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Deere report reflects slowing ag economy

The slowdown in the farm economy is reflected in the latest financial report from John Deere.

Deere forecasts its worldwide sales of agriculture and turf equipment will decrease by about 20 percent for fiscal-year 2015 as a result of weaker conditions in the global farm economy. Deere says lower commodity prices and falling farm incomes are putting pressure on demand for agricultural machinery, especially for larger models.

The company notes that conditions are more positive in the U.S. livestock sector, providing support to the sale of smaller sizes of equipment.

Deere says industry sales for agricultural machinery in the U.S. and Canada are forecast to be down 25 to 30 percent for 2015.

The company expects revenue from construction and forestry equipment to keep improving.

Photo courtesy deere.com