Hot on the heels of CNH posting a dismal year for sales in 2024, AGCO has weighed in with its own set of results which tell a very similar story to that of its major rival.

Sales in the fourth quarter were down 24%, with the full-year numbers showing a decline of 19.1% in what the company's CEO, Eric Hansotia described as challenging market conditions.

The company did, however, still manage to post an 8.9% profit on that income.

AGCO have responded to the shortfall in orders with production hours cut by one-third, exactly the same as CNH, while it also reports a decrease in stock levels from the same quarter last year.

Despite the feeling of market collapse here in Ireland, Europe and the Middle East actually fared better than other regions, with sales down by just 10.9%for the year, well below the overall average for the company.

Retail tractor sales in Europe and the Middle East decreased 6% during 2024 compared to the previous year with more significant declines in Scandinavia, the United Kingdom, and Italy.

The company's North American and Asia-Pacific and African regional sales both suffered a drop of 24.7% and 24% respectively, while South America took a 38% hit.

Brazil was singled out for attention in the company's report, as it noted that farm acreage in the country increased only modestly in 2024 after five years of more significant growth.

It was also suggested that the decline was due to lower commodity prices, rising farmer debt, and reduced demand from China, all of which induced a sense of caution among Brazilian farmers.

These factors would also have affected the rest of the region and demand in Brazil is expected to remain flat in 2025, due to the market dynamics.

One of the more notable features causing the downturn was the decline in sales of high horsepower tractors which was evident around the world.

This is probably a reflection of a growing divide between the tillage and stock sectors with returns on crops under pressure, further benefitting dairy and meat producers as feed becomes cheaper.