“North American sales decreased by $33 million year over year, and operating margins remain below breakeven,” said Damon Audia, Agco’s senior vice-president and chief financial officer.

Agco experienced a nine per cent drop in sales in North America over 2025, one per cent less than the 10 per cent overall market decline. The company attributes that drop to farm income declines in the United States and tariff costs, which it expects will continue into 2026.

The company’s softer sales came largely from lower demand for sprayers and mid-range tractors.

“Farmers are delaying new equipment purchases due to elevated input costs and tighter profit margins,” said Audia.

“The U.S. government’s $12 billion farmer bridge assistance program has helped shore up farmers’ balance sheets but has not translated into new equipment purchases at this time.”

Less decline

While Agco’s financial statements pool all of North America into one market segment, sales reports from the Association of Equipment Manufacturers shows Canada had significantly less decline in tractor and combine sales than the U.S.

This means much of the North American market decline appears to be attributable primarily to reduced U.S. sales.

Other, stronger global market regions, however, helped push the company’s overall operating profit to an average 7.7 per cent for 2025.

“Our adjusted operating margins are among the best in Agco’s history and the strongest for this point in the (farm machinery sales) cycle,” said chief executive officer Eric Hansotia.

“We nearly doubled our adjusted operating margins from prior (demand) troughs.”

Because low North American demand, particularly in the U.S., is expected to continue through 2026, the company is planning to continue its reduced manufacturing output, hoping to lower machinery inventory here to a six-month supply.

“You’re going to see North America down in a loss margin in the high single, low double-digits for 2026,” said Audia.

“Europe should stay right around that 15 per cent (profit) margin for the full year.”

A big factor in that loss is tariff costs imposed by the U.S. government.

“The absolute tariff costs for 2026 will be around $105, $110 million,” he added. “That’s what’s compressing our year-over-year margins.”

Gains of other sorts

Despite that negative financial news from this side of the Atlantic, the company actually saw a gain in market share in North America, and executives expect another two to three per cent marketshare gain in 2026 as the company’s newest machines debut.

“Agco turned in the highest market share in our history in 2025” globally, Hansotia said.

“It was the largest one-year gain for market share in North America.”

One North American segment that is likely to run counter to the declining sales trend is smaller tractors.

“The North American small tractor market offers a more positive counter balance as livestock and hay economics look comparatively resilient,” Audia said.

“And the older (farmer-owned) fleet points to emerging opportunities in 2026. We expect smaller tractors to be up modestly.”

Overall, though, the company expects large ag equipment sales numbers in North America to fall further, by as much as 15 per cent.

On the other side of the Pacific, Australia has seen gains for the company.

Europe, however, is likely to remain the brightest spot for Agco, with a possible five per cent sales increase expected due to solid farm incomes there causing positive sentiment among producers.

“Farmer sentiment (in Europe) is relatively positive,” said Hansotia.

“At Agritechnica, the feedback we were getting was more positive than we expected.”

While the company doesn’t expect the global machinery market to significantly improve this year, it should boost profit margins due to production cost reductions and overall total global sales stability outside of the U.S.

“We expect global industry demand to be relatively flat compared to 2025,” said Hansotia.

The post Soft North American farm machinery market hits Agco profits appeared first on Grainews.

U.S. government economic aggression and unpredictability resulted in significant trade disputes that severely affected overall global trade and corporate profits across the ag equipment sector.

The imposition of countervailing tariffs on U.S. soybean sales caused a major income loss for U.S. farmers.

Chinese tariffs on Canadian canola in response to our country’s agreement to follow the United States and apply tariffs on electric vehicles pressured some farm incomes here.

Agricultural Manufacturers of Canada, which represents Canadian ag equipment manufacturers, estimates the sector saw a 30 per cent sales decline over 2025 as a result.

The Association of Equipment Manufacturers, which tracks tractor and combine sales, shows sales were down in both the U.S. and Canada.

In two-wheel drive tractors above 100 horsepower, the U.S saw an overall decline of 22.6 per cent for the year. Four-wheel drive tractor sales declined 41.6 per cent and combine sales fell 35.6 per cent.

The picture in Canada was a little brighter, but there were still declines in tractor sales — 100-plus horsepower tractor purchases fell 12.1 per cent and four-wheel drives 23 per cent. However, combines grew about three per cent.

All of this happened as the ag equipment industry was already near the bottom of a demand cycle with slow sales going into 2025.

With Chinese tariffs on canola returning to more normal levels, Canadian farm income is likely to improve in 2026, assuming weather events aren’t a factor.

In the U.S., the government has promised a second bailout to mitigate reduced incomes from trade disruptions caused by the Trump administration. As a result, there is some optimism for improving sales conditions in 2026.

However, as the U.S. administration remains aggressive in its posture toward imposing sanctions and tariffs on an apparent whim, as well as threatening military actions toward former allies, it’s anyone’s guess how the gross domestic product of western nations will be affected, as well as farm incomes.

It is clear, however, that ag machinery brands will continue to face reduced margins in 2026. John Deere, for example, estimated in mid-year 2025 that tariff costs to its manufacturing that fiscal year would amount to about US$600 million. It expects the problem to continue into 2026.

All brands in the machinery and automotive sectors are facing similar cost increases.

A statement from AEM said tariffs on steel and aluminum alone would impact manufacturing costs for brands by about seven per cent. That almost certainly means farmers will face higher sticker prices on future machinery purchases.

Highlights by brand

Case IH

In August 2025, another, bigger Steiger, the Steiger 785 Quadtrac, debuted, with 853 peak engine horsepower, making it the most powerful model Case IH has yet offered.

The only other tractor introductions from the brand in 2025 were updates to the Farmall utility class, including models below 150 h.p. such as the Farmall 120C.

MTZ

MTZ’s Kirovets K-744 continues to be available as a low-cost, alternative to more familiar high-horsepower tractors, despite the Russian invasion of Ukraine.

Parts and tractor availability remains good, according to the Canadian distributor, even though MTZ tractors are built in Belarus and the Kirovets in Russia.

The brand also expects to soon begin production of three larger M8 models offering up to 620 h.p. There are no specification updates to the K-744 for 2025.

JCB

With 284 and 335 peak horsepower FPT diesel engines mated to ZF 3.1 four-range, step-less transmissions, two new 6000 Series JCB models (Fastrac 6300 and 6260) fit in between the brand’s exiting 4000 and 8000 Series lines, bringing the total number of JCB Fastracs to seven.

