Tractor manufacturers to seize sales opportunity in China

The world’s largest makers of tractors and combines are finding a rare opportunity for growth in China, despite a slowdown in the world’s No 2 economy, with big farm machines in demand as the rural labour force shrinks and plot sizes grow.

For manufacturers like US-based AGCO and Deere & Co and Italy’s CNH, Chinese demand for big machines could help to offset weakness in the US and EU, where farm incomes are declining with global commodity prices.

The trend also contrasts with stalling sales in construction equipment and passenger cars, which have been hit by the slowing Chinese economy.