Companies in this industry manufacture agricultural equipment and machinery, as well as commercial turf and lawn care equipment. Major companies include AGCO, Deere, Great Plains Manufacturing, and Lindsay Corporation (all based in the US), along with Claas KGaA (Germany), CNH Industrial (UK), Kubota (Japan), Mahindra & Mahindra (India), and Shifeng Group and YTO Group (China).
Demand for agricultural machinery is driven by farm income and crop production projections for the next season and can vary highly year to year. The profitability of individual companies depends on the volume of products sold, since many manufacturing costs are fixed. Big companies have large economies of scale, especially in manufacturing tractors and combines. Small companies can be successful by making specialized equipment, especially tractor attachments. The US industry is highly concentrated: the 50 largest companies generate more than 80 percent of revenue.
Major products are tractors, self-propelled harvesting combines, tractor attachments, and other equipment used for crop production and farm animal management.Buy Now