Claas

Claas’s Axion 900 Series tractor line was first introduced to Canada in 2019, joining the two-model Xerion line of unique four-wheel drive tractors the brand had been offering.

In 2022, the Axion 960TT Terra Trac half-track tractor joined the Canadian lineup. The latest offering from the brand is the 12 Series, Xerion 12.650, which were first introduced in 2023. The basic tractor specifications for high-horsepower models carry forward for 2026.

New Holland

New Holland showcased new models in 2023. Most notably, it pushed the horsepower limits of the T9 Series, boosting the flagship model T9.700 to 645 rated engine h.p.

The T9 SmarTrax versions were announced in early 2024 for the 2025 model year. T8 Series tractors got a five to 15 h.p. boost for 2025. The model specifications carry over to 2026.

John Deere

John Deere made headlines in 2024 with the introduction of the largest production tractors on the market, the articulated 9RX 710, 9RX 770 and 9RX 830, pushing rated engine h.p. to 830 in the flagship model. Last year was the first full production year for them.

Versatile

Versatile continues to offer the same high-horsepower model lineup for 2026 with some specification upgrades for the current model year, including the DeltaTrack 620DT and 620 4WD.

Fendt

Agco’s Fendt brand continues to grow market share across North America and represents the company’s premium equipment line. It offers both wheeled and two-track high-horsepower models.

PTx Trimble’s Outrun autonomous grain cart system is now compatible with the 1000 VARIO Series wheeled tractors such as the 1052 VARIO and 1167 VARIO MT.

Massey Ferguson

Over the past five years Agco has been updating the Massey Ferguson tractor line with the S Series models.

At Agritechnica 2023, it introduced the 9S Series, which pushed at the top end of the horsepower range previously offered in the Massey Ferguson brand.

In late 2024 the 9S Series debuted (including the 9S.425) in North America and replaced the 8700S models. They began arriving on dealers’ lots in 2025.

McCormick

The McCormick brand, now owned by Argo of Italy, has one model available in Canada that tops the 300 h.p. mark, the X8.680. This MFWD model sports some high-end options and is fully compatible with Isobus-controlled implements.

The company hasn’t announced any changes to the basic specifications for this model as we move into 2026.

Deutz-Fahr

Germany-based Deutz-Fahr continues to offer its 300 h.p. 9340TTV Agrotron tractor in Canada.

The low-revving Deutz diesel engine and a ZF-built CVT transmission remain the main driveline components for it for 2026. Basic specifications also carry over for current models.

In detail

Case IH

In early 2020, Case IH introduced the updated AFS Connect Steiger tractor line, which was given a refresh in 2023.

The 715 Quadtrac was added in 2023. It was the brand’s flagship model until 2025 when its larger brother, the 785, debuted. Both tractors are built on the same chassis, but the 785 was given some upgrades to handle the additional ponies under the hood.

Both get power from an FPT 16-litre two-stage turbo diesel, but on the 785, some internal components have been enhanced, such as fuel injectors, pistons, rings and some of the oil flow that feeds the cylinder walls.

The FPT diesel uses SCR emissions technology, requiring the use of DEF.

Channeling all that power to the track modules is the Steiger PS6 16F-2R power shift transmission, which is standard equipment across the Steiger high-horsepower line.

The 785 uses the same PS6 power shift transmission as all 595 models and larger do. However, there were some enhancements specifically for the 785, such as shot-peened gears for additional strength. All PS6 transmissions will get those upgrades starting in 2026.

The longer 264-inch track modules available in 30- or 36-inch widths on the 785 are the same as those that debuted on the 715.

A bigger drive sprocket spreads the turning force out over an extra tooth to extend the life of the track.

The larger drive sprocket also allows for a boost in maximum road speed from 25 m.p.h. (40 km-h) to 26.5 m.p.h. (42.5 km-h).

The 785’s hydraulic system is an upgrade from the Smart Torque version with which the Steigers have been equipped.

In February 2024, Case IH introduced the new Quadtrac Heavy-Duty Suspension (HDS) for Steigers.

The current AFS Connect Magnums were first introduced in 2019.

In February 2024, Case IH also unveiled its 2025 model year Magnum tractor line. And in keeping with the industry trend of horsepower creep up, those tractors also saw a horsepower boost.

The 380 and the 400 both were given five additional h.p., creating the 385 and 405. Everything else in the large frame, starting at 250 and larger, got 15 additional h.p.

The tractors get power from what the brand calls the Cursor 9-litre diesel, which, technically speaking, actually has an 8.7-litre displacement.

The 355 was given a new transmission, a 21F x 5R power shift, which was included in its base equipment list.

The new transmission offering will make the 355 compatible with future autonomous operating systems by simplifying what’s required to make that workable when Case IH eventually offers it.

Another significant change for the 2025 Magnums came in how the brand offers technology packages for them. Buyers can pick and chose their preferred individual features from two complete package options.

At the rear, the Magnums adopted the hydraulic coupler design used on their larger brothers in the Steiger line.

In 2021, the AFS Connect Optum line first debuted.

Two of the two AFS Connect Optum models are at or above the 300-horsepower mark, the model 300 and the 340, which was new for the 2024 model year. They use an FPT 6.7-litre diesel, which features a 50 km-h capable CVXDrive CVT transmission. It offers a little lower hydraulic flow rate, with a standard 43.5 g.p.m. (166 l/m), which can be upgraded to 58.9 g.p.m. (223 l/m).

The Optums pack more horsepower into a smaller package with a lighter footprint than an equivalent Magnum.

The 300 Optum weighs in on average with a standard front axle at 24,603 pounds (11,160 kilograms), compared to 28,800 lb. (13,082 kg) on the 310 Magnum.

MTZ

Arie Prilik, vice-president of MTZ Equipment, the North American distributor of MTZ and Kirovets tractors, said the tractors and replacement parts, which originate in Belarus and Russia, still enjoy good availability.

The brand’s current flagship model, the 435 h.p. Kirovets K-744 four-wheel drive tractor, gets its power from an OM 470 Mercedes diesel and routes it through the Power Quad 16 X 8 transmission.

The tractors use a Bosch hydraulic system capable of 74 g.p.m. (280 l/m) and provides four rear remotes. They also have a Category IV rear three-point hitch with a 9,000 kg lift capacity.

A dedicated hydraulic pump provides a 21 g.p.m. (79 l/m) flow to the tractor steering system, and they are auto-steer ready.

Unique to the North American tractor market is the old-school front leaf-spring axle suspension used by the K-744. The tractors also have a suspended cab for improved operator comfort.

The K-744s use an air brake system, getting pressure from a Bendix pump. It can also be used as external compressed air source. The tractors even include a 20-foot auxiliary air hose.

The brand will soon begin production of three new, larger articulated four-wheel drive M8 models offering 500, 550 and 620 h.p. Its introduction date isn’t yet established, but it’s expected to debut in 2025.

The brand emphasizes the tractors’ lower cost and simple design with the marketing tag line, “Simple, dependable, profitable.”

JCB

In late 2025, JCB introduced the two-model 6000 Series to its Fastrac line.

They offer 284 and 335 peak h.p. PFT diesel engines mated to ZF 3.1 four-range, step-less transmissions and fit in between the 4000 and 8000 lines, bringing the total number of Fastracs to seven.

Their 6.7-litre, six-cylinder FPT diesels deliver peak power at 1,850 r.p.m. The 6.7’s torque curve rises as the revs are drawn down, where it peaks at 940 foot-pounds at 1,400 r.p.m. on the 6260 and 1,023 foot-pounds on the 6300.

The two 6000 Series tractors have a top speed of 66 km-h, which also fits in between the 60 km-h and 70 km-h top speeds of the other two ranges.

The 6000 Series tractors use air brakes with externally mounted discs, which makes changing worn pads much simpler than on the inboard brakes used on many other tractors. The brakes use electronic ABS to avoid uncontrolled skidding on hard surface roads.

The tractors can be equipped with dual NovAtel GPS receivers that enable the high precision guidance to steer both axles.

All of that rides on a newly designed chassis, using a cast front section that houses the engine and front axle, as well as a fabricated steel structure for the rear half that carries the cab, transmission and rear axle.

The largest Fastrac, the 8330, offers 348 h.p. in a tractor that can hit 70 km-h (43 m.p.h.) on the road.

For safety, they use a dual-line hydrostatic steering system, and the Rapid Steer option reduces the number of steering wheel turns from lock to lock by 50 per cent to make field operations easier.

To bring the tractor safely to a stop, it uses external brakes on both axles and has an ABS system to help maintain steering control during hard braking.

The 8330 uses an 8.4-litre Agco Power diesel engine matched with an dual-range CVT transmission.

The 8330 auxiliary hydraulic flow rates hit 178 l/m (47 g.p.m.), with up to five rear and two forward remotes. Rear three-point hitch lift capacity is 10,000 kg, and the optional front linkage capacity is 3,500 kg.

The new 6000 Series tractors beat those hydraulic numbers with a standard 205 l/mn (54 g.p.m.) flow rate, or an optional 410 l/mn rate available in the larger 6300 model.

Claas

The Axion 900 iine includes three models above 300 h.p.: the 940, 950 and 960. There is also a variation on the 960, the 960 TT Terra Trac half-track tractor. Together, those models offer 334, 357 and 391 advertised power take-off h.p.

Under the hoods of all 900 Series models is an 8.7-litre, six-cylinder FPT diesel engine. Mated to that engine is a CMATIC four-range continuously variable transmission.

The brand has also been offering the unique rigid-frame four-wheel drive Xerions, which were originally only available in just two models: the 517 h.p. 5000 or 476 h.p. 4500. Both use a 12.8-litre Mercedes OM 471 LA diesel.

Behind the Mercedes diesel is a ZF-made CVT transmission, making them capable of travelling at 50 km-h, even in reverse.

In 2023, the Xerion line was expanded to include two new 12 Series models: the 12.650 and 12.590, which offer 650 and 590 h.p., respectively. They’re available in both wheeled and tracked versions.

Behind the 15.6-litre Mercedes diesels that produce peak torque at just 1,300 r.p.m. is a “purpose-built,” in-house design CMATIC Eccom 5.5 CVT transmission that offers the precise settings and easy speed adjustments typical of a CVT, and it can move the tractors down the road at 40 km-h on the Terra Trac versions and 50 km-h on the wheeled models.

The Terra Trac models use a unique track module, which was designed by Claas and Camso for the high-horsepower demands of the 12 Series.

The wheeled versions come with 42-inch, 800-70R42 duals, which Claas claims is the largest tire currently available in the industry for production high-horsepower ag tractors.

The newest Xerions can deliver a high hydraulic flow, which maxes out at a whopping 142 g.p.m. (537 l/m) with the optional three-pump system.

Four priority remotes can be used to keep essential systems such as air drill fans running at optimum speed. The base, single-pump hydraulic system delivers 58 g.p.m. (220 l/m).

The new Axion model 9.450, with several changes and a new model number designation format, debuted at Agritechnica last year year, but it is not yet available in North America. It won a Tractor of the Year award at that show. It is an entirely new design, according to the company.

New Holland

At the top of New Holland’s tractor line is the T9 with PLM Intelligence Series. The latest model of those four-wheel drive T9s introduced in August of 2023 pushed at the upper horsepower limits of the line.

The T9 SmarTrax versions were announced in early 2024 for the 2025 model year. The T9 Series now covers the 425 to 645 rated engine h.p. range.

Of the six models for 2024, the T9.470, T9.520 and T9.580’s 12.9 litre engines have been changed to an electronic variable geometry turbo (eVGT) to boost horsepower, improving fuel economy by two per cent. The three other models, which are wide-frame models (the T9.615, T9.655 and T9.700) also use the 12.9 diesel but sport two-stage turbocharging — fixed geometry, first stage and wastegate second stage.

Gross vehicle weight (GVW) has been increased across all six of the new T9 models: 56,000 lb. (25,401 kg) for the smallest three and up to 67,000 lb. (30,391 kg) for the T9.700.

Buyers get a choice of two transmissions for all but the top two models, which are only available with the Ultra Command 16 X 2 powershift. The others can be ordered with the optional Auto Command CVT as well.

Total T9 hydraulic flow rates can be boosted up to 113 g.p.m. (427 l/m). A large coupler is available for very high flow demands, and tractors can be equipped with up to eight remotes.

The remote valve controls on the Sidewinder Ultra armrest are customizable and can be arranged to control whichever remotes the operator prefers.

The Genesis T8 with PLM Intelligence series wheeled models (T8.320, T8.350, T8.380, T8.410, and T8.435) get five to 15 h.p. ratings boosts, with five models from 325 to 435. There are also the 410 and 435 horsepower T8.410 SmartTrax and T8.435 SmartTrax models.

Depending on the model, T8s offer a choice of an 18 X4, 19 X 4 or 21 X 5 Ultra Command full powershift transmission or the brand’s CVT. T8s have the 8.7-litre FPT Cursor 9 engine under their hoods.

Of course, just like the T9s, the T8s with PLM Intelligence offer the highest level of digital connectivity the brand has ever offered. PLM Intelligence allows for remote tractor diagnostics, remote viewing, data collection and sharing, among a host of other functions.

Two tractors in the T7 Series now break the 300 rated engine h.p. mark, the T7.315 and T7.340 Heavy Duty with PLM Intelligence models. Both use the 6.7-litre FPT engine mated to the brand’s 50 km-h-capable Auto Command CVT transmission.

John Deere

John Deere currently offers three tractor ranges with models rated above 300 engine h.p., three in the 7 Series offering 310 to 350 h.p. and 12 in the 8 Series, all of which use the brand’s 9-litre diesel.

The big news for Deere in 2024 was the introduction of the three very-high horsepower 9RX models that offer 710, 770 and 830 h.p., making them the largest production models currently available.

The articulated 9 Series tractors up to 640 h.p. get Deere’s 13.6-litre JD14X diesel under the hoods.

This engine produces 13.5 per cent more power than the 13.5-litre engine it replaced, takes up less real estate, runs significantly quieter and drinks seven per cent less fuel. That engine gets mated to the brand’s e18 (18F x 6R) 40 km-h-capable power shift transmission.

The three big new tractors get an all-new John Deere 18-litre engine mated to the e21 powerShift transmission.

Deere’s 8 Series tractors get the company’s nine-litre diesel for power. They use the brand’s Intelligent Power Management system to boost output by up to 35 h.p. during p.t.o. or transport work.

The 2023 model year introduced 410 h.p. 8R, 8RT and 8RX models with a step-less electric variable transmission (EVT). Deere says that design enables precise speed control and enhanced drivability. They’re also available with the e23 power shift.

The EVT uses electric motors instead of hydrostatic motors to improve transmission performance.

To the operator, it will feel much like an Infinitely Variable Transmission (IVT), only much quieter. Deere says it will provide better overall tractor control, along with easy serviceability and diagnostics

Other transmission options in the 8 Series include the brand’s 40- or 50-km-h capable IVT, as well as the e23 and 16-speed power shifts. The optional CommandPRO control is available on 8 Series tractors equipped with the EVT or IVT transmissions.

The three largest 7 Series models, the 7R 310, 330 and 350 also break the 300 h.p. mark. They use Deere’s 9.0-litre diesel as well, and the 330 and 350 are available with the choice of an e23 (23F x 11R) or IVT transmission.

Buyers of the 7R 350 will have to take the IVT because it’s the only option on that model.

In early 2025, Deere announced the next generation perception system, an autonomy precision upgrade kit for select tractor models that can bring autonomy to tillage work. This system is available as a precision upgrade for model year 2022 and newer 9R and 9RX tractors and model year 2020.5 and newer 8R and 8RX tractors.

Versatile

Winnipeg-based Versatile continues to offer six wheeled and three tracked DeltaTrack versions of its articulated four-wheel drive tractors: the 530DT, 580DT, and the 620DT.

The wheeled models (the 530, 580 and 620) span the 400 to 616 h.p. range, with the three smallest tractors getting power from an X12 Cummins, while the three largest tractors in the series, which includes the three DeltaTrack models, get an X15 Cummins.

Behind those Cummins diesels is a Caterpillar 16 X 4 powershift transmission. The X12 mates to the TA19 Caterpillar, and the X15 routes power through a larger TA22. All use the brand’s trademark outboard planetary final drives for ease of maintenance and durability.

Versatile four-wheel drives are equipped with a standard 59 g.p.m. (223 l/m) pump or an optional 112 g.p.m. (424 l/m) high flow hydraulic system. Six rear half-inch hydraulic remotes are standard with two additional, optional three-quarter inch types available. Flow rates can be varied through the in-cab monitor.

Two cab comfort packages are available, the Deluxe and Deluxe Pro, which includes upgrading the monitor from the standard 10-inch to a 12-inch. Three different lighting packages allow for upgrades from a 14 halogen package to 19 LED and two halogen with a total output of 47,500 lumens.

Farther down the horsepower line, three of the brand’s MFWD tractors top 300 h.p.: the 315, 335 and 365.

As Versatile’s long-standing exclusive engine supplier, there are Cummins engines under the hoods of these tractors, too — this time, a QSL9 mated to a 16 X 9 powershift for all five tractors in the series. All have a total hydraulic flow of 55 g.p.m. (208 l/m), or 72 g.p.m. (272 l/m) with the optional hi-flow hydraulic system.

Fendt

The current Fendt 900 Vario MT line of tracked tractors includes three models with 380 to 431 h.p.: the 938 Vario MT, 940 Vario MT and 943 Vario MT . They use a 9.8-litre, seven-cylinder diesel and offer up to 116 g.p.m. (439 L/mn) hydraulic flow.

The wheeled 900 Vario line includes five models topping out at 415 rated h.p. They get that power from a six-cylinder 9.0-litre diesel.

The 900 Vario models have an integrated tire pressure control system that is controlled through the touch screen. The intelligent VarioDrive system provides seamless speed control from creep all the way up to 33 m.p.h.

As well, there is no need to manually switch to all-wheel drive when it’s required. The system handles that automatically.

There are now four 1000 Vario Series models from 426 to 550 h.p.: the 1040 Vario, 1044 Vario, 1048 Vario and 1052 Vario. These tractors can now be unlocked from the factory to use with the PTx Trimble Outrun autonomous grain cart system.

The 1000 Series has a standard 58 g.p.m. (220 L/mn) hydraulic flow rate, but that can be upgraded to an optional 113.5 g.p.m. (430 L/mn).

A self-cleaning air filter system uses on-board compressed air to periodically blow out the filter, extending filter life by up to 15 times compared to standard intakes.

The wheeled 900 and 1000 Series tractors get power from six-cylinder MAN engines (a nine-litre in the 900 Series and a 12.4 in the 1000s).

Equipped with the Fendt iD low engine speed concept that works with the tractor management system (TMS) and Fendt’s signature VarioDrive continuously variable transmission, the tractors have a maximum engine operating speed of just 1,700 r.p.m. That, according to Fendt, means less fuel consumption and reduced wear on engine components.

The high-horsepower, two-track tractor designs originally introduced under the Challenger brand were made available to Canadian farmers wearing Fendt colours in 2020.

There are now four models, including the 1151, 1156, 1162, and 1167 in the 511- to 673-h.p. range in the 1100 Vario MT Series, powered by a 15.2 litre engine. As well, there are three others in the smaller 380 to 431 h.p. 900 Vario MT Series, which use the seven-cylinder 9.8 litre diesel engine.

In 2024, Agco introduced the ErgoSteer retrofittable joystick control option for 500 to 1000 Series tractors.

Easily installed in late model machines it allows the operator to steer the tractor with a joystick mounted on a left-hand armrest, rather than use the steering wheel. It’s available as a kit from Agco parts.

The system was recognized for an AE50 award from the American Society of Agricultural and Biological Engineers (ASABE) for 2025.

Massey Ferguson

Agco has given its Massey Ferguson brand the “straightforward and dependable” marketing tagline, positioning Massey as the go-to option for those not looking for the same high level of technology its sister brand Fendt offers.

However, that isn’t to say Masseys are all bare bones and low tech.

Along with those models that can be ordered with more basic features, there is a lot of technology that can be packed into many of the brand’s traditional red and grey tractors as well. They offer buyers a wide range of technology levels.

In late August 2024, Agco debuted the new 9S models (photo up top) at the Farm Progress Show in the U.S., and they began arriving at North American dealers in 2025.

First introduced at Agritechnica in 2023, the 9S line will include six models in the 285 to 425 h.p. range (9S.285, 9S.310, 9S.340, 9S.370, 9S.400, 9S.425) pushing up at the top of the horsepower range offered by Massey.

The 9S models use a closed-centre hydraulic system with an optional flow rate of up to 400 L/mn.

An 8.4 litre engine, which delivers maximum power at 1,850 r.p.m., has its power routed through the brand’s Dyna-VT, 40 or 50 km-h-capable CVT transmission.

The 9S tractors are relatively light and can weigh up to 3.1 tonnes less than competitors’ tractors in that horsepower category.

The Datatronic 5, nine-inch touchscreen is fully Isobus compatible and allows the operator to control tractor functions on the nine-inch screen.

It offers MF AutoTurn, which can store three separate steering modes for headland turns. Images from up to four cameras can be displayed on the screen to help monitor implements.

McCormick

Topping out McCormick’s flagship X8 model line is the 310 h.p. X8.680. It gets that muscle from a 6.7-litre six-cylinder BetaPower engine that breathes through a variable geometry turbocharger so it can deliver up to 945 pound-feet of torque.

Behind that engine is the brand’s 50 km-h-capable VT-Drive continuously variable transmission, which has four programmable “virtual” operating ranges.

Built for McCormick by ZF, the VT-Drive has three operating modes: automatic, manual and p.t.o. It can even be set to maintain speed and engine settings by automatically adapting to changing load conditions.

The closed-centre hydraulic pump provides 56 g.p.m. (212 l/m). An additional 30 g.p.m. ( 115 l/mn) pump supplies dedicated flow to the steering system.

Tractors can be equipped with up to six electronically controlled rear remotes, as well as two more at the front. The transmission and hydraulic fluids are kept in separate sumps to prevent cross contamination and help ensure driveline oil levels remain at the proper levels.

The rear three-point hitch has a lift capacity of 26,450 lb. (12,000 kg), and a front hitch is also available. It gets a lift rating of 11,000 lb. (5,000 kg). A front p.t.o. is also an option.

A suspended front axle is standard equipment on the X8s, and the tractors are compatible with the brand’s L88 front-end loader.

The McCormicks have fully compatible Isobus connectivity to make digital communications with implements seamless. Operator interface is through a 12-inch touchscreen colour monitor.

Deutz-Fahr

The 9 Series TTV Agrotron models in Deutz-Fahr’s lineup break the 300 h.p. mark. However, only the largest model, the 9340, gets imported into Canada. It has a rating of 336 maximum h.p.

Behind the 7.8-litre Deutz TTCD diesel engine is a ZF-built CVT transmission, which offers 40, 50 or 60 km-h capable versions, along with precise speed selection from 0.2 to 60 km-h at reduced engine speed.

The Deutz engine delivers 90 per cent of its available torque at just 1,000 r.p.m., and maximum torque remains relatively constant from 1,200 to 1,600 r.p.m.

Hydraulic flow rate is 160 l/m, but that can be increased to 210 l/m as an option. Flow rates and activation time of the flow to remotes can be adjusted from the operator’s seat independently for each circuit. Up to six rear and two front remotes are available.

Hydraulic oil uses a separate sump from the transmission fluid to avoid contamination.

The 9 Series tractors offer what the brand describes as “unique operating comfort.” The MaxiVision cab 2 gets a lighting package using LED work lights.

Inside the cab is a colour 12.8-inch iMonitor 2.0 and upholstered leather seating. And for a smoother ride, pneumatic cab suspension is standard on these tractors.

The 9 Series come equipped with a suspended front axle, too. It offers a tight 50 degree turn angle with power disc brakes for improved stopping capability.

Rear three-point hitch lift capacity comes in at 12,000 kg. Front hitch lift capacity is 5,000 kg.

The 9340 includes a built-in guidance package and is fully Isobus compatible, which means it’s TIM (Tractor Implement Management) ready. A fold-out cooling package and easy access to filters make maintenance chores a little easier.

The tractors’ appearance is the result of styling developed in collaboration with the design studio Italdesign Giugiaro.

As well, for those who want to look under that stylish hood, no heavy straining is necessary. A button in the cab lifts it with ease.

RELATED GUIDES:

• 2025 High-Horsepower Tractor Guide
• 2024 High-Horsepower Tractor Guide
• 2023 High-Horsepower Tractor Guide
• 2022 High-Horsepower Tractor Guide
• 2020 High-Horsepower Tractor Guide

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The disputes have lowered farm incomes in North America — reducing the ability of farmers to buy new equipment — while having also increased manufacturing costs, making equipment more expensive.

WHY IT MATTERS: Aggressive U.S. government economic actions in 2025 reduced corporate profits across the agricultural equipment sector.

The imposition of countervailing tariffs on U.S. soybean sales caused a major income loss for U.S. farmers. Chinese tariffs on Canadian canola depressed some farm incomes here. Agricultural Manufacturers of Canada, which represents Canadian ag equipment manufacturers, estimates the sector saw a 30 per cent sales decline over 2025 as a result.

The Association of Equipment Manufacturers (AEM), which tracks tractor and combine sales, shows sales were down in both the U.S. and Canada.

In two-wheel drive tractors above 100 horsepower, the U.S. saw a dramatic overall sales decline of 22.6 per cent for the year. Four-wheel drive tractor sales declined 41.6 per cent and combine sales fell 35.6 per cent.

The picture in Canada was a little brighter, but still showed softer tractor sales. Hundred-plus-horsepower tractor purchases fell 12.1 per cent; four-wheel drives, 23 per cent. But combine sales grew about three per cent.

All of this happened as the farm equipment industry was already near the bottom of a demand cycle, with sales already slow going into 2025.

With Chinese tariffs on canola slated to return to more normal levels, Canadian farm income is likely to improve in 2026 — assuming weather events aren’t a factor.

In the U.S., the government has promised a second bailout to mitigate reduced incomes from trade disruption caused by the Trump administration, so there is some optimism for improving sales conditions in 2026.

But as U.S. President Donald Trump’s administration maintains an aggressive posture toward imposing sanctions and tariffs on an apparent whim, as well as threatening military action toward historic allies, it’s anyone’s guess how the GDP of western nations will be affected. Farm incomes will be caught in that web.

Bottom lines

It is clear, however, that ag machinery brands will continue to face reduced margins in 2026. John Deere, for example, estimated mid-year in 2025 that tariff costs would add US$600 million to its costs for that fiscal year. It expects that problem to continue into 2026.

Much of Agco’s product line is built outside of North America and imported, making those machines subject to significantly higher tariff rates than machines built in the U.S.

Agco CEO Eric Hansotia said earlier in 2025 that the company would try to reduce the effect on imported equipment sticker prices by averaging tariff costs across its entire product line.

All brands in the machinery and automotive sectors are facing similar cost increases.

A statement by AEM said tariffs on steel and aluminum alone would impact U.S. manufacturing costs for brands by about seven per cent. That almost certainly means farmers will continue to face higher sticker prices on future machinery purchases.

Adding further uncertainty to equipment sales in 2026 is the upcoming renegotiation of the Canada-U.S.-Mexico Agreement (CUSMA).

During a visit to a Ford assembly plant in Michigan in January, Trump said of the CUSMA agreement, “There’s no real advantage to it. It’s irrelevant,” putting its future in jeopardy.

More recently he added: “If Canada makes a deal with China, it will immediately be hit with a 100 per cent Tariff against all Canadian goods and products coming into the USA.”

That would violate the existing CUSMA agreement.

Ignoring trade agreements, though, has become standard fare for the president. This past week, he said he would unilaterally change a trade agreement with South Korea, upping the tariff rate to 25 per cent, simply because the legislative process there hasn’t ratified the deal quickly enough to suit him.

All this means no agreement with the U.S. can be considered firm and binding as long as the current U.S. administration remains in power. It will only remain in force until the president decides it isn’t.

The U.S. is now arguably the least reliable trading partner on the globe. That means how ag equipment sales will shake out this year is far from certain. Under the current U.S. administration, manufacturers’ costs and market access going forward are completely unpredictable.

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“(There will be) a pre-tax tariff impact for 2025 of just over $500 million should these tariff levels remain over the fiscal year, based on the tariffs in place on May 13,” said Josh Rolater, Deere’s manager of investor communications.

Of course, with the U.S. president frequently altering or pausing tariffs on an apparent whim, it’s impossible to say with any certainty what U.S. tariff policy will be in place next week, let alone in six months.

On May 30, barely a couple of weeks after Rolater said that, tariffs on imports of steel and aluminum to the United States — a major input in ag equipment manufacturing — were doubled to 50 per cent, effective June 4.

The upping of those specific tariffs seems to add fuel to accusations by a large number of legal and political experts as well as media outlets that the president is using his office for unprecedented levels of personal gain. In late May, Emirates Global Aluminum announced a plan to establish a production facility in the U.S. Ownership of that firm is linked to a UAE state-owned holding company.

Just a few weeks ago, Trump visited the Gulf states and collected some pretty significant personal gifts there, most notably a $400 million Boeing 747 aircraft from Qatar.

In mid-May, the Guardian newspaper from Great Britain published a report associating Trump to an even larger wealth transfer from the UAE.

“Gulf states have offered other incentives, including a $2 billion investment from a UAE-controlled fund into a Trump-linked stablecoin that could incentivize the president to shape foreign policy in favour of Abu Dhabi,” it read.

Construction of the facility in Oklahoma isn’t slated to start until 2026, but if tariffs continue at 50 per cent, it could make the Emirates investment potentially much more lucrative. That will, however, add even more costs for U.S. manufacturers.

‘Global uncertainty’

Aside from tariffs, though, there are other headwinds for Deere and the ag equipment industry as a whole.

Deere expects its overall sales of large ag equipment in North America to fall by about 30 per cent through its fiscal 2025 accounting period. The small ag and turf division expects a little stronger market, with sales there declining 10-15 per cent.

“As we look to the second half of the year, global uncertainty continues to weigh on customer sentiment,” said Josh Jepson, Deere’s chief financial officer.

Despite all of that, at current production levels, the company’s North American order book is mostly full for the rest of the year, and its profit margins remain healthy.

“John Deere delivered a better-than-expected second quarter, with an 18.8 per cent margin for the equipment operations,” said Jepson. “Notably, margins exceeded projections despite tariff headwinds due to better than expected sales and favourable production costs stemming from efficiency gains, our material sourcing and factory operations.”

Deere’s overall financial picture remains pretty stable. The company’s net income for the year is expected to land in the US$4.5-5.5 billion range.

“I’d like to commend our teams for the excellent results they delivered this quarter despite the difficult macro environment we were facing,” CEO John May said.

Executives also said farmers are increasingly opting for the new technologies the brand is introducing, and the full-autonomy tillage system that has been in limited release will see full commercialization in 2026.

They also talked about plans to continue to invest in U.S. manufacturing. It’s something they’ve been emphasizing ever since the U.S. president publicly called Deere out last September over an announced move of skid steer production to Mexico, threatening 200 per cent tariffs on green machines.

