Argo Tractors is a multinational company based in Fabbrico in the province of Reggio Emilia, in the heart of Italy’s Motor Valley. It designs, manufactures and distributes Landini and McCormick branded tractors thanks to its 6 plants in Italy, with 2,000 employees, 14 sales branches worldwide, 130 importers and 2,500 dealers. 

Easy Engineering: Brief description of the company and its activities.

2024 is very special year as the group celebrates the 140th anniversary of Landini’s activities and the 30th anniversary of the acquisition of the brand by the Morra family, which, with the subsequent entry of McCormick, created in 2007 Argo Tractors Group. 

Officine Landini Fabbrico, a factory for the production of oenological machinery, was officially established in 1884 by founder Giovanni Landini in the town where Argo Tractors’ headquarters are still located today. It was only in 1910 that the first fixed hot-bulb engine was produced, while the first tractor, the Landini 25/30 saw the light in 1925. The industrial district where the factory was born is the right one, since the following century saw the development of that passion, those ideas and skills for the automotive industry that would become famous throughout the World, giving rise to Motor Valley, an association to which Argo Tractors also belongs.

E.E: What are the main areas of activity of the company?

Argo Tractors fully responds to the needs and demands of agricultural mechanization thanks to a range that goes from specialized tractors to larger tractors for open fields. Product diversification and specialization allows the group to offer the market both machines for orchards and vineyards, in particular under the Landini brand, and for farm work and large crops, on which the McCormick brand, a symbol of high power and maximum technology, is particularly focused.


E.E: What’s the news about new products/services?

Argo Tractors is focused on the production of increasingly innovative tractors, carrying out teamwork by the technical team, constantly searching for the latest generation solutions in which the company invests yearly 6% of its turnover. The results speak for themselves, as witnessed by the prizes collected all over the world, starting from the most recent one collected in Hannover, Germany, during the last edition of the Agritechnica exhibition, where Landini REX 4-120GT Dynamic won “Tractor of the Year 2024” in the “Best of Specialized” category, while McCormick X5.120 P3-Drive triumphed in the “Best Utility” category. These are for sure innovative products, but the trend is towards production that is increasingly focused on sustainability. For this reason, a few years ago we started an electrification project that led to the creation of the REX4 Full Hybrid, a hybrid tractor with a diesel engine combined with an electric motor, as well as a vehicle, the REX4 Electra Evolving Hybrid, with a fully electric front drive on a suspended front axle. Projects that have already won international recognition.

E.E: What are the ranges of products/services?

Our production capacity is 20.000 tractors per year divided between Landini with 65% of the volumes and the remaining 35% for McCormick. We have currently available 450 different models ranging from 49hp to more than 310hp, to achieve all customers’ needs and requirements. Moreover, we invested in the development of Digital Solutions providing Fleet & Remote Diagnostics and Farm Information Management System for all tractors with Stage V engines. These digital solutions are easy to manage from mobile devices and provide constant control of farm costs by reducing the waste and helping farmers to adopt a more sustainable tillage. 

E.E: What is the state of the market where you are currently active?

After a 2022 signed by positive results, despite severe supply chain challenges, particularly in the agricultural mechanization domain, 2023 was characterized by sharply declining market volumes and prospects in almost all markets, due to the rising cost of money and the prolonged Russian-Ukrainian war, to which the conflict in the Middle East was added. Energy costs have stabilized to some extent, however the excessive increase in the cost of money and the reduction of the Tax Credit for 4.0 technologies have caused a standoff in the investment prospects of agribusinesses. Against this backdrop, in 2023, the global tractor market suffered an overall 13% decline, with a 23% drop in Africa, 3% in North America, 25% in Australia and 8% in Latin America. Negative trend (-5%) also in Europe. A positive exception, however, was Turkey with a growth of more than 50%.

E.E: What can you tell us about market trends? 

The highest power ranges, above 175 hp, showed strong growth, with registrations of these larger tractors up 12% year-on-year. 13% fewer tractors were registered between 80hp and 175hp, although this segment still accounts for almost half of all agricultural tractors registered in 2023. The number of tractors under 80hp registered in Europe declined slightly, with some growth for smaller machines. Prices of most agricultural commodities soared in 2022, following Ukraine invasion, which raised concerns about the availability of cereals and oilseeds. This had a knock-on effect on the price of feed, which led to higher prices for animal products. This supported farm incomes and, in turn, increased demand for machinery. But since the summer of 2022, global food supply chains have adapted to the new situation and food prices have fallen. By the end of 2023, global food prices, had fallen by more than a quarter from their peak in March 2022 and were more than 10 per cent lower than the previous year.


E.E: What are the most innovative products/services marketed?

Technology is increasingly an integral part of this sector and tractors are becoming more and more connected. Argo Tractors has for some years now been engaged in a fruitful process of digitisation with investments in ISObus technology, telematics and remote diagnostics and GPS-assisted driving. More recently, subscriptions have been developed for basic Farm Management Information System (FMIS) services on all Stage V tractors. This path has ensured the attainment of absolute levels of excellence and the creation of two Apps, MyLandini and MyMcCormick, dedicated to the use of digital telematics, remote diagnostics and Farm Management services, integrated with the Agrirouter platform and therefore able to collect and store data, allowing a completely digital management of fields, activities and machinery and also simplifying bureaucratic operations. In addition, through the sensors in the field and the connected machinery, a complete and real-time monitoring of the farm and the vehicles is possible. The benefit is tangible for all players in the agri-food chain and allows us to aim for environmental and economic sustainability, increased productivity, reduced waste, and traceability of agricultural products from the field to the table.


E.E: What estimations do you have for 2024?

For the first half of 2024, the global scenario is expected to continue the downward trend of the end of 2023, with market estimated to fall by 10% to 15%. The evolution of energy and transport costs, as well as the upcoming agricultural policy choices in the EU area, will be the challenges to be overcome for the agricultural machinery industry and agribusiness customers.