Agricultural machinery sales drop more than 22% in revenue

The agricultural machinery and equipment industry continues to shrink, according to Abimaq (Brazilian Association of Machinery and Equipment Industry), with the biggest drops in revenue and investment in the sector.

In April, total net revenue from sales of agricultural machinery fell 22.2%, to R$4.2 billion, compared to the same month of the previous year.

In the year to date, revenue totaled R$17 billion, a decrease of 17.9% compared to the same period in 2025.

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According to Abimaq, the April data "reinforces the perception that the improvement observed in March did not represent an inflection in the cycle".

"The sector continues to operate under strong domestic restrictions, low confidence in new investments and growing external competitive pressure", highlighted the entity in a note.

The association highlights that there are three simultaneous movements underway, the weakening of domestic demand, positive exports and the continued loss of participation by the national industry.

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Sales of agricultural equipment
In the case of tractors, 3,600 were sold in the fourth month of the year, which also registered a drop of 4.2% in the interannual comparison.

Factory sales totaled around 3,600, a decrease of 14.7% compared to the same month of the previous year.

Harvesters sold to the end consumer totaled 176, a drop of 33.6% compared to the same month of the previous year. Factory sales totaled 54 units in the month, a drop of 41.3% on the same basis of comparison.

The association highlights that there are three simultaneous movements underway, the weakening of domestic demand, positive exports and the continued loss of participation by the national industry.

Exports
Exports of agricultural machinery totaled R$160 million in the month, an increase of 18.8% when compared to April 2025.

In the year to date, export revenue totaled US$583 million, an increase of 20.1% compared to the same period of the previous year.

In April, 495 tractors were exported, an increase of 54.2% year-on-year. Harvesters exported totaled 27 units, an increase of 50% on the same basis of comparison.

Of the total exports of the machinery and equipment sector, the performance in April was positive in the year-on-year comparison, with growth of 41.7% and shipments of US$ 1.47 billion.

In the year to date, the increase reaches 17.1%. Abimaq highlights that a relevant part of the advance stems from a very depressed comparison base at the beginning of 2025, especially in the United States.

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Lower domestic demand affects segments more dependent on credit, while the increase in exports is still insufficient to compensate for the contraction in the domestic market. Finally, the association highlights that, even in an environment of economic slowdown, there is a loss of industry participation in Brazil

In April, the data shows that the improvement observed in March "was essentially temporary". The apparent consumption of machinery and equipment fell 20.6% compared to the same month of the previous year and totaled R$27.76 billion.

Net sales revenue reached R$ 21.3 billion in April, a decrease of 3.9% compared to March and a decrease of 14.9% compared to the same month in 2025. In the accumulated period from January to April, the drop reached 12%, while the indicator in 12 months began to record a decrease of 0.7%.

Abimaq highlighted that the data is "an important sign that the slowdown is no longer restricted to the margin and has started to contaminate the sector's aggregate performance". The main vector of results is still the internal market, which concentrates the decline in investments linked to agriculture and the processing industry.

Segments that concentrate activities that are more dependent on credit are impacted by the more restrictive environment and high interest rates.

For the association, "the persistence of restrictive monetary policy has been producing cumulative effects on activity."

The perception is that the problem deteriorates companies' investment capacity and increases caution in decision-making.

In March, the decline in the acquisition of domestically produced machines was offset by the increase in imports, however, April saw declines in both the acquisition of national (-26.6%) and imported (-13.5%) machines.

The result indicates, for the sector, the more widespread weakening of productive investment and describes a scenario of lower national productive activity.

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Source: CNN