A far better proposition that hauling stuff with horse-drawn carts, or wait if and when the next supply of gasoline or diesel will arrive, so the trucks can start moving again. Note that price of fuel for steam machines ranged between 'low' and 'free'.
The big advantage of horses at the time was that, well, they existed. With the flick of a pen, the army suddenly had a million horses at it's disposal. A similarly large pool of trucks, be they steam or petroleum fueled, wasn't available to be requisitioned.
As for how the steam tractors can be used in agriculture - a choice between a) producing more food and b) being stingy with the borders of the plots is an easy one in an non-democratic society. And there is no onption a) in the occupied lands.
Even in an authoritarian regime, the regime can't do whatever. The regime has to be careful to not piss off it's power base too much. The Nazi regime also had some kind of ideological fascination with small-scale farming where the ideal "real" German was a family farmer. See Blut und Boden (blood and soil). Agricultural mechanization and the requirement for large-scale farm consolidation didn't mix very well with this idea.
Insisting on just the best stuff - gasoline and diesel power - was a bad move for Germany of the 1930s. They were no USA, not even USSR wrt. the fuel availability. Steam, started by mid 1930s, is a one way to alleviate the fuel problems.
Yes, kind of.
tl;dr: Would it have been possible to create a modern industrial economy without relying on imported petroleum with 1930'ies technology? Yes, to some extent it would have, I think. Was it realistically possible to do starting in the mid-1930'ies and be in some substantial way done by the time the historical WWII breaks out, while at the same time industry is running red hot with the rearmament? No.
So, for a kind of thought experiment. Germany doesn't have petroleum in significant quantities, but it does have coal. Mountains of it, particularly lignite. However, coal mining is labor intensive, and back breaking work. Not as labor intensive as cutting firewood, but still. Solution: Mechanization of mining. Bucket wheel excavators were starting to be used in the 1920'ies for surface mining, particularly lignite. And for underground mining of higher coal grades (needed for steel production), e.g. mechanized longwall mining (with shearers and conveyor belts) was already being used at some scale at the time.
Ok, so now we have near unlimited amounts of coal. What then? Lignite, in particular is troublesome, the high moisture and ash content can create combustion instability, and even if that is solved you need a large fire grating to generate the same power as possible with a much smaller fire if using better quality coal. Lignite is also kind of soft and crumbly so hard to handle. The solution is adoption of pulverized coal technology. The small particles have large surface area and burn much faster and you can make do with a smaller boiler. The pulverizing process also drives out a lot of the moisture, improving efficiency. Alternatively, instead of burning the pulverized coal immediately, it can be pressed into briquettes which can be used in places where equipment for handling pulverized coal directly is too cumbersome (the advantage over straight lignite is the lower moisture content, and that the briquettes aren't as crumbly as lignite so easier to handle). Finally, lignite can also be used in the production of town gas, providing a cheap and convenient source of heat for cooking and other heating like building heating and some industrial uses as well. The coal gasification also provides various byproducts that can be used as feedstocks by the chemical industry.
So what about various vehicles, then?
- Liquid fuels produced from coal (Bergius and Fischer-Tropsch) were high quality, but very expensive. Except for the industry involved in the production of these fuels, German industrialists were actually opposed to the entire program, as they saw that there was no viable path to making these fuels anywhere close to cost competitive with imported petroleum. So let's reserve these for when they are absolutely required, like aviation and military use.
- Steam trucks and tractors, yes they did exist, but there's probably reasons why they never became particularly successful. Steam is a fickle master, it works well when there's professionals handling it, but small scale usage by amateurs is low efficiency and a recipe for boiler explosions.
- Wood/Coal gas generators is maybe a more appropriate technology for vehicles like trucks and tractors? Yes, they are cumbersome compared to a petrol engine (but less so than steam?), but at least fuel is available and cheap. Even more so if you can make it work with the above mentioned lignite briquettes. Also there's no high pressures involved, so the gasification equipment can be built from cheap sheet metal. I understand the fuel efficiency is in the same ballpark as for small steam engines, maybe even slightly better. Another advantage of the gas generator path vs steam is that in peacetime, depending on the foreign exchange situation etc. vehicles can relatively easily be converted between petrol and gas generator power. And in wartime, vehicles can flexibly be moved between frontline duty using (synthetic) liquid fuels, and rear area duty using the gas generators.
- For situations where steam is appropriate, by all means use it. Electrical power plants using lignite and powdered coal is a proven technology used to this day. Also locomotives and ships. Thus build out the rail network, and canal and coastal shipping (instead of the autobahns, say). Germany did have some of their standard locomotives converted to use powdered coal which apparently worked decent enough that they remained in use after WWII. This could allow using the cheap and plentiful lignite for transportation purposes.
- In cities, build out electrical tramways, reducing the need for buses and private cars. Heck, why not have 'cargo trams' too, for moving around things like food and products from light industry in the cities.
- (Another advantage of building rail and water based transportation is the reduced requirement for rubber, another product that had to be either imported or produced synthetically at some expense.)