Deere and Company announced it will spend $40 million to add production of another line of tractors, the 8-R, at its plant in the city of Montenegro.
Spokesman Ken Golden says demand is growing in Brazil for higher horsepower models like the 8-R.
The five-year old plant already manufactures three smaller models, the 5,000, 6,000, and 7,000 series.
Golden says this expansion in Brazil will not affect production or employment at the Waterloo, Iowa plant where several lines of tractors, including the 8-R, are now being made.
Production of the 8-R in Brazil should begin in 2015.
John Deere first came to Brazil in 1979, when it invested in a joint venture in the country. In 2008, it announced plans to build its own factory.
Illinois Public Radio's Herb Trix contributed to this report.