The Australian tractor market entered 2026 in a peculiar state. Total unit sales are sitting roughly 8 per cent behind the same period in 2025, yet the largest, most expensive machines are flying out the door at near record pace. Big farms are buying. Small hobby blocks are not. And the gap between those two stories is the most important thing operators need to understand before they price up a new machine this winter.
Here is where the market sits in Q1 2026, what is moving, and how to fund the right tractor without locking up working capital you will need for fertiliser, fuel and the next harvest.
Total tractor sales tracked by the Tractor and Machinery Association of Australia (TMA) are down around 8 per cent year to date through March. The monthly breakdown tells the deeper story:
That February figure is the one to circle. Unit volumes fell but dollar turnover rose nearly a fifth. Translation: the machines that did sell were significantly larger and more expensive. Big-rig dealers are quietly having a strong year while compact and utility tractor sellers are doing it tough.
At the other end of the range, the sub-40hp segment has collapsed. Year-to-date sales of these smaller machines are off 24.2 per cent, reflecting weak demand from hobby farms, lifestyle blocks and councils that bought heavily through the post-pandemic boom and are now sitting on near-new fleets.
Mainline tractor share in Australia is still being led by John Deere, which holds around 23.9 per cent of the segment based on the most recent quarterly data. The green and yellow brand commands close to a quarter of all mainline buyer activity, which is roughly where it has been for several years. You can see the full spread of available stock from John Deere, Massey Ferguson, Kubota, New Holland and Case IH on tractors for sale from verified dealers across NSW, Victoria, Queensland, WA, SA and the NT.
The story behind Deere is the climb of AGCO's Massey Ferguson, which has pushed into second place at 19.2 per cent. Massey has been an aggressive specifier in the mid-horsepower category and is taking ground from Kubota, which has slipped from 14.5 per cent to 13.4 per cent in the same window. Kubota's softness is the compact and utility segment biting: it has been a market leader at the smaller end for years, and that smaller end is exactly where demand has dropped hardest.
Behind them, CNH Industrial's two brands sit steady. New Holland holds 7.3 per cent and Case IH 4.4 per cent, with most of their volume in broadacre cropping country. AGCO's premium Fendt brand continues to specify upward into the high-horsepower segment that is driving the only growth in 2026. The Fendt 700 G series launched into Australia in 2024 has fed neatly into the 200hp-plus surge.
The other movement worth watching is what is coming, not what is currently selling. John Deere has flagged Australian launches of autonomous and battery-powered electric tractors during 2026, which would mark the first time fully autonomous machines are commercially available to Australian broadacre operators. Whether that genuinely shifts orders this calendar year is doubtful, but it changes the conversation about what farmers should be buying with a 5-year finance horizon.
State performance has been wildly uneven in Q1 2026, which matters because finance applications cluster by region.
The NT figure is the inspirational number for 2026. It shows that when conditions and confidence align in a region, demand returns quickly even in a soft national market. If you are in one of the stronger regions, current tractor stock available near you may be worth reviewing now before seasonal demand tightens supply.
The TMA data also tracks the implements and ancillary machinery that move with tractor purchases, and this is where the 2026 picture gets more optimistic. Balers are up roughly 22 per cent year to date through March, with March alone up 11 per cent. Out-front mowers were up 29 per cent in March year on year. Self-propelled sprayers have softened, and combine harvester activity has been minimal so far, which is typical for the first quarter.
The bullish baler and hay equipment numbers suggest mixed and livestock operators are investing in feed infrastructure rather than tractor replacements. This is the same pattern Equifund is seeing in the asset finance market: operators are spending on the implements that lift productivity now, while deferring big-ticket tractor decisions until commodity prices or seasonal conditions firm up. Browse current implement and ag equipment stock on implements and ag equipment for sale nationally to compare what is available.
Several forces are pulling the 2026 tractor market in different directions at once.
