Agricultural Equipment Finance Market

Market Definition

The market encompasses financial services and solutions that enable farmers, agribusinesses, and agricultural contractors to acquire or access farming equipment through structured funding mechanisms. 

It includes various financing types such as leases, loans, and lines of credit. These services are tailored to facilitate the acquisition and use of key agricultural machinery, including tractors, harvesters, haying equipment, and other farm implements. 

The report provides a comprehensive analysis of key drivers, emerging trends, and the competitive landscape expected to influence the market over the forecast period.

Agricultural Equipment Finance Market Overview

The global agricultural equipment finance market size was valued at USD 68.42 billion in 2024 and is projected to grow from USD 72.65 billion in 2025 to USD 112.60 billion by 2032, exhibiting a CAGR of 6.38% during the forecast period. 

Market growth is driven by the increasing global demand for modern farming machinery. Rising agricultural mechanization prompts farmers to invest in advanced equipment to boost productivity and efficiency. This helps reduce labor costs and improve crop yields, making mechanization a critical factor for sustainable agriculture.

Major companies operating in the agricultural equipment finance industry are IDFC FIRST Bank Ltd., Rabo AgriFinance, ICICI Bank, KUBOTA Corporation., Argo Tractors S.p.A., American AgCredit, Deere & Company, BNP Paribas Group, Wells Fargo & Company, AGCO Finance, Citigroup Inc., De Lage Landen International B.V., Barclays PLC, CNH Industrial N.V., and Mahindra Finance.

key players in the market are focusing on expanding digital lending platforms and forming partnerships with equipment manufacturers and local dealers to reach wider customer bases. Flexible financing models such as leasing and seasonal repayment plans are gaining traction, meeting the diverse needs of agricultural producers.

• In April 2025, IFC partnered with Agricover Credit IFN, extending a USD 42 million debt financing package to strengthen support for Romania’s agricultural MSMEs. As part of the agreement, at least 50 percent of the funds will be allocated to women-owned businesses, aiming to reduce the financing gap and improve inclusion in rural areas.

Key Highlights:

1. The agricultural equipment finance market size was valued at USD 68.42 billion in 2024.
2. The market is projected to grow at a CAGR of 6.38% from 2025 to 2032.
3. Asia Pacific held a share of 35.03% in 2024, valued at USD 23.97 billion.
4. The lease segment garnered USD 27.69 billion in revenue in 2024.
5. The tractors segment is expected to reach USD 37.07 billion by 2032.
6. North America is anticipated to grow at a CAGR of 6.87% over the forecast period.

Market Driver

Strong Government Support and Subsidy Programs

The growth of the market is fueled by strong government support and subsidy programs. Many countries classify equipment loans under priority sector lending, this prompts financial institutions to allocate dedicated funds to the agriculture sector.

Subsidies on interest rates, capital costs, and machinery purchases make financing more accessible. These policies reduce upfront investment barriers and promote the adoption of modern equipment. In response, demand for structured financial products has increased across diverse farming operations.

• In September 2024, the U.S. Department of Agriculture (USDA) introduced the Distressed Borrowers Assistance Network, an initiative designed to provide tailored financial support tofarmers . Developed through cooperative agreements with farm advocacy groups and universities, the program connects borrowers with trained service providers who offer one-on-one guidance and resources.

Market Challenge

Limited Credit Access Restricting Agricultural Equipment Finance Growth

A major challenge hindering the progress of the agricultural equipment finance market is the limited credit access for small and marginal farmers. Many farmers lack a formal credit history or collateral, which makes it difficult for financial institutions to assess risk and approve loans. This restricts the adoption of mechanized equipment and slows market expansion in rural areas.

To address this challenge, companies are adopting alternative credit assessment methods using digital data and farm income verification. Additionally, partnerships with government programs and cooperatives help provide credit guarantees and subsidies. These efforts improve financing availability and enable more farmers to access necessary equipment.

Market Trend

Adoption of Digital Lending Platforms

The market is witnessing a notable trend toward the adoption of digital lending platforms. These platforms simplify the loan application process and enable faster approvals. They reduce the need for physical paperwork and allow remote onboarding of customers.

This is crucial for farmers in rural areas with limited access to traditional banks. Digital tools also help lenders use data analytics to assess credit risk more accurately. This is improving accessibility to financing, improving overall customer experience.

