At a special media briefing in Melbourne last week, the company detailed its soon-to-be-introduced Selective Catalytic Reduction (SCR) technology that also delivers a claimed 5pc reduction in fuel consumption when fitted to its new-generation tractors.

The move comes ahead of new emission legislation kicking-in across both Europe and North America where sales success undoubtedly will hinge on the key brand names in farm mechanisation being able to unveil engines that perform to previously unheard of levels of efficiency.

AGCO/Challenger spokesman Anthony Ryan said the new breed of power plants must reduce reduce both nitrous oxides (NOx) and Particulate Matter (PMs) levels – the former contributing to smog and the latter associated with detrimental health effects.

"AGCO's approach is to reduce emissions of NOx and PMs without comprising engine performance," he said.

Mr Ryan said that "pretty much everyone" has been able to meet the current North American Tier 3 and European Euro 3A legislation for off-road diesel engines.

But it's going to be a different story when it comes to satisfying the Tier 4i and Euro3B legislation which come into effect by 2011.

AGCO Australia's Mark Francis described MF's impending move to adopt European-derived SCR technology as "a bold initiative" for the organisation.

Describing SCR as "an elegantly simple engineering solution", Mr Francis said the technology already is being utilised by international trucking companies likes Volvo and Mercedes.

The really big attraction of SCR, however, is that it meets both current and future emission standards, which continue to tighten up to 2014, the pivotal year for the widespread adoption of new engine technologies like SCR.

"For us it's a very important step because we are first into the field with a tractor with SCR," Mr Francis said.