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                                                                    EXHIBIT 99.1



COMPANY NEWS RELEASE
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[AGCO LOGO]   AGCO Corporation
              4205 River Green Parkway   Duluth, GA USA 30096-2568
              www.agcocorp.com
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              Telephone 770.813.9200


FOR IMMEDIATE RELEASE
Tuesday, May 24, 2005

CONTACT:  Molly Dye                              or   Andy Beck
          Vice President, Corporate Relations         Senior Vice President and
          (770) 813-6044                              Chief Financial Officer
                                                      (770) 813-6083

                   AGCO ANNOUNCES REDEMPTION OF SENIOR NOTES;
               RECEIVABLE ARRANGEMENT WITH JOINT VENTURE COMPLETED

     DULUTH, GA - May 24th - AGCO Corporation (NYSE:AG), a global manufacturer
and distributor of agricultural equipment, announced today that it will redeem
its $250 million principal amount 9 1/2% Senior Notes due 2008 on June 23,
2005. The Company will redeem the notes at a price of approximately $261.9
million, which includes a premium of 4.75% over the face amount of the notes.
The premium of approximately $11.9 million, or approximately $0.12 per share,
will be reflected in interest expense, net in the Company's financial results in
the second quarter of 2005. In addition, the Company will be required to
write-off the remaining balance of the deferred debt issuance costs of
approximately $2.1 million, or $0.02 per share, at the time of the redemption.
The funding sources for the redemption price are expected to be a combination of
cash generated from the transfer of wholesale interest-bearing receivables to
AGCO Finance LLC and AGCO Finance Canada, Ltd., AGCO's U.S. and Canadian retail
finance joint ventures (as further discussed below) and the company's revolving
credit facility borrowings and available cash on hand. The Company expects to
reduce future yearly interest costs by approximately $14 million, or $0.14 per
share, as a result of this redemption.

     AGCO has also completed an agreement to transfer, on an ongoing basis, the
majority of its wholesale interest-bearing receivables in North America to AGCO
Finance LLC and AGCO Finance Canada, Ltd., which are joint ventures owned 49% by
AGCO and 51% by a subsidiary of Rabobank Nederland. The transfer of the
receivables is without recourse to AGCO, and AGCO will continue to service the
receivables. The Company has evaluated the sale of such receivables and has
determined that these transfers should be accounted for as off-balance sheet
transactions. The initial transfer of wholesale interest-bearing receivables
resulted in net proceeds of approximately $94 million. The impact of this
agreement is expected to result in a reduction in interest income, but will be
offset by increased joint venture income and reduced selling, general and
administrative expenses.

     "We are pleased to be in a position to reduce high-cost debt and generate
lower interest costs in the future", stated Martin Richenhagen, President and
Chief Executive Officer. "In addition, the arrangement with AGCO Finance allows
for a more efficient financing source for interest-bearing receivables and
provides our dealers with additional floorplan financing options."

     SAFE HARBOR STATEMENT

     The forecast of the effect on our financial results of the redemption and
the agreement to transfer receivables is forward-looking and subject to risks
which could cause actual results to differ materially from those suggested by
the statements for a number of reasons, including changes in the terms of the
replacement financing, interest rates and the performance of our business
generally. The Company disclaims any obligation to update any forward-looking
statements.




AGCO Corporation, headquartered in Duluth, Georgia, is a global manufacturer and
distributor of agricultural equipment and related replacement parts. AGCO
products are distributed in more than 140 countries. AGCO offers a full product
line including tractors, combines, hay tools, sprayers, forage, tillage
equipment and implements through more than 3,900 independent dealers and
distributors around the world. AGCO products are distributed under the various
well-known brand names AGCO(R), Challenger(R), Fendt(R), Gleaner(R), Hesston(R),
Massey Ferguson(R), New Idea(R), RoGator(R), Spra-Coupe(R), Sunflower(R),
TerraGator(R), Valtra(R), and White(TM) Planters. AGCO provides retail financing
through AGCO Finance in North America and through Agricredit in Australia, the
United Kingdom, France, Germany, Ireland, and Brazil. In 2004, AGCO had net
sales of $5.3 billion.

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Please visit our website at www.agcocorp.com.