• In April 2024, Landus launched Conduit, a farmer-owned technology platform aimed at redefining the agricultural cooperative model. Conduit introduces accessible digital financing and is set to expand into tools supporting agri-commerce, insurance, and sustainable farming practices.

Agricultural Equipment Finance Market Report Snapshot

Segmentation	Details
By Type	Lease, Loan, Line of Credit
By Product	Tractors, Harvesters, Haying Equipment, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Type (Lease, Loan, and Line of Credit): The lease segment earned USD 27.69 billion in 2024, due to the increasing preference for flexible financing, lower upfront costs, and ease of equipment upgrades.
• By Product (Tractors, Harvesters, Haying Equipment, and Others): The tractors segment held a share of 33.24% in 2024, attributed to high demand for mechanized farming and the essential role of tractors in a wide range of agricultural operations.

Agricultural Equipment Finance Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The Asia-Pacific agricultural equipment finance market share stood at 35.03% in 2024, valued at USD 23.97 billion. This dominance is reinforced by rising farm mechanization across countries such as India, China, and Indonesia. 

Government subsidies, expanding rural credit facilities, and the presence of a large base of small and medium-scale farmers have contributed to the high demand for financed equipment. Moreover, growing investments in agriculture, coupled with favorable initiatives to improve productivity and reduce manual labor, have further supported the adoption of financing solutions in the region.

The North America agricultural equipment finance industry is poised to grow at a CAGR of 6.87% over the forecast period. The growth is stimulated by well-established financial infrastructure, high adoption of advanced machinery, and strong participation from public and private lenders. 

Increasing demand for precision farming and sustainable agriculture practices has fueled the need for modern equipment, leading to a steady rise in financing. Moreover, tax benefits and flexible leasing models propels regional market expansion.

• In March 2025, the U.S. Department of Agriculture (USDA) announced the issuance of up to USD 10 billion in direct economic assistance to agricultural producers through the Emergency Commodity Assistance Program (ECAP) for the 2024 crop year. The program, administered by the Farm Service Agency (FSA), aims to help farmers address rising input costs and declining commodity prices.

Regulatory Frameworks

• In the U.S., agricultural equipment finance is regulated under the Uniform Commercial Code (UCC), which governs secured transactions involving movable property, including farm equipment. Financial institutions must file a UCC-1 financing statement to establish a lien on the financed equipment. The Farm Credit Administration (FCA) oversees the Farm Credit System, which provides loans, leases, and credit services to farmers through federally regulated cooperative institutions.
• In India, agricultural equipment finance is governed by guidelines from the Reserve Bank of India (RBI), which classifies loans for farm machinery under priority sector lending. Commercial banks, cooperative banks, and regional rural banks are required to allocate a portion of their lending to agriculture, including equipment financing.

Competitive Landscape

Key players in the agricultural equipment finance market are expanding their customer base through strategic partnerships with equipment dealers and local distributors, to maintain a competitive edge. They are integrating digital platforms to streamline loan processing, improve credit assessment, and enhance customer experience. 

Some lenders are developing region-specific financing models to address the needs of small and medium-scale farmers, particularly in developing economies. Furthermore, they are focusing on flexible lease structures, seasonal repayment plans, and usage-based finance options to align with crop cycles and income patterns.

• In May 2024, Axis Bank partnered with VST Tillers Tractors Ltd to provide financial solutions for farmers purchasing tractors and farm mechanization equipment. The partnership leverages Axis Bank’s wide branch network to offer farmers easy access to affordable credit, featuring flexible repayment plans and special EMI benefits, to support the adoption of advanced farming technologies.

List of Key Companies in Agricultural Equipment Finance Market:

• IDFC FIRST Bank Ltd.
• Rabo AgriFinance
• ICICI Bank
• KUBOTA Corporation.
• Argo Tractors S.p.A.
• American AgCredit
• Deere & Company
• BNP Paribas Group
• Wells Fargo & Company
• AGCO Finance
• Citigroup Inc.
• De Lage Landen International B.V.
• Barclays PLC
• CNH Industrial N.V.
• Mahindra Finance

Recent Developments (Partnerships)

• In November 2023, Mahindra Finance and the State Bank of India formed a strategic co-lending partnership. This alliance leverages Mahindra Finance’s extensive rural network and SBI’s low-cost capital to deliver affordable and personalized financing solutions. The partnership aims to enhance financial inclusion by expanding credit access to underserved customers, with a major focus on supporting the MSME sector.