AGCO Targets $2B in Precision Agriculture Net Sales by 2029

AGCO says it is outpacing the industry with its suite of precision ag solutions. Seth Crawford, senior vice president and general manager of AGCO’s PTx brand, laid out the company's journey to become the global industry leader in mixed fleet smart farming and autonomy solutions. 

The growth of the PTx portfolio is centered on:

• Innovating faster and better than competitors with 3-5 new products launched each year 
• Accelerating sprayer portfolio rollout
• Executing Connected Cloud strategy and globalizing the product portfolio
• Growing distribution by increasing full-line technology dealers, 
• Engaging new original equipment manufacturers (OEM)
• Increasing portfolio offerings to OEMs, including AGCO's leading brands of Fendt, Massey Ferguson and Valtra

Following the meeting, J.P. Morgan analyst Tami Zakaria noted that AGCO’s “R&D spend in precision ag is expected to remain at about 4% of sales over the intermediate term while AGCO intends to be opportunistic around inorganic growth as it looks to expand or add upon existing product offerings.” 

During the meeting, Crawford said AGCO is committed to its retrofit-first, brand-agnostic strategy, emphasizing the importance of mixed fleet solutions.

Zakaria says management remains confident that the “overall trajectory of growth remains unchanged, with strong potential for recovery and continued market leadership.” 

Watch the full version of this episode of On The Record