“For production precision ag, expect sales down 5% to 10%, which is comprised of the market outlooks noted.”

In context

“expect the European ag industry to be flat to up 5% in 2026. The outlook for dairy margins continues to be robust, and arable cash flows are showing improvement as harvest results exceeded expectations in key markets such as France, Germany, and Spain. With interest rates stabilizing at current levels, the environment in Europe is conducive for growers to move forward with planned investments following a period of caution. Josh Jepsen: A couple of points to add. As we translate these industry outlooks to our own sales forecast, we're expecting small ag and turf to return to growth in 2026 with sales up about 10%. And this is driven by a combination of improving end-market demand as well as the benefit of producing much closer to retail demand compared to underproduction in 2025. John May: For production precision ag, expect sales down 5% to 10%, which is comprised of the market outlooks noted. Europe up, South America flat, North America down. For large ag in North America, while we see the industry declining in 2026, we also see a number of positive factors that lead us to believe this coming year will mark the bottom of the cycle. As noted earlier, consumption of U.S. Corn and soy remains strong and is expected to grow. Paired with strong support for biofuels and recent improvement in commodity prices, demand picture on grains feels incrementally better compared to a quarter ago. Additionally, with new trade agreements driving purchase commitments, further stability has been brought to the market. Lastly, the continued reductions that we're seeing in used inventory levels are freeing up the market as the trade ladder gets healthier. Christopher Seibert: One additional comment”