Agco Corp. sees lower farm equipment sales in 2009 as global economic crisis effect

(DANIEL LOVERING, Associated Press) Agco Corp., one of the world’s largest farm equipment makers, said Thursday it expects lower sales of its tractors, combines and other machinery next year as the global financial crisis erodes demand.

Like other farm equipment companies, Agco faces the prospect of declining sales after strong growth earlier this year, which was fueled by soaring crop prices. But the price of corn, a bellwether of the agricultural economy, fell recently to less than $3 a bushel from $7 earlier this year as commodity markets plunged amid the global economic crisis.

Still, the Duluth, Ga., company’s chief executive, Martin Richenhagen, told analysts at an investor conference in New York that long-term prospects remained bright as farmers call for more sophisticated machines to boost crop yields and meet expanding food and energy needs worldwide.
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