President Donald Trump has encouraged American farmers to expand operations and invest in larger equipment following a trade agreement with China to restart soybean exports, Bloomberg reported.

While the deal has lifted market sentiment, farm machinery producers say a recovery in sales is not yet evident. AGCO Corp., a leading tractor manufacturer, reported weaker-than-expected third-quarter results on Friday. Chief executive Eric Hansotia noted that orders had not surged immediately. “Our phones weren’t ringing off the hook yesterday with all kinds of purchasing orders coming in,” he said, though he described China’s soybean commitment as “net positive.”

The agreement, announced after a summit between Trump and Chinese President Xi Jinping, pushed soybean futures up about 11 percent in October, marking the largest monthly gain in over three years. Trump framed the development as an opportunity for farmers. “Our farmers are very happy. I suggest that they go out and buy larger tractors and more land,” he told reporters.

Farmers had previously postponed equipment purchases as China, the world’s largest commodities buyer, scaled back imports of US crops. For AGCO, North American tractor sales fell 10 percent through the first nine months of 2025, while sales of crop-cutting combines dropped 29 percent. The company’s shares fell as much as 4.7 percent after the earnings report.

Hansotia said the combination of resumed exports and a forthcoming government aid package could provide support in 2026. “We think this is going to be a little bit of a ‘show me’ situation where the farmers are going to need to have the trades actually happen,” he added.