A long-awaited recovery in the farm sector appears to be in sight as AGCO Corp., one of the world’s biggest agriculture equipment makers, is predicting an increase in sales for the first time in three years.

The manufacturer of Massey Ferguson and Fendt tractors estimated 2026 net sales just above last year, according to a Thursday statement. While the sale of new machines is set to remain sluggish, growers need to update soon and are increasingly retrofitting existing equipment with artificial-intelligence packed components that help them more precisely plant, treat and harvest fields.

“The future looks brighter,” Chief Executive Officer Eric Hansotia said on a call with investors. Last year “was the bottom of the trough, and the fleets in our major markets are at the peak of their age.”

Shares rose as much as 5.6% to the highest level in two years, before paring gains.

The optimism also comes after data earlier this week showed plummeting sentiment among farmers as disrupted soybean exports limit cash flows. President Donald Trump raised hopes Wednesday when he said China was considering buying more than an initial 12 million tons of U.S. soybeans. However, even if China bought additional cargoes, targeted volumes would likely still be below recent years.

Meanwhile, a tranche of $12 billion in aid to U.S. farmers has yet to translate to sales for AGCO, Chief Financial Officer Damon Audia said on the call.

Sales bump

For 2026, net sales could rise to between $10.4 billion and $10.7 billion, AGCO said. That’s above a Bloomberg estimate of $10.07 billion and surpasses sales in the year ended Dec. 31 of $10.08 billion.

Fourth-quarter earnings also topped analyst estimates. “AGCO delivered a strong top- and bottom-line beat to finish 2025,” Oppenheimer analyst Kristen Owen said in a note.

The company kicked off the earnings cycle ahead of bigger rivals Deere & Co. and CNH Industrial NV, which are expected to report in the weeks ahead.

Hansotia said AGCO is expanding its market share with its high-end Fendt machines, and innovation through an increasing number of patents. The key North American market is likely to remain the world’s weakest this year, with Brazil in a comparatively stronger position while farmers in Europe could start shopping for new gear even sooner.

Separately on Thursday, the U.S. Department of Agriculture estimated net farm income will decline 0.7% this year, even as income from crops was seen rising by 1.2%.

“Farmers are still under a lot of pressure, so it’s still not a great market — but it’s better than last year,” Hansotia said in an interview.

“The fleet age is as old as it’s been, both in Europe and North America,” he added. “There’s essentially a pent-up demand for farming.”

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