An automatic guidance system based upon two position-measurement systems was designed to record where the tractor traveled and to guide the tractor along the predetermined path. An algorithm, using the kinematic behavior of tractor movement, was developed to determine the steering angle to reduce lateral position error. The algorithm was based upon constant travel speed, constant steering rate, and zero slip angles of the tractor wheels. The algorithm was evaluated through use of computer simulation and verified in field experiments. Results showed that the distance interval between position measurements was an important factor in guidance system performance. The position-measurement error of the guidance system must be less than 5 cm to be acceptably precise for field operations. An algorithm based upon a variable steering rate might improve the stability of the guidance system. More accurate measurement of tractor position and yaw angle, and faster error processing are required to improve the field performance of the guidance system.