Farmer-First Strategy: Delivering Value for Farmers and Generating Higher Through-the-Cycle Returns for Shareholders

AGCO’s New Financial Targets

AGCO Corporation, a global leader in the design, manufacture, and distribution of agricultural machinery and precision ag technology, recently announced new financial targets at its 2024 Analyst Meeting. The company is focused on driving enhanced durability and profitability through the cycle, with targets including:

• Improving adjusted mid-cycle adjusted operating margins to 14%-15%
• Outgrowing the industry by 4%-5% annually
• Annually delivering free cash flow conversion of 75%-100%
• Expanding net sales of Fendt in North and South America to $1.7 billion
• Growing parts net sales to $2.3 billion while increasing market share of genuine AGCO parts
• Delivering precision ag net sales of $2.0 billion

AGCO’s Farmer-First Strategy

“Our Farmer-First strategy has served us well since its launch in 2021, driving us to deliver even more innovative solutions for farmers through our differentiated portfolio of leading brands,” said Eric Hansotia, AGCO’s Chairman, President, and Chief Executive Officer.

This strategy focuses on putting farmers at the forefront of everything AGCO does, ensuring that their needs and challenges are addressed through innovative solutions and high-quality products. By prioritizing the farmer, AGCO aims to not only deliver value to their customers but also generate higher through-the-cycle returns for shareholders.

AGCO’s commitment to the Farmer-First strategy is evident in their ambitious financial targets, which aim to not only drive profitability but also outperform the industry and expand their market presence across the Americas.

Impact on Me

As a farmer, AGCO’s Farmer-First strategy is likely to benefit me by providing innovative solutions and high-quality products that address my needs and challenges. By focusing on the farmer, AGCO is committed to delivering value and generating higher returns, which could ultimately improve my farming operations and bottom line.

Impact on the World

AGCO’s Farmer-First strategy and ambitious financial targets have the potential to impact the world by driving innovation in agriculture and improving the sustainability and productivity of farming practices. By prioritizing the needs of farmers and delivering value through their products, AGCO is contributing to the global effort to feed a growing population while ensuring the long-term viability of agriculture.

Conclusion

In conclusion, AGCO’s Farmer-First strategy is not only delivering value for farmers and generating higher through-the-cycle returns for shareholders, but it is also driving innovation and sustainability in agriculture. By putting the farmer at the forefront of their operations, AGCO is paving the way for a more efficient and productive agricultural sector that can meet the challenges of the future.