesters, and irrigation systems.
   

Agricultural Equipment Finance Market Share

Top 7 companies leading the agricultural equipment finance industry in 2024 were Wells Fargo, Kubota Credit Corporation, Agricultural Bank of China, AGCO Finance, John Deere, Rabo AgriFinance, and CNH Industrial Capital. Together, they held over 30% market share.
 

• Wells Fargo holds a significant position in the market due to its strong service network and experience in lending and leasing farming equipment. They are known to provide farmers for their flexibility regarding repayment structures.
   
• Kubota Credit is a farmer-focused financing provider that offers customizable loans and leases. Through its connected services with the Kubota family of products, the company can provide specialized financing, which positions them well in the industry.
   
• Agricultural Bank of China holds a significant market share as it majorly operates in the agriculture industry banking segment in China. The bank’s lending products are focused on the farming community an includes subsidized loans, low interest loans, and other financing options that support mechanization and modernization of farming activities.
   
• AGCO Finance provides farmers with loans, leases and purchase agreements for the AGCO and third-party equipment, which strengthens its position in the market. AGCO Finance offers tailored financing solutions for equipment sold under AGCO’s brand and others.
   
• John Deere is one of the largest and well-known manufacturers of agricultural machinery in the world. The company has an extensive network of dealerships and agricultural equipment merchants, further enhanced by their own financing division, John Deere Financial. The firm offers tailored financing options for the specialized equipment, which includes loans, leases, and maintenance plans that allow farmers to gain access to and take care of top-tier machinery.
   

Agricultural Equipment Finance Market Companies

Major players operating in the industry include:

• AGCO Finance
• Agricultural Bank of China
• American AgCredit
• Banco Santander
• CNH Industrial Capital
• DLL Group
• John Deere
• Kubota Credit Corporation
• Rabo AgriFinance
• Wells Fargo
   

• Wells Fargo, BNP Paribas, and Regions Bank hold significant market share in agricultural equipment finance. With their strong banking networks and advanced customer relationship management systems, these banks develop numerous loan products that enable farmers to access relevant financing from these banks.
   
• John Deere, Kubota, and AGCO hold a significant share of this market as they offer affordable equipment by providing accessible loan services by extending in-house financing through their respective financial divisions. These manufacturers provide tailored loans, leases, and hire purchase agreements pertaining to their equipment, which results in easier access to financing.
   
• Online lending platforms are gaining prominence as they are changing the operations of agricultural equipment finance services. New start-ups and fintech firms are providing loans and leases with less restrictive contracts and minimal documentation. The market acceptance for these platforms is due to their speedy fund disbursement and low interest rates availability.
   

Agricultural Equipment Finance Industry News

• In May 2024, Axis Bank partnered with VST Tillers Tractors Limited to offer financial plans to farmers willing to purchase tractors and other farm equipment. This partnership is formed with the aim to offer easy, affordable, and flexible credit options to farmers all over India.
   
• In August 2023, Kubota Agricultural Machinery India Pvt. Ltd. (KAI) signed a Memorandum of Understanding (MoU) with Bank of Baroda (BOB) to improve the tractor and farm machinery financing for the Kubota brand. This partnership seeks to provide easy and economical financing options to Indian farmers with the help of Bank of Baroda’s over 8,200 branches in the country.
   
• In March 2023, Mahindra & Mahindra’s Farm Equipment Sector partnered with State Bank of India (SBI) for easy financing of tractors and other farm machinery across India. This collaboration seeks to improve the financial services extended to farmers so that they may obtain these services in an easy, inexpensive, and flexible manner.
   
• In July 2023, Indian Bank setup agreements with TAFE (Tractors and Farm Equipment Limited) and TAFE Motors and Tractors Limited (TMTL) to facilitate the financing of tractors. This partnership seeks to improve the overall experience of the consumers by lowering interest rates and streamlining the loan application processes for farmers and the general public.
   

The agricultural equipment finance market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue ($Bn) from 2021 to 2034, for the following segments:

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Market, By Equipment

• Tractor
• Harvester
• Livestock equipment
• Irrigation systems
• Planting and seeding equipment
• Fertilizing and spraying equipment
• Precision Agriculture Technology
• Others

Market, By Financing

• Loan
• Leasing
• Hire purchase
• Others

Market, By Borrower

• Individual farmers
• Large agricultural corporations
• Cooperatives and farming groups

Market, By Finance Provider

• Commercial banks
• Government agencies
• Equipment manufacturers
• Specialized farm lenders
• Others

Market, By Financing Term

• Short term (up to 3 years)
• Medium term (3-5 years)
• Long term (more than 5 years)

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Southeast Asia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • South Africa
  • Saudi Arabia