“We are prepared to invest $20 billion in the U.S. over the next decade,” May said, “as we spearhead new product development, cutting-edge technologies and more advanced manufacturing.”

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That phrase nimbly captures prices for farm machinery in the summer of 2025. The turmoil is rooted in U.S. tariffs, of course, and that uncertainty cascades down to combines, harrows, tractors, trucks — you name it. Farmers, at the tail end of the process, are, well, very cautious.

Farmers are backing off buying new equipment, facing disrupted supply chains, unknown prices on old equipment on dealers’ back lots, cascading shutdowns of supply chains and slowing of production lines, according to a Nov. 20, 2024 news release from Farm Credit Canada.

“New equipment unit sales are projected to remain soft through 2025 as farmers feel the pressure of low commodity prices, high equipment prices and tighter profitability,” the federal lender predicted. It estimated combine sales will fall eight per cent in 2025 compared to 2024 sales. Moreover, farmers who hoped to beat the waves of tariffs variously threatened, debated and imposed have slashed pre-orders, put low crop prices in their crosshairs and started to wait out the price chaos to come.

—>READ MORE: Check out the latest on tariff threats HERE

As explained by a Saskatchewan dealer who prefers his name not be attached to his candour, “our yard is loaded up with pre-tariff product … We’ve priced sale for threatened duties, but if the tariffs don’t come through then we will have to sell at a loss. We’re locked into prices we can’t cut except at a loss and can’t raise for fear of order cancellation by our farmer customers.” This is a financial straitjacket for Canadian farmers and their suppliers.

U.S. tariffs have spooked equipment sales — as have restrictions on purchases of crops such as soybeans that are in China’s crosshairs, already facing a 2024 hurdle on exports. Compounding the tariff problem is the reality that a lot of heavy equipment has components that have crossed borders many times on the way to final assembly. In these cases, border-hopping means new tariffs can be piled onto preceding tariffs.

Individual farmers are not equipped to predict single-nation tariffs, much less tariff cascades on machinery components from several countries. As Myrna Huber, a manager of family business Huber Ag Equipment at Coronation, Alta., says, “we let our equipment brokers deal with prices of tools we sell into the United States.” That is post-sale pricing. On the special goods she sells — for example, castrating tools — pricing is well anticipated by customers. That does not go for big-ticket products.

Chris Hergott, general manager at Hergott Farm Equipment Ltd. at Humboldt Sask., says “tariffs have slowed down the market for new equipment.” Will slower and lower new equipment prices cascade down to lower prices for used machinery? With dealers reporting higher prices for used equipment, especially row-crop tractors, back lots are looking sparse.

And that’s how it is playing out. Higher new-equipment prices, with crop values skinned by tariffs, are driving farmers to buy more used gear. New-equipment prices are published by manufacturers, known and relatively fixed; used gear costs are much more negotiable.

The unknowns remain machinery costs, chemical prices, seed costs and farmers’ understandable instincts not to get financially stretched when their bottom lines look downright fragile. Unless there are Canadian government bailouts that ultimately pay for U.S. tariffs, farmers are going to remain in the U.S. price vise.

The problem is that markets can usually work out supply and demand, but can’t set selling prices based on whipsawing politics. Every buying survey reveals cautious farmers and equipment dealers cutting back on orders. Efficiency isn’t the goal now. Rather, it’s keeping balance sheets in the black and avoiding politically-driven mayhem. It may be unfair, inefficient and precarious for every farmer laying out cash for equipment — or, for that matter, chemicals or seed — but it is the reality of the U.S. tariff war.

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It seemed fitting to have the two largest pieces of equipment at the show a couple of booths down from each other. Capacity, horsepower and efficiency have been the focal points for producers and manufacturers with recent model releases.

John Deere brought its new 9RX 830 tractor, boasting 913 peak horsepower, while Rocky Mountain Equipment booth had New Holland’s new Next Generation CR11 combine front and centre with its tried-and-true twin-rotor design.

Even the small pieces of equipment are getting bigger. Flaman had a DJI Agras T50 sprayer drone looming overhead. With a 40-kg spray capacity and able to cover 21 hectares per hour, this drone has grown almost to the size of a small car. The ever-increasing size of equipment brings awe and amusement to the crowded hallways of the show.

A resounding theme throughout the week, though, was the rising cost of technology and aftermarket additions. The list of options on new equipment has seemed to grow exponentially in recent years. When ordering a new seed drill, decisions need to be made on whether to add sectional control, turn compensation, blockage monitors, aftermarket openers, mudscrapers and the list goes on.

All these options make it important to do research, as their functions and improvements need to be evaluated to fit the owner’s operation. They also all come with additional cost — another consideration. CPS brings many of these aftermarket providers into one space, to help the buyer with these in-depth conversations. 

An interesting disparity was the disconnect between global equipment sales reports and territory salespeople at the show. Reports show a declining trend in new equipment sales throughout North America — but in conversation with the associates working many of the booths, sales are stronger than ever. Multiple dealer locations had met their sales goals or had commitments to sell out of available equipment for the coming year.

It may be that the national reports are a broader evaluation of the larger industry, while the more local economy is trending upward — but the disconnect is still very prevalent.

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“This is a natural extension of our current presence in Elie, Neepawa, Brandon, Russell and the Swan River region in Manitoba,” AgWest’s CEO Ronald Slaats says in a release. “This expansion brings us closer to Prairie farmers, enabling us to provide the localized support and premium solutions they rely on to succeed.”

AgWest, which is based at Elie and operates six shops across Manitoba, is certainly geographically closer to the Yorkton and Weyburn shops, while Agriterra’s footprint is otherwise all in Alberta.

Agriterra’s current staff at the two Saskatchewan shops “will be retained to ensure a seamless transition and maintain uninterrupted service for customers,” AgWest says.

Apart from the Agco roster of brands such as Massey Ferguson and Fendt, AgWest also deals in Claas, MacDon, Schulte, RoGator and TerraGator.

AgWest got formed in a merger of two other Manitoba dealership chains that were taken over back in 2014 by Toromont, which in turn sold the AgWest business to Dutch equipment distributor Mechan International in 2023.

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According to a recent news release from Alberta Agriculture and Irrigation, higher combine prices do not yet appear to have affected their sales in Canada. Increased market demand has driven higher sales each year since 2020. However, it noted, recent data suggests that combine sales, while strong on a year-to-date basis, tell a different story when measured year-over-year.

