Original equipment manufacturers (OEMs) are navigating a challenging market environment as farmers’ margins remain tight, leading to fewer equipment purchases. Despite market conditions, ag machinery maker AGCO remains confident that its multi-pillar growth strategy — built on multiple brands, technological innovation, and its FarmerCore dealer approach — is one that can win market share.
AGCO’s CEO, Chairman, and President, Eric Hansotia, outlined this strategy during a press conference and a subsequent interview with AgNavigator on the first day at the 2026 Farm Progress Show, which took place Sept. 1-3 in Boone, Iowa.
On the first day of the event, AGCO showcased its latest portfolio additions, including the reveal of the Fendt 1100 Vario MT Gen2 Track Tractor and Fendt Momentum 80-Foot Planter and the North American debut of Fendt 300 Vario Gen5. The next day, AGCO followed that up with revealing Massey Ferguson’s N-Series Split/Narrow Row Planter.
At the core of AGCO’s business strategy is a multi-brand approach, allowing the OEM to go after different market segments and farmer needs, Hansotia explained.
“Fendt is going after the most premium, high-demanding needs — the best of the best customer — and there’s a lot of those in North America, and they’ve not had enough choices, historically. So, we’re bringing them. We’re performing at the very top of the market for those who want the best, and then Massey Ferguson is a straightforward and dependable product. So that’s our playing field of the solutions we have. We’re working with our dealers heavily this year and raising the bar and expectations of what they deliver,” he elaborated.
AGCO invests in tech through the down-market cycle
Despite challenges to the ag machinery market, AGCO is investing more than $500 million dollars in product development and supporting its dealer relationships with FarmerCore, Hansotia noted. These investments include digital tools, allowing farmers to purchase parts and configure machines online, he added.
“Farmers are at the trough of the business cycle. They’re really struggling. So, our farmer-first message is really coming through. It’s influenced how we developed technology and how we developed our distribution strategy,” Hansotia said.
He added, “For technology, we’ve got our PTx business that serves any brand of equipment, mixed fleet, upgrading their existing machine through a separate tech channel. That’s all they sell is technology upgrades. They don’t sell tractors or planters or sprayers — that’s very different than any of our competition.”
AGCO is making its precision ag technology PTx central to its growth strategy, which generated $860 million last year and is expected to be flat or slightly up this year.
In August, the OEM doubled down on its precision ag commitment by appointing Damon Audia to the role of president of PTx, after serving as AGCO’s CFO for four years. Like many major OEMs, AGCO is investing in autonomy and remains bullish on what the tech can provide farmers.
“Our commitment is that we’re going to have the full cropping cycle, from tillage all the way through harvest, with autonomous solutions in it by 2030, and we’re right on track to be able to do that,” Hansotia emphasized.
Part of the autonomy story is an AI story, which is being rolled out across the broader organization, Hansotia said. Among its AI capabilities, AGCO offers AI-based weed control spraying with SymphonyVision and RowPilot, and the company holds an equity stake in AI weed detection provider Greeneye Technology.
“We’re putting AI into almost all of our products. We’re putting AI to almost every corner of our business. Really trying to figure out how do we automate tasks to get a better solution for farmers faster. And so, AI investments, digital investments, product investments, and channel investments [are] all happening at the bottom of the cycle because we know this market is going to turn around,” Hansotia said.
AGCO taps into LatAm opportunity, eyes Argentina growth
Beyond North America and tech investments, AGCO is pushing deeper into South America and tracking opportunities in the Argentine market, following the country’s changes to export taxes, Hansotia explained. The OEM is working with its dealer partners to capitalize on the opportunity of Argentine farmers entering the OEM market again, he added.
AGCO’s dealers “understand the financial situation, and we’re working alongside those farmers as they’re coming back into the market. They’ve been out of the market for a while because of largely governmental policies, but now those have been corrected. And so we’re working with Argentinian farmers to help them grow rapidly,” he elaborated.
