Brazil Projects 8% Decline in Agricultural Machinery Sales for 2026
Brazil’s agricultural machinery industry expects a weaker market in 2026 after a negative start to the year. Industry representatives cite high interest rates and lower producer profitability as the main factors limiting investment in new equipment.
Brazil’s agricultural machinery sector completed a weak first quarter and is already projecting a recessionary scenario for 2026.
According to estimates from the Brazilian Association of Machinery and Equipment Industry (ABIMAQ), industry revenue could decline by 8% compared to the previous year.
Key figures
Projected industry revenue decline in 2026: -8%
Sales to end users in Q1 2026: -8.6% year-over-year
Factory production in Q1 2026: -16.4% year-over-year
Estimated sector growth in 2025: +7%
Pedro Estevão Bastos, President of the Agricultural Machinery and Implements Chamber (CSMIA) at ABIMAQ, said the slowdown follows a previous growth cycle, with 2025 results largely supported by strong first-half demand.
According to Bastos, the current market environment reflects the appreciation of the Brazilian real against the US dollar, which has reduced producer profitability, in addition to persistently high interest rates.
“When profitability declines, producers reduce investments,” he said.
The outlook suggests Brazilian manufacturers may continue facing weaker domestic demand in the near term, particularly in machinery segments that depend heavily on financed purchases.
