Deere’s AI Business Is Growing Even as Farm Equipment Demand Weakens

Deere & Company entered 2026 facing a softer agricultural market. In its fiscal second quarter, the company’s Production and Precision Agriculture division reported a 14% decline in sales as farmers continued pulling back on large equipment purchases amid lower crop prices and elevated financing costs. Deere still expects large agriculture equipment sales in the U.S. and Canada to fall 15%–20% this year, according to its Q2 FY2026 earnings materials.

But inside the downturn, another part of Deere’s business continued expanding.

During the quarter, Deere highlighted growing adoption of its AI-enabled precision agriculture tools, particularly its See & Spray system, which uses computer vision and machine learning to identify weeds and reduce herbicide application. The company said the platform expanded from covering 1 million acres in its first year to 5 million acres globally last year. Management also said returning customers are using the system across more acres this season after seeing roughly 50%–60% herbicide savings.

The contrast stood out across Deere’s earnings discussion. Farmers may be delaying purchases of large machinery, but many are still investing in software, automation, and precision systems that directly lower operating costs.