Agco has turned its attention to Africa too. It recently bought a factory on the continent making it the first Western manufacturer to start producing tractors there, Richenhagen said.
The executive told CNBC establishing a manufacturing presence in the region makes sense. The population is expected to double to 2 billion people and farmers will have to start using more machinery instead of hand tools and animal labor to meet consequent food demand.
"They already have a problem with food security," the Agco CEO said.
But there is good news. "They have 60 percent of the global reserves of tillable land, and only 20 percent of this land is used today," Richenhagen said.
To help improve crop yields, Agco has set up a farm in Zambia to teach Africa's farmers about Western techniques and how to use the equipment. It is also helping to arrange financing, he said.
Nearer term, Agco is forecasting a 2013 revenue increase of 3 to 5 percent with earnings per share coming in at $5.50 to $5.75. It also expects a one percentage point increase in the operating margin to 9 percent next year.
(Read More: Boldest Predictions 2013.)
Both Jefferies and BMO both raised their price targets on the stock to $55 after the revised outlook. They maintain "buy" and "outperform" recommendations, respectively.
The BMO analyst wrote in the research note, "We reiterate our Outperform rating on Agco stock owing to strong industry fundamentals, the company's attractive geographic positioning, and the overly low valuation."
The $55 price target assumes Agco trades at 10 times 2013 estimates compared with about 9 times today.