In its official October 2026 survey published late in the month, CEMA reported the European agricultural machinery General Business Climate Index dropped 10 points to -31 (on a scale from -100 to +100), hitting its lowest level in 20 months.
While the livestock, dairy, and utility tractor segments remain somewhat resilient due to stable milk and meat prices, demand for heavy arable equipment (high-horsepower tractors and combine harvesters) continues to deteriorate across major Western European markets—particularly in France, Italy, and Germany.
CEMA noted that European farmers are facing compressed margins from low crop prices, leading to widespread delays in farm equipment replacement and driving increased activity toward the second-hand machinery market.
Source: CEMA (European Agricultural Machinery Association) – Business Barometer (October 2026)
PSR Analysis. The sharp decline in CEMA’s barometer signals that European agricultural machinery manufacturers—such as AGCO (Fendt/Valtra/Massey Ferguson), CNH Industrial, and Same Deutz-Fahr (SDF)—must prepare for an extended soft patch through early 2027.
While dealer inventory destocking is nearly complete, farm-level order placement for primary tillage and harvesting equipment remains weak. To protect operating margins, OEMs are shifting marketing focus toward high-margin utility platforms, specialized vineyard/orchard machinery (popular in Southern Europe), and precision retrofits.
The upcoming EIMA International exhibition in Bologna (Nov. 10–14, 2026) will serve as the crucial litmus test where OEMs will attempt to stimulate 2027 order books with new precision-farming technologies.PSR
Emiliano Marzoli is Manager of European Operations
