AGCO Corp., Tractor Factory Hit By Ransomware Attack, US Planting Season Interrupted

JAKARTA – Cyber attacks aimed at weakening a country continue to emerge. Even in the United States, which is known to have capable cyber defenses, it must experience this attack. One of the victims is their disturbing agricultural production.

US farm equipment manufacturer AGCO Corp said on Friday, May 6 that it had suffered a ransomware attack affecting their operations at several of its production facilities. Even AGCO dealers say tractor sales have stalled during the crucial growing season.

Georgia-based AGCO said in a statement that it expected operations at some facilities to be affected for "several days and potentially longer."

The ransomware attack comes at a time when US farm equipment makers are already facing persistent supply chain disruptions and labor strikes that keep them from meeting demand for equipment from farmers. This of course creates problems when US agriculture enters the growing season.

AGCO did not disclose the names of the facilities affected by the attacks or whether any data was stolen. But they said they were still investigating the extent of the attack that occurred on Thursday, May 5, and are working to improve the system.

Tim Brannon, president, and owner of B&G Equipment Inc in Tennessee told Reuters he had been unable to access the AGCO website to order and search for parts since Thursday morning.

"We just have to believe that it will end as soon as possible because we are entering the busiest time of the year and it is going to be very damaging to our business and our customers," Brannon said.

AGCO, which competes with its larger competitor Deere & Co., sells and combines, manufactures, and assembles tractor products in 42 locations worldwide with 1.810 dealers in North America. Dealers are now struggling to fill orders that have already piled up.

The company told dealers it was now "prioritizing" its most critical business systems in an e-mail read to Reuters by the dealer, who declined to be named.

"I've got about nine orders I need to place now," the dealer said.

He said AGCO told him that "digital systems" had been impacted around the world. While AGCO did not respond to requests for additional comment.

As a result of these attacks and selling disruptions, AGCO's shares fell 6% to $125.55 per share in afternoon trading.

Ransomware attacks in the US have targeted food and fuel companies in the United States in recent years. Including oil chain Colonial Pipeline and meat processing company JBS. Last fall, at least three-grain handlers in the Midwest were hit by ransomware attacks.

It's not clear where the attack came from, though many suspect Russian-sponsored hackers. But the Russian side has always denied the accusations.