AGCO, the parent company behind Massey Ferguson, Fendt and Valtra, has reported net sales of $2.6bn for the second quarter ended 30 June 2025, which represents a decrease of 18.8% compared to the second quarter of 2024. Net sales for the first six months of 2025 were approximately $4.7bn, which is a decrease of 24.1% compared to the same period in 2024.

“The global trade landscape has become increasingly complex, with uncertainty surrounding trade negotiations impacting farmer confidence and investment decisions, particularly in North America and Europe. AGCO is closely monitoring these developments and remains focused on operational agility, supply chain resilience and executing our Farmer-First strategy,” said Eric Hansotia, chairman, president and CEO.

“Challenging farm economics in the first half of 2025 have dampened demand for agricultural equipment across Europe and the US, with declining commodity prices and rising input costs specifically impacting US farmer sentiment.

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“Instead, there is growing interest in precision agriculture tools that offer efficiency gains without significant capital investment. In Brazil, erratic weather and lower prices have made farmers more cautious, with many choosing to maintain existing equipment rather than invest in new high-horsepower machinery. In Europe, environmental regulations and weather-related disruptions are driving demand for sustainable and adaptive technologies. While traditional equipment sales remain under pressure, we are seeing a clear shift toward smarter, more efficient solutions as farmers work to protect margins and navigate ongoing volatility.”

AGCO noted that the North American tractor sales declined by 13% in the first half of 2025 compared to the same period in 2024, with the steepest drops occurring in higher horsepower categories. Combine unit sales fell 33% year-over-year during the same period. It said ongoing uncertainty around grain export demand and elevated input costs are expected to continue weighing on industry demand throughout 2025, especially for larger equipment.

AGCO noted that western Europe tractor sales declined by 12% during the first six months of 2025 compared to the same period in 2024 with double digit percentage decreases across most markets except Spain and Italy, which both saw modest growth.

It says that demand is expected to remain soft throughout the year, as lower income levels weigh on arable farmers. However, steady demand from dairy and livestock producers is expected to partially offset the overall decline.