Input cost pressure. Fuel and fertiliser costs are climbing into the winter planting window. Roughly 20 to 30 per cent of global fertiliser supply originates in the Middle East, and disruption around the Strait of Hormuz has interrupted exports from Saudi Arabia, the UAE and Qatar. Cropping operators are facing higher per-hectare input costs than at any point in the last 3 years.
Softer commodity prices. Global grain prices have eased from their recent highs, so there is no revenue offset to higher inputs. ABARES forecasts the gross value of Australian agricultural production easing to around $95 billion in 2026-27, down from an expected $101 billion in 2025-26.
Climate variability. The TMA has pointed to severe drought in some southern regions while northern Australia continues to receive heavy seasonal rain. That divergence is exactly what the NT and NSW state figures reflect.
Tax timing. The $20,000 instant asset write-off has been extended for 2025-26 and applies to eligible assets first used or installed ready for use by 30 June 2026. From 1 July 2026, the threshold drops to $1,000. For sub-40hp tractors, ATVs, side-by-sides and smaller implements that fit under the threshold, the next 6 weeks are the last meaningful window. The TMA, John Deere and CNH Industrial all believe the market floor has been reached and gradual improvement should follow as conditions stabilise.
Equipment finance in agriculture works differently to vehicle finance. Lender appetite for farm assets is generally strong, but lenders look closely at the asset itself, the operator's seasonal cash flow pattern, and the way repayments are structured against income timing.
The main finance structures Australian farmers use:
The other thing to know in 2026 is that lender appetite varies sharply by horsepower segment and asset age. High-horsepower late-model tractors from premium brands are the easiest tier of farm asset to finance right now. Older or higher-hour machines need a broker who knows which lenders are still active in that part of the market.
If you are weighing a tractor purchase before 30 June, start by shortlisting the machines that fit your operation on available tractor stock that fits your operation, run the numbers on the instant asset write-off, then talk through repayment structuring before you sign the order. Getting all three right is worth more over the life of the asset than chasing the lowest headline rate.
Equifund works with 80+ lenders across Australia, including specialist agricultural and equipment lenders. We are a fully licensed broker (ACN 647 510 790, CRN 530270), meaning we work for you, not the bank. Get a decision in as little as 24 hours with no impact on your credit score. Apply now →
John Deere remains the market leader in mainline tractors with around 23.9 per cent share. Massey Ferguson sits in second at 19.2 per cent, followed by Kubota at 13.4 per cent. New Holland and Case IH hold steady at 7.3 per cent and 4.4 per cent respectively.
Why are 200hp tractor sales rising when overall sales are falling?Large broadacre cropping operations are continuing to invest in productivity, replacing older high-hour machines with newer high-horsepower units. Compact and sub-40hp sales have collapsed (down 24.2 per cent year to date) because the hobby and lifestyle segment over-purchased during the post-pandemic boom and is now sitting on near-new fleets.
Can I claim the instant asset write-off on a new tractor in 2026?The $20,000 instant asset write-off applies per asset for eligible small businesses with aggregated turnover under $10 million, for assets first used or installed ready for use between 1 July 2025 and 30 June 2026. Most full-size tractors exceed the threshold, but a range of compact tractors, ATVs, side-by-sides and implements fall under it. Speak to your accountant to confirm eligibility.
What finance options work best for buying a tractor in Australia?Chattel mortgage is the most common structure for farm tractors and allows owners to claim interest, depreciation and GST. Finance lease is useful for operators wanting to preserve cash. Seasonal repayment structuring matched to harvest or livestock income is widely available through specialist agricultural lenders.
Do I need property security to finance a tractor?No. Most equipment finance for tractors is secured by the asset itself, not by real property. ABN holders can typically access tractor finance without offering property as security, including through low doc options for those without full financials.
Disclaimer: This article is intended as general information only and does not constitute financial, tax, or legal advice. Figures and thresholds are current at time of publication and may change. Please consult a qualified financial adviser or accountant before making any financial decisions. Equifund Financial Group Pty Ltd | ACN 647 510 790 | CRN 530270 | Authorised under Australian Credit Licence Number 389328.