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Low farm income drives Deere profits down

Deere & Co had a 43 percent drop in its first-quarter profit and the company expects lower profits the rest of the year.  The weakening farm economy has put a crimp in demand for the machinery that Deere makes, sending its first-quarter net income down to $387 million.

Nearly two-thirds of Deere’s revenue is from farm and turf machinery.  The company says sales of that equipment are expected to fall 23 percent globally this year.

Because of big harvests, farmers have seen a drop in corn prices the last couple of years, leaving them with less money to spend on equipment.

Farm income is expected to continue falling.  The USDA predicts it’ll be down 32 percent this year to $73.6 billion – the lowest since 2009.

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