3 Farm Equipment Stocks If US Canada Trade Relief Lifts Machinery Demand

Trade headlines around a possible U.S.-Canada deal are no longer background noise for North American farm equipment stocks. They shape expectations for tariffs, farm incomes, and cross-border supply chains that feed directly into machinery demand. If policy risk eases, investors who ignored this corner of the market could feel late to the story. This article walks through three stocks exposed to the news and explains why the coming policy path matters for each.

The stocks below provide an initial look at North American farm equipment and ag machinery plays. The full screen surfaced 20 more companies with equally detailed business stories that are not covered here. To go straight to the source and identify which of these machinery-linked opportunities actually fits your thesis, analyze the North American Farm Equipment & Ag Machinery Stocks screener.

CNH Industrial (CNH)

CNH Industrial sits near the center of this farm equipment screen because its tractors, harvesters and sprayers tie directly into North American capital spending. Its push into precision ag tools makes the tariff story more than just a short term swing factor.

"The rollout of Starlink-enabled, always-on connectivity and the integration of digital platforms like FieldOps will dramatically accelerate adoption of precision ag solutions, unlocking higher-margin recurring software and data revenues that materially lift both gross margins and long-term earnings visibility."

What happens when that emerging profit stream meets one unresolved pressure on how much farmers are willing to spend each season?

That spending question sits at the center of the full narrative for CNH Industrial, where tariff risk, connectivity rollouts and farmer budgets collide to show how CNH Industrial’s earnings profile could be quietly shifting.

Finning International (TSX:FTT)

Finning International plugs into this farm equipment screen as a heavy machinery dealer and service provider whose fleets work across construction, resources and land-based operations, tying part of its fortunes to broader North American capital spending on big iron.

Finning International generates about CA$11.2b from selling, servicing and renting heavy equipment and engines, with agriculture sitting alongside construction, mining and energy customers. The group is diversified across Canada, the UK and Ireland, and South America, and carries a market value of roughly CA$12.1b.

"Significant increase in new equipment backlog to $3 billion (up 38% year-over-year) and a record surge in Power Systems backlog (now $1 billion, +88% y/y), both driven by strong demand in mining, infrastructure, oil & gas, and especially data centers, reflecting future tailwinds from global infrastructure spending and digitalization."

What happens to that growing backlog and the earnings it points to if one unseen pressure on financing costs does not break Finning International’s way?

If that pressure on financing costs is what keeps you cautious, read the full narrative for Finning International to see how Finning International’s backlog story could still accelerate.

Toromont Industries (TSX:TIH)

Toromont Industries gives this farm equipment screen a different angle, since its heavy machinery and power systems distribution in Canada and the U.S. ties capital spending on infrastructure, construction and equipment fleets back into the same broad cycle that shapes North American ag machinery demand.

Toromont Industries runs a large Equipment Group business that generated about CA$5.0b in revenue, alongside the smaller CA$526 million CIMCO refrigeration arm, and the group carries a market value near CA$16.5b.

Toromont Industries looks interesting here because its role as a Caterpillar equipment distributor links farm adjacent machinery demand to big-ticket projects, while its power systems and refrigeration work add extra ways to benefit when North American capital spending improves.

"The rapid ramp-up of AVL's production capacity, ongoing integration, and accelerated facility expansion in the U.S. positions Toromont to capitalize on booming North American data center infrastructure investment, laying the foundation for sizable future revenue and margin growth as AVL transitions from near-term non-cash acquisition charges to accretive earnings."

What happens to that earnings path if one shift in how customers balance buying versus renting equipment changes the mix of higher-margin support work?

That shift in ownership versus rental is exactly where the full narrative for Toromont Industries maps how Toromont Industries could turn AVL’s data center build out into an accelerating, higher quality earnings mix.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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