The market conditions remain challenging, but the farm machinery industry appears to be sailing calmer waters, evident by AGCO, Kuhn Group and Deutz Ag results for the first six months of this year. AGCO net sales of US$3.8 billion for the first half of 2017 increased 6.7% compared to the same period in 2016, and sales for the full year are expected to reach US$8.0 billion (US$7.4 billion 2016). “Higher demand and margins in our Europe/Middle East region are driving our improved results and increased outlook for the full year,” said top man Martin Richenhagen, who added that lower demand from the arable farming sector is being partially offset by more favourable conditions for dairy and livestock producers. The Kuhn Group recorded a strong increase in order intake during the first six months of this year – up 6% to CHF592 million (€523 million). The company reckons the mood in the farming sector in Western Europe was noticeably more confident in the first half of 2017, and rising milk prices and stabilising meat prices have had a positive effect on the dairy and livestock sectors. Kuhn expects a continued recovery in the market for agricultural equipment during the second half of this year, and predicts stable milk prices could continue to stimulate the demand for grass and feeding equipment. Cereal prices, and the market for arable machinery, are likely to remain volatile. Finally, Deutz Ag revenue rose by 14% to €734.5 million in the first half of 2017. A total of 79,599 engines were sold in the six-month period – up 14.2% on the first half of 2016.