Machinery sector faces ‘challenging’ scenario, says Abimaq

The Abimaq Agricultural Machinery and Implements Sector Chamber released, this Friday (13), an assessment of the current market situation. The chamber found a “challenging” scenario for the sector amid the drop in revenue.

According to Pedro Estevão Bastos, president of the Chamber of Agricultural Machines and Implements at Abimaq, in the last six months, the sector’s revenue fell 7% compared to the same period of the previous year. In January 2026 alone, revenue fell by 15.6%.

High default rates, strict credit granting, high interest rates and falling commodity prices are the main reasons for the sector’s drop in revenue, according to Abimaq.

In this scenario, reduced margins and high unpredictability pressure farmers to prioritize the purchase of inputs, while investments in fleet renewal take a backseat.

The expectation for revenue in 2026 remains negative, with a drop of 8% in the year when compared to 2025. The downward bias keeps negative revaluations more likely.

The ongoing war in the Middle East, which involves the United States, Israel and Iran, brings other negative variables, which are yet to be evaluated by the sector.

The balance was presented at a meeting held during Expodireto Cotrijal, in Não-Me-Toque (RS).

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