A towbar controlled steering system is disclosed. A towbar pivots about a pivot point on a wagon front axle, with steering rods connected to steered wheels. At the towbar, the steering rods are attached to a carriage that moves ends of the steering rods in front of (towing position) or behind (backing position) the towbar pivot point. When backing, the wheels are steered in opposite directions as sideways towbar displacement. An automated system senses towbar angle and attenuates steering sensitivity while backing to keep the wagon along a backwards track defined by the tow vehicle.