Good crop prices and record-high farm income may have previously buffered the effect of growing combine prices on buyer behaviour, the province said. That gravy train has since hit the brakes.

“Surprisingly, recent data from the Association of Equipment Manufacturers show combine sales in Canada up 5.7 per cent year-to-date in July, while U.S. sales are down nearly 18 per cent year-to-date,” read the release.

“Sales in Canada for the month of July 2024, however, are nearly 28 per cent lower compared to July 2023. This may indicate tougher market conditions ahead.”

The release also noted the technology-rich nature of newer combines, which may be playing into consumer demand.

“The level of technology has increased dramatically and newer machines are equipped with GPS, computer sensors and a range of automatic features,” it noted.

Inflation, unsurprisingly, is also playing a major role. Although the price of a combine has increased in real terms, general inflation has also “contributed substantially” to increasing sticker prices, said the department.

The release also referenced the effect of the exchange rate between Canada and the U.S. As of Aug. 29, the Canadian dollar is worth 74 cents of a U.S. dollar, according to Google Finance.

“Many combines sold in Canada are manufactured in the U.S., and so the exchange rate has an effect on prices as well,” the release noted. “Combine prices seem to be more suppressed when the Canadian dollar is strong vis-a-vis the U.S. dollar, such as the period from 2010 to 2012, than when the Canadian dollar is weak.”

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Shares of the world’s largest farm equipment maker rose six per cent, lifting peer Caterpillar, which also reported a profit beat last week amid moderating demand, nearly three per cent.

Higher prices, implemented two years ago following supply chain complications and a surge in demand for industrial and agricultural equipment, have helped U.S. machinery makers to shield their profits from an industry-wide slump.

“Deere’s pricing power was reflected well in Q3 as price helped to dampen impacts from contracting volumes,” CFRA Research analyst Jonathan Sakraida said.

Deere maintained its 2024 net income at about US $7 billion, even as sales of new machines have shrunk amid a decline in crop prices and high borrowing costs, which have also forced dealers to limit inventory restocking.

U.S. farm incomes are forecast to plunge in 2024 due to a sharp decline in commodity prices, heightened production costs and shrinking government support.

“By keeping inventories in check, we have been able to maintain solid price realization,” said Deere’s director of investor relations, Josh Beal.

Deere also said it expects an improved favorable price realization in its agriculture segments in 2024 compared to its previous targets.

For the third-quarter, Deere reported a net income of $6.29 per share, compared with LSEG estimate of $5.63, while net sales and revenue decreased 17 per cent to $13.15 billion.

“We’ve prudently and proactively adjusted production schedules in our large agriculture business at a faster pace than ever before, in order to reduce field inventory in our end markets,” CEO John C. May said.

Deere said in June it would cut some production jobs and reduce salaried employees to keep a tight lid on costs.

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Despite new combine sales growing 5.5 per cent in 2023 in Canada compared to 2022, according to the Association of Equipment Manufacturers (AEM), the FCC report projects sales will tank by as much as 20 per cent in 2024.

Used combine, header and grain cart sales are expected to soften too, trending below the five-year average. On top of that, dealers’ combine inventory levels are forecast to climb above the five-year average.

All that dismal news for equipment salespeople is due to lower grain and oilseed prices, according to the FCC report — and others in the equipment industry agree.

“Lower expected farm income and a refreshed fleet (are) expected to pressure demand in 2024, resulting in weaker industry demand compared to 2023,” Agco CEO Eric Hansotia said during a quarterly earnings webcast at the end of March.

According to AEM, Canadian combine sales had already fallen 5.2 per cent year-to-date by the end of March. The picture is more dismal in the U.S., where combine sales have already declined over 20 per cent for the same period.

The slowing sales picture isn’t limited to North America. Brands are already seeing slower sales in most regions of the world. And it isn’t just combine sales that are slowing; sales in most tractor categories have fallen as well, particularly those under 100 horsepower.

“More challenging global market conditions are expected in 2024, due to reduced commodity prices and modestly lower farmer income expectations,” Hansotia says. “As a result Agco is forecasting lower sales in 2024.”

Just how much lower? John Deere spelled out its expectations in an earnings report webcast at the end of its first fiscal quarter of 2024 (which actually began in 2023).

“Ag fundamentals, while down from the record highs of the last few years, have returned to near mid-cycle levels,” Deere’s manager of investor communications Joshua Rohleder said. “We expect large ag sales in the U.S. and Canada to decline 10 to 15 per cent, trending closer to the lower end of that range.”

But it isn’t all bad news for the major brands. Improved profit margins are helping take the sting out of the slower sales projections.

RELATED: Geared-down expectations

“In 2023 net sales increased 16 per cent to over $55 billion and we delivered record net income of over $10 billion,” Deere’s CEO John May said during that same quarterly reporting webcast (all figures US$).

“Our 2024 guide implied a roughly 15 per cent reduction in net sales, putting us at very similar sales levels to 2022. However continuing that forecast, our net sales of $7.5 to $7.75 billion contemplates at least a $400 million improvement over 2022.”

Agco’s full-year sales figures for 2023 declined two per cent from the previous year. Despite that, higher profit margins softened the blow there as well.

“Agco finished 2023 with record sales of $14.4 billion, up nearly 14 per cent from last year due to strong pricing as well as outperforming the global market, which was actually down in 2023,” Hansotia said. “Record operating margins reached 11.8 per cent of net sales.”

READ MORE: The horsepower race is back on again

One bright spot for Canadian equipment dealers is sales of four-wheel drive tractors. While sales in that machine category declined over seven per cent in the U.S., more of those big tractors have been taking rides on lowboy trailers out to Canadian farmyards so far this year, with year-to-date sales here jumping over 10 per cent compared to 2023.

FCC projects the four-wheel drive tractor market will stay strong this year, with sales not expected to end the year with more than a two per cent decline. And that means sales will be relatively strong compared to the five-year average, because sales of four-wheel drives grew over 40 per cent in 2023.

“Farms are now looking to upgrade their aging four-wheel drive tractors,” the FCC report reads. “So even with inventory levels expected to improve by the end of the year, sale volumes are expected to trend above the five-year average.”

But the report cautions possible drought conditions in the West, and a declining Canadian dollar exchange rate, could throw a wrench into those projections.

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