Agricultural machinery market is unlikely to improve in 2026

The 2026/27 Harvest Plan did not make major advances, but it does not disappoint either, it provides a sense of continuity. This is the assessment of Pedro Estêvão, president of the Agricultural Machinery Sector Chamber of Aibmaq (Brazilian Association of Machinery and Equipment).

The line for financing the purchase of agricultural machinery, Moderfrota resources fell from R$12.5 billion to R$5.8 billion, on the other hand, interest rates fell 1 percentage point to 12.5%.

The resources from Finep - the development agency - received interest of 9.2% and could compensate Moderfrota's losses, he argued.

"All these cheaper lines will not make the market smaller this year. Farmers have low profitability and even though they have cheaper resources, sales are not expected to improve this year", said Estêvão.

Source: CNN