Chief Executive Officer Martin Richenhagen stated, "The global recession had a major impact on farmer sentiment in the second quarter of 2009, and with the accompanying constrained credit environment, demand for agricultural equipment softened across the end markets in North America, Europe and South America."

AGCO cut its full-year sales and earnings forecast and warned that "worldwide industry demand for farm equipment is expected to soften for the remainder of 2009." The company also noted "The recent volatility in commodity prices has increased the level of uncertainty around farm income and farmers remain conservative with their equipment investments."

Richenhagen had a positive outlook on agriculture as he expects global grain inventories to remain below historical levels.

"Longer term, world grain use is expected to increase resulting from steady population growth, higher per capita incomes, changing diets and increases in biofuel production. This will require additional harvested area, increases in yields and a growing need for farm equipment."

Richenhagen was interviewed on CNBC yesterday. See interview below: