This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 9/30/2019


Canada has been the largest export market for U.S. agricultural equipment with exports in 2017 totaling US$2.6 billion. Exports of U.S. agricultural equipment to Canada in 2017 experienced an increase of approximately 24% over 2016 numbers. In total, the value of agricultural equipment owned and leased by farms in Canada equaled more than C$41 billion in 2016 (approx. C$215,000 per farm). Machinery-intensive industries in Canada including agriculture, among others, account for 30% of Canada’s GDP and combined, these industries spent more than C$30 billion on machinery and equipment in 2016.

Canadian farm trends include the acquisition of more expensive agricultural equipment, which runs parallel to the trend of the falling number, but increasing size and value, of the average farm in Canada. In recent history, expense-to-receipt ratio has stayed relatively stable. Demand for more efficient, larger and more powerful equipment is in line with the growth in size of Canadian farms and has potential for more growth due to replacement demand. Canadian farm cash receipts are predicted to continue very moderate growth. Through uncertainty in relation to commodity prices, Canadian farm receipts have recently trended upwards.

There are noticeable effects related to the exchange rate (strong U.S. dollar) and other factors, such as interest rates for purchasing new equipment, weather patterns, changing global demand and global economic and geopolitical realities.

Currently, tractor and combine sales in Canada are projected to continue steadily throughout 2018 and 2019, equaling approximately that of previous five-year averages for most equipment, including 2WD tractors which have seen relatively stable sales.

Canadians trust and enjoy U.S.-made equipment and in recent times are increasingly appreciative of the quick delivery times of replacing equipment when purchasing U.S. goods.

Industry experts predict moderate recovery and growth in the sector in Canada throughout the next several years, due to increasing prices and demand for livestock and other sectors.

In 2017, retail sales of tractors and combines in Canada peaked in October and May. Data shows some growth within the last years in 2-4WD tractors and combines.  Sales of tractors in Canada experienced less relative volatility in the last year in tractor sales than the United States during the same period.

The Canadian Agricultural Machinery and Equipment Production data suggests an estimated increase in all following areas for 2019: total local production, total exports, total imports, imports from the U.S. and total market size.

Table: Canada Agricultural Machinery and Equipment Production Data (US$ Millions) 

2019 (Estimated)
Total Local Production 2,190 3,500 3,600
3,600 4,352
Total Exports 1,450 1,368 1,531 1,608 1,672
Total Imports 3,585 3,300 3,854 4,047 4,234
Imports from the U.S. 2,364 2,073 2,574 2,703 2,853
Total Market Size 4,325 5,432 5,923 6,039 6,772
(total market size = (total local production + imports) - exports)

Sub-Sector Best Prospect

  • Agricultural implements e.g., utility and turf, disc harrows, field cultivators, machinery for producing grains, oilseeds, or other commodity row crops
  • Equipment for use in livestock operations
  • Precision agricultural technology specifically used to maximize the productivity of agricultural inputs and farming methods
  • 2WD Tractors
  • Equipment parts


  • Despite the ups and downs of global commodity markets, Canada’s large farms and high-technology agricultural practices are well suited for U.S. products.
  • Canadian farmers are likely to make new investments and purchase replacements as global prices stabilize.
  • Canada’s agriculture is highly mechanized and capital-intensive, so precision agricultural technology is in high demand. 
  • Canada’s “Innovation Superclusters Initiative” includes a Protein Industries Supercluster that is expected to create more than 4,500 jobs and carry a GDP impact of more than $4.5 billion, resulting in many indirect benefits and opportunities for equipment and manufacturers.
  • Replaced by the Canadian Agricultural Partnership in 2018, “Growing Forward 2” was a US$3 billion investment by federal, provincial, and territorial governments geared toward capacity-building in agriculture and agri-food. The Canadian Agricultural Partnership is a five-year, $3 billion commitment by federal and provincial governments to strengthen the sector.
  • The number of agricultural equipment manufacturing jobs are primarily in Ontario, British Columbia, Alberta, Québec, and Saskatchewan. The Prairie Provinces and New Brunswick are strong for related manufacturing.

Barriers to U.S. agricultural equipment exports to Canada are negligible. Canada eliminated tariffs on all industrial and most agricultural products imported from the United States in 1988. In 2010, Canada announced the unilateral elimination of import tariffs on manufacturing inputs. Most tariffs were eliminated immediately, and the remainder were eliminated by 2015.

For more information on NAFTA certificates of origin, as well as a “What’s My Tariff” tool, please see’s “North American Free Trade Agreement (NAFTA)” webpage. Exports to Canada must be properly documented for customs purposes; customs regulations and information are available from the Canada Border Services Agency's website. The United States and Canada maintain different regulations regarding product labeling. The requirement that Canadian label information be provided in English and French creates extra costs for U.S. exporters.

Most major export markets for U.S. agricultural equipment are on either the intellectual property “Watch List” or “Priority Watch List” of countries contained in the Office of the United States Trade Representative’s 2019 Special 301 Report.  A country’s presence on either list indicates that problems—not all of which relate to agricultural equipment — exist in that country with respect to IPR protection, enforcement, or market access for persons relying on IPR.  Canada is on the “Watch List.”  

Upcoming Events and Trade Shows 

Agri-Trade Equipment Expo
Red Deer, Alberta
November 6-8, 2019

Canada’s Farm Progress Show
June 19-21, 2019
Regina, Saskatchewan

Web Resources 

For additional information on this sector, please contact Commercial Specialist Connie Haider at , tel: (403) 265-2116.

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting

More Information

Canada Agribusiness Trade Development and Promotion