AGCO is accelerating a major shift in its dealer network, moving toward an “Amazon style” mobile service model that brings technicians, tools and parts directly to the farm. The expansion of the company’s FarmerCore initiative marks one of its most significant structural changes in recent years, CFO Damon Audia told investors at the 2025 UBS Global Industrials and Transportation Conference.
Dealers already complete more than 85 percent of service work in the field, Audia noted, allowing them to support entire farm operations instead of individual machines. The company believes this is the future of aftersales in agriculture, especially as farmers grow accustomed to dealership grade repairs without leaving their fields.
“With mobile fleets and regional parts depots, it becomes difficult for farmers to go back to hauling equipment into a shop,” Audia said. Early adoption across North and South America shows strong momentum, with dealers embracing smaller physical footprints, lower cost structures and stronger parts and service profitability.
AGCO’s On Farm Model Reshapes Dealer Economics
The FarmerCore expansion enables dealers to replace large brick and mortar facilities with modular service hubs supported by mobile trucks. This approach lowers overhead, increases rural service coverage and strengthens margins in a tightening industry.
Strategic Moves Position AGCO for a Volatile Market
Over the past 18 months, AGCO has deployed several structural actions to adapt to weaker demand and dealer inventory pressure.
These include:
- Expansion of precision ag technologies through the Trimble alliance.
- Exiting its low margin grain and protein division.
- Restructuring expected to deliver 175 to 200 million dollars in annual savings.
- Selling its stake in Tractors and Farm Equipment.
- A revised capital allocation plan prioritizing share buybacks.
AGCO expects to underproduce in 2026 to help dealers reach a targeted six month supply, especially as commodity prices remain soft and farmers delay equipment upgrades. The company forecasts 2025 sales of 9.8 billion dollars, a 16.2 percent drop versus 2024.
While USDA projections show a rebound in net farm income for 2025, Audia cautioned that real market recovery may not arrive until 2027. Farmers remain hesitant to invest in new technology despite aging fleets, largely due to weak price signals and profitability concerns.
Technology Demand Grows but Farmers Still Hesitate
Audia noted that rising expectations for automation, connectivity and precision ag capability will eventually push buyers toward new machines. However, until income stabilizes, many are postponing purchases even as upgrades would provide operational benefits.
About AGCO
AGCO Corporation is a global manufacturer of agricultural machinery and precision ag technology, known for brands such as Fendt, Massey Ferguson, Valtra and Challenger. The company focuses on high tech solutions for professional growers including guidance systems, smart implements and full farm management platforms.
