Exhibit 10.2


                          FIRST AMENDMENT TO SHORT TERM
                           REVOLVING CREDIT AGREEMENT

         This First Amendment to Short Term Revolving Credit Agreement ("First
Amendment") is dated as of January 1, 1997, and is entered into among Ag-Chem
Equipment Co. Inc., a Minnesota corporation (the "Company"), NBD Bank ("NBD")
for itself and as Agent (in such capacity "Agent"), National City Bank of
Minneapolis, and Harris Trust and Savings Bank (together with NBD being
sometimes referred to collectively as the "Lenders" and individually as a
"Lender"). This First Amendment amends that certain Short Term Revolving Credit
Agreement dated as of June 28, 1996 (as amended, the "Credit Agreement"), among
the Company, Agent and Lenders. Capitalized terms not otherwise defined in this
First Amendment shall have the meanings given to them in the Credit Agreement.

         WHEREAS, the Company has requested that the Agent and Lenders consent
to the Company transferring certain of its assets to a new, wholly-owned
subsidiary of the Company, Ag-Chem Sales Co., Inc. ("Ag-Chem Sales") and that it
be allowed to generally transfer assets between subsidiaries.

         WHEREAS, the Agent and Lenders have agreed to consent to such
transactions on the terms and conditions set forth herein.

         NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, the parties hereto agree as follows:

         1. Conditional Consent. The Agent and Lenders hereby consent to the
Company transferring assets to Ag-Chem Sales effective as of January 1, 1997
(the "Transfer to Sales"), subject to the following terms and conditions:

                  (a) Ag-Chem Sales will deliver simultaneously with the
         execution of this Consent, guaranties of the Credit Agreement and Long
         Term Amended and Restated Revolving Credit Agreement dated as of
         January 12, 1996, among the Company, Agent and Lenders, substantially
         in the form given by the existing Guarantors;

                  (b) Ag-Chem Sales will deliver to Agent an officer's
         certificate, certifying copies of its articles of incorporation, bylaws
         and resolutions authorizing its guaranties; and

                  (c) Ag-Chem Sales will be owned 100% by the Company.

         2. Acknowledgments. The parties acknowledge that:

                  (a) Ag-Chem Sales shall be hereafter considered a "Guarantor"
         and a "Loan Party" under the Credit Agreement.

                  (b) The Company has submitted a revised Schedule 4.4 to the
         Credit Agreement, a copy of which is attached to this consent for
         reference, and this new Schedule 4.4 replaces the representations in
         the prior Schedule 4.4; and

                  (c) The Transfer to Sales will not be included in the basket
         amounts provided for in Sections 5.2(g)(iii) and 5.2(i)(v) of the
         Credit Agreement.

         3. Transfer of Assets Among the Loan Parties. Sections 5.2(g), (i) and
(k) of the Credit Agreement are hereby amended in their entirety to read as
follows:

         (g) Disposition of Assets; Etc. Sell, lease, license, transfer, assign
         or otherwise dispose of any of its business, assets, rights, revenues
         or property, real, personal or mixed, tangible or intangible, whether
         in one or a series of transactions, other than (i) inventory sold in
         the ordinary course of business upon customary credit terms and sales
         of obsolete or damaged material or equipment, (ii) the sale of all or
         part of Ag-Chem Equipment Co International Corp, a Virgin Islands
         corporation and/or Kurstjens Terra-Gator B.V., a Netherlands private
         limited liability company, (iii) transfers from one Loan Party to
         another Loan Party, and (iv) other sales of assets not to exceed
         $3,000,000 in the aggregate for all Loan Parties during any fiscal year
         of the Company; provided that so long as any Default or Event of
         Default shall exist and be continuing, no sales under clauses (ii) or
         (iii) above may be made beyond those contracted for at the time of such
         Default or Event of Default.

         (i) Investments. Make, commit to make or permit to exist any loans,
         investments, advances or extensions of credit to any person, firm or
         corporation, other than: (i) Cash Equivalents, (ii) loans not to exceed
         $500,000 at any time outstanding and travel advances extended to
         officers and employees of a Loan Party in the ordinary course of
         business, (iii) investments existing on the Effective Date in
         Subsidiaries that are not Loan Parties, (iv) investments by the Company
         in other Loan Parties, (v) loans from one Loan Party to another Loan
         Party, or (vi) other investments which in the aggregate do not exceed
         $1,000,000 at any time after the Effective Date.

         (k) Transactions with Affiliates. Enter into, or permit or suffer to
         exist, or be a party to, any transaction or arrangement, including the
         purchase, sale, exchange or use of any property or asset, or any
         interest therein, whether real, personal or mixed, or tangible or
         intangible, or the rendering of any service, with any Affiliate that is
         not a Loan Party or any director or officer of any Loan Party, except
         in the ordinary course of and pursuant to the reasonable requirements
         of the Loan Party's business and upon fair and reasonable terms which
         are no less favorable to such Loan Party than could be obtained in a
         comparable arms-length transaction with a person not an Affiliate or a
         director or officer of the Loan Party. The Company will not permit
         Ag-Chem Equipment International to have any operations or assets with a
         value in excess of $10,000.

         4. Ratification. The parties hereto acknowledge and agree that the
terms and provisions of this First Amendment amend, add to and constitute part
of the Credit Agreement. Except as expressly modified and amended by the terms
of this First Amendment, all of the other terms and conditions of the Credit
Agreement and all of the documents executed in connection therewith or referred
to or incorporated therein, remain in full force and effect and are hereby
ratified, confirmed and approved.

         5. Conflicts. If there is an express conflict between the terms of this
First Amendment and the terms of the Credit Agreement, or any of the other
agreements or documents executed in connection therewith or referred to or
incorporated therein, the terms of this First Amendment shall govern and
control.

         IN WITNESS WHEREOF, the parties hereto have caused this First Amendment
to Short Term Revolving Credit Agreement to be duly executed as of the date
first written above.


                                        Ag-Chem Equipment Co., Inc.

                                        By: /s/ John Retherford
                                            -----------------------------------
                                            John Retherford
                                            Its: Senior Vice President


                                        NBD Bank

                                        By: /s/ Marguerite Mullins
                                            -----------------------------------
                                            Marguerite Mullins
                                            Its: Vice President


                                        National City Bank of Minneapolis

                                        By: /s/ David W. Boyce
                                            -----------------------------------
                                            David W. Boyce
                                            Its: Vice President


                                        Harris Trust and Savings Bank

                                        By: /s/ Catherine C. Ciolek
                                            -----------------------------------
                                            Catherine C. Ciolek
                                            Its: Vice President




                            GUARANTOR ACKNOWLEDGEMENT

         The undersigned hereby acknowledges the terms of this First Amendment
to Short Revolving Credit Agreement, dated as of January 1, 1997, and hereby
reaffirm each and every term of their respective Guaranty (Short Term), dated
June 28, 1996, given in favor of the Agent and the Lenders.


                                        Lor*Al Products, Inc.

                                        By: /s/ John Retherford
                                            -----------------------------------
                                            John Retherford
                                            Its: Vice President


                                        Ag-Chem Equipment Co International Corp.

                                        By: /s/ John Retherford
                                            -----------------------------------
                                            John Retherford
                                            Its: Vice President


                                        Ag-Chem Equipment Canada Ltd.

                                        By: /s/ John Retherford
                                            -----------------------------------
                                            John Retherford
                                            Its: Vice President


                                        Soil-Teq, Inc.

                                        By: /s/ John Retherford
                                            -----------------------------------
                                            John Retherford
                                            Its: Vice President