High quality and sustainable agricultural production in the open field will be supported by centimetre-precision guidance of agricultural implements. In this paper, a complete guidance system is proposed and simulated using real sensor data obtained from a real time kinematic (RTK) differential global positioning system (DGPS). This type of the satellite navigation system became available commercially in 1997 and is claimed to reach cm accuracy. It uses real time kinematics to improve the accuracy of a position fix by phase comparison of the carrier signal. The simulation primarily aims to investigate the accuracy of the guidance system that can be obtained with RTK DGPS. Using real DGPS measurement errors the simulated system showed a tracking error less than 0.005 m when the PID-controller had settled.