John Deere bets on technology and sees gradual recovery of Brazilian agriculture

The combination of high interest rates, tight margins and geopolitical uncertainties should still keep Brazilian agribusiness in a challenging scenario in 2026. But, for John Deere, the sector remains solid in the long term and Brazil remains one of the company's most strategic markets in the world.

In an interview with CNN, Cristiano Correia, global vice president of John Deere in Brazil, stated that the sector is still expected to face "rough seas" this year, although there is an expectation of gradual improvement from 2027.

"This year is still a difficult one. Next year could be better, but this will depend on some factors, mainly margin, price of agricultural products, demand and production. We also need to avoid new surprise events on the global stage, such as geopolitical conflicts", he stated.

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According to him, Brazil faces an important aggravating factor in relation to other markets: the high level of interest rates, which puts pressure on rural producer investment and makes credit more expensive.

Despite this, Correia assesses that the scenario is cyclical and tends to normalize.

"Brazilian farmers need to understand that this is a moment that will pass. Brazil is one of the prominent countries in the world, responsible for a very relevant portion of global food production. Furthermore, we produce fiber and clean energy for the world", he said.

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With 189 years of history, John Deere claims to have gone through different economic and agricultural cycles over the decades. "We have already seen all possible scenarios. Just as we have had extremely positive years, we have also faced difficult times. And we know that this will pass", highlighted the executive.

Technology as the main strategy
Faced with a more cautious market, the company's strategy has been to increase investments in solutions capable of "unlocking value" for rural producers.

According to Correia, the bet involves everything from new software to state-of-the-art machines and embedded technologies for different customer profiles - soybean, corn, livestock and forestry producers.

"We are seeing a lot of opportunities in technology. And we are not just talking about new software, but also new machines and solutions capable of increasing efficiency and productivity," he said.

Among the initiatives highlighted is the advancement of precision agriculture. The company has been investing in technological kits that allow the modernization of existing machines, without the producer necessarily needing to purchase new equipment.

"Those who cannot afford to buy a new machine can update their current machinery with moderate or advanced technology. This increases efficiency and reduces costs", he explained.

Another strategic focus of the company is strengthening the dealership network and remote technical assistance.

Today, according to the company, around 85% of initial services are already carried out virtually, which reduces response time and operational costs for the producer.

"The customer wants instant support. Remote service has brought important advances in solving problems and reducing costs", he stated.

Credit and expansion in Brazil
The financial area also appears as an important part of the company's strategy. The John Deere bank and the joint venture with Bradesco have been used to expand financing alternatives for rural producers.

For the company, Brazil continues to be the main focus of global growth.

"Brazil is the apple of John Deere's eye. It is an extremely representative market for the company and we need to continue investing in research and development", said Correia.

The company claims to have launched around 20 new products on the market this year alone and intends to maintain the pace of innovation in the coming cycles.

Global competition
When commenting on the international environment, the executive cited the advancement of Asian competitors, especially China and India, but stated that Brazil still leads in agricultural efficiency and technology adoption.

"China produces a lot, but demand is also huge.

India has been investing heavily in technology in the short term", he assessed.

Correia also highlighted Argentina's new economic environment, which reduced taxes and levies on the agricultural sector, encouraging local investment and restoring rural producer confidence.

"Argentina has very good soil and farmers have started to believe in agriculture again. But Brazil continues to lead at the forefront, mainly in efficiency and technology", he concluded.

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Source: CNN