Agco, the farm equipment maker, plans to start importing low-cost tractors from India to the US later this year to meet surging demand from so-called ‘rural lifestyle’ farmers.

The US group will import Massey Ferguson-brand tractors, built in a joint venture with Tafe in Chennai, to compete with such rivals in the small tractor market as Deere and CNH. Mahindra & Mahindra, the Indian tractor maker, already exports some models to the US.