To meet the growing demand of Central Valley farmers for ag equipment, manufacturing giant AGCO will open a new facility in Visalia, only a few miles from its first one.

The 115,000-square-foot facility — planned for completion by late 2026 — will help the company supply parts for brands under their portfolio, said Jena Holtberg-Benge, vice president of aftersales and parts for AGCO, in a statement.

The new parts distribution center will replace the existing one less than three miles away.

“California’s high value crop farmers rely on precision equipment that runs long hours, often logging over 2,000 hours per year in demanding conditions,” Holtberg-Benge said. “By expanding our parts distribution capabilities in Visalia, we’re putting farmers first — ensuring rapid access to critical components that keep machines running and on track during peak seasons.”

AGCO Keeping Up With Demand for Fendt Brand

AGCO’s leading brand, Fendt, has been taking off in the U.S., the company said. AGCO also has the Massey Ferguson and PTx brands.

The company — headquartered in Duluth, Georgia —makes all sorts of heavy equipment for ag: tractors, combine harvesters, rakes, and balers.

The new center will feature advanced warehouse automation, expanded stocking capacity, and improved forecasting capabilities to ensure faster delivery and parts availability.

It will keep the roughly 20-plus employees, a spokesperson for the company told GV Wire. The Visalia plant allows AGCO to reach any dealer or farmer on the West Coast within a day, the release stated.

The new facility will help reduce lead times and improve fill rates for high-demand parts.

Equipment Purchasing Down Since Trump Trade Policies

Heavy equipment purchasing has slowed in 2025, largely because of Trump administration trade disputes with other countries, according to AGCO’s second quarter results.

North American retail tractor sales declined 13% in the first half of 2025 compared to 2024. Combine units fell 33% in the same time period.

Despite the drop, the company still expects a rise in demand.

Eric Hansotia, chairman, president, and CEO of AGCO said in the July 31 release that consumers have shifted to “smarter, more efficient solutions” to protect margins.

“Challenging farm economics in the first half of 2025 have dampened demand for agricultural equipment across Europe and the U.S., with declining commodity prices and rising input costs specifically impacting U.S. farmer sentiment,” Hansotia said. “Instead, there is growing interest in precision agriculture tools that offer efficiency gains without significant capital investment.”

AGCO had net sales of $11.7 billion in 2024