Every year, the Farm Progress Show (FPS) serves as a reflection point for the ag economy, bringing farmers from across the globe together to search for their next tractor or planter, share lessons learned from this year’s growing season, or grab a snow cone or John Deere shirt under the hot Midwest sun.
For original equipment manufacturers (OEMs), the event serves as a launching pad for innovation and an opportunity to size up the competition.
Ag machinery innovation comes in a variety of forms — from adding or subtracting horsepower to developing precision ag capabilities that enable more precise application of fertilizers, herbicides, and pesticides.
AI was central to numerous show announcements, including the release of John Deere’s chatbot JD, which can help farmers sift through their data and find insights to improve their operations.
Speaking to AgNavigator, AGCO’s CEO, Eric Hansotia, said the company is bullish on AI, stating the company was putting the technology everywhere. Powered by AI, AGCO’s PTx retrofit precision ag product is central to its technology story and a key pillar of its broader growth strategy.
Has the ag machinery market overestimated AI demand?
While many OEMs are jumping into the AI race, some are taking a more cautious approach to incorporating the technology into their solutions.
Construction and tractor maker JCB is not ignoring the AI hype. Instead, it is deploying the technology in its warehouses to help build better ag equipment. The OEM is more focused on building out its core proposition of being the number one in ag material handling, as AgNavigator reported.
Consider the non-digital Canadian ag machinery company Ursa Ag, which is gaining notoriety for being the antithesis to high-tech tractors. When AgNavigator spoke to Ursa Ag’s founder in June, the company was sold out through October and is likely sold out for the year at this point.
Going against the grain can be good business.
Then, factor in the AI backlash. People are increasingly souring on AI, with 39% of 3,270 U.S. adults saying the technology does more harm than good, compared to 31% who said the same thing in 2025, according to Gallup research.
Signs are popping up in rural communities across the U.S. calling out data centers and raising concerns on AI’s environmental and societal impact. So, what are farmers to think when the very thing they are protesting at home shows up in the cab of their tractor?
The say-do gap — the difference between what consumers say they do or feel and what they actually do — could explain farmers not wanting data centers in their communities but okay with the technology in and on their equipment.
At FPS, farmers were eager to learn about technologies to solve a host of farming issues and improve their margins. So, the AI backlash might not hit ag machinery in the same way it does the broader economy, but it’s a trend to watch.
Ethanol, electric engine innovation is ready to roar
Beyond tech, fuel volatility will drive innovation under the tractor’s hood. Amid ongoing tensions in Iran, diesel prices reached a record high of $5.85 ahead of the Labor Day holiday, according to AAA data.
Electric ag machinery represents a combination of scientific and engineering advances, cutting costs and reducing farmer headaches caused by faulty sensors.
Announced ahead of FPS, GoSun’s Moonrider 27 is priced competitively with comparable 27-horsepower compact tractors and is marketed as offering lifetime operating-cost savings. Designed for smaller farming operations, GoSun’s Moonrider 27 has its limitations with about 5 hours of battery life, but the marketing and positioning seem right for the moment.
Ethanol engines are likely to gain increased interest amid an industry push for year-round ethanol blending at a 15% rate (i.e., E15), with temporary E15 in place due to EPA waivers. Currently, John Deere, Case IH, AGCO, and others are developing ethanol engines.
Farmers want greater control over their operations, whether it’s using crop inputs more effectively or offering a hedge against future input volatility. OEMs tapping into this demand — whether through technological or engineering feats — will gain loyal customers and market share.
