AGCO Corporation (NYSE:AGCO) Q3 2023 Earnings Call Transcript

Our key success overall is the continued execution of our Farmer First strategy. Our focus is on growing our margin-rich businesses like Fendt, parts and service, and our Precision Ag business that we mentioned several times. We’ve invested heavily in all of these, and we continue to do that. The announcement of the AGCO-Trimble joint venture is — in this past quarter, represents the biggest ag tech deal in history and will enable AGCO to further develop farmer-focused solutions that are solving critical problems, many of them with very short paybacks. The large ag markets continue to be higher than historical averages globally, and farm fundamentals are supporting farmers’ investments. Over the last few quarters, we’ve touched on many factors supporting our markets, including growing populations, changing diets, low stock-to-use levels, increased demand for biofuels and relatively healthy commodity prices.

All of these trends give us confidence in the long-term health of our industry. In fact, when you take a look at just renewable diesel, we’re seeing that in the US by 2028 — or 2025, sorry, renewable diesel demand will grow to about — to consume about 40% of the current US soybean makers. That’s very similar to what’s happened with ethanol consumption of the corn acres. So, there’s a big demand growth driver right on the horizon here. We look forward to seeing many of you at our AGCO Technical Meeting on November 14th in Hanover. Thank you very much for your participation today and have a great day.

Operator: Thank you for joining the AGCO third quarter 2023 earnings call. The call has concluded. Have a nice day.