Will Farmers Get More Subsidies in Phase 3 of the Tractor Scheme?
The 2026 Tractor Subsidy Scheme Phase 3 is one of the most discussed agricultural topics in Pakistan. Will there be more subsidies in the Tractor Scheme 2026 Phase 3? That is the question farmers from Punjab and all other provinces pose.
The government is projected to augment further financial facilitation to farmers after providing a subsidy for tractors in phases. This will enable them to modernize agriculture with reduced costs leading to better crop production. This article discusses the expected increases in subsidy, government plans, and eligibility criteria. It also explains benefits, official updates, and any other related information.
Read more : Green Tractor Scheme 2026 Phase 3 – Who will be Eligible?
What is the Tractor Subsidy Scheme?
The Tractor Subsidy Scheme is a government-backed agricultural support program that enables small and medium farmers to purchase tractors at subsidized rates either through direct subsidy or balloting-based aid. Under this scheme, eligible farmers receive financial assistance from the government. This reduces market prices for tractors hence making mechanized farming more attainable.
Tractor Scheme: Key objectives
- Encourage mechanized agriculture
- Reduce dependence on manual labor
- Increase the yield per acre
- Support for small landholder farmers
- Food security is important
Background of Phase 1 and Phase 2 Tractor Schemes
It is important to know the earlier phases before discussing Phase 3.
Phase 1 Tractor Scheme
- Number of Tractors Limited
- Subventions fixed
- Low supply and high demand
- Most small tractors (50 to 65 HP)
Phase 2 Tractor Scheme
- Transparency is improved
- Number of Tractors Increased
- Include medium HP tractors
- Register online for better service
The government has recognized that the expansion of the Phase 3 subsidy program in 2026 is necessary due to the overwhelming response from farmers.
Read More: Punjab Green Tractor Scheme Phase 3, 2026: When will it start?
Will Farmers Get More Subsidy in Phase 3 Tractor Scheme 2026?
Answer Expected: Subsidies are likely to increase
Based on the government’s policy, budget discussions and agricultural sector priorities, phase 3 tractor scheme 2026 will offer a higher subsidy than previous phases.
Despite the fact that final notification has not been received, there are several indicators that indicate an rise in the subsidy amount and coverage.
Expected Subsidy Amount in Phase 3 Tractor Scheme 2026
Although official figures are expected to be released by the government in the near future, experts and policy makers suggest that the following improvements can be expected:
- Subsidy per tractor increased
- Small and medium farmers receive separate slabs of subsidy
- Farmers with low incomes can receive additional incentives
- Coverage for several tractor brands has been expanded
Expected Subsidy Rate
- Small tractor: Higher subsidies than Phase 2
- Medium Tractors: New Subsidy
- Tenant farmers are entitled to a special quota
Read More: What is the best tractor model for your land in 2025?
Why Government May Increase Subsidy in Phase 3?
1. Rising Costs of Agriculture
Costs for farmers are increasing.
- Diesel
- Seeds
- Fertilizers
- Labor
A significant reduction in operational costs can be achieved by increasing tractor subsidies.
2. Climate Change Challenges
Farming with machinery is beneficial to farmers
- Prepare your land faster
- Water efficiency is important.
- Reduce crop losses
3. Food Security Goals
The Government aims to:
- Increase the output of wheat, rice and cotton
- Improve export potential
- Stabilize food prices
Eligibility Criteria for Phase 3 Tractor Scheme 2026
The following eligibility criteria are expected to be included in the final criteria.
Expected Eligibility conditions
- Pakistani national with valid CNIC
- Register as a farmer
- Ownership of land within certain limits
- Previous tractor subsidy benefits (or limited benefits)
- Verification of agricultural land records
You may want to give special consideration:
- Small farmers
- Young farmers
- Women Farmers
Registration Process for Tractor Scheme Phase 3
Registration Process will remain Digital and Transparent similar to previous phases.
What to Expect During Registration
- Online application via official portal
- Verification of CNICs and Land Records
- Selecting through balloting
- Notification of subsidy approval
- Tractor delivery via authorized dealers
This process ensures fair distribution, and eliminates any favoritism.
Tractor Brands Likely to Be Included in Phase 3
The government partners with local tractor manufacturers and international tractor makers .
Expected Participating Brands
- Millat Tractors
- Al-Ghazi Tractors
- Other locally assembled brands
The following criteria may be used to select tractors for farmers:
- Horsepower
- Crop Needs
- Type of soil
Benefits of Increased Tractor Subsidy for Farmers
A higher subsidy in phase 3 will have multiple benefits.
Key Benefits
- Reduction in upfront tractor costs
- Improved efficiency in farming
- Land preparation that saves time
- Better fuel efficiency
- Higher crop yield
- Farmer income increases
This scheme is a opportunity that can change the life of a small farmer.
Role of Provincial Governments in Phase 3
The provinces, and especially Punjab, will be expected to play an important role during implementation.
Provincial Support Includes
- Land records verification
- Agriculture department facilitation
- Extension services
- Farmer awareness campaigns
Phase 3 will be successful if the federal and provincial governments work together.
Challenges That May Affect Subsidy Increase
Some challenges remain despite positive signals:
- Budget allocation
- Limited supply vs. high demand
- Inflation pressure
- Administrative delays
The likelihood of government growth increases with strong farmer demand.
Latest Government Signals About Tractor Scheme 2026
Government statements and the agriculture budget priorities show that although no official notification has yet been released,
- Support for continued mechanization
- Small farmers are the focus
- Funding for agriculture development increased
These signals increase expectations for a larger subsidy in phase 3.
What Farmers Should Do Now
Prepare for Phase 3
- Update your land records
- Valid CNIC is required
- Keep up with official announcements from the Department of Agriculture
- Avoid unofficial or fake sources
Preparation early improves your chances of selection
Conclusion
The Phase 3 tractor scheme 2026 will be farmer-friendly with a high probability of higher subsidy in comparison to previous phases. The government is expanding financial assistance due to rising agricultural costs, food safety goals and farmer demand.
The final details of the scheme will be officially announced, but current trends suggest that -farmers will receive more subsidies in Phase 3. This will make tractors more affordable, and support sustainable agricultural growth in Pakistan.
FAQ’s
Subsidies for Phase 3 tractor scheme 2026 will be higher?
According to policy trends, it is expected that subsidies will increase.
Phase 3 Tractor Scheme – Has it been officially announced?
No, but the government has indicated that it will be launched in 2026.
Who is eligible for the Phase 3 subsidy program?
Small and medium farmers who meet land and CNIC criteria.
Registration will be done online
Registration is expected to take place online and be transparent.
Can farmers choose tractor brand?
Yes, if you buy from manufacturers who are approved.
