The world’s largest farm equipment maker, Deere and Co, says, “Equipment net sales in the United States and Canada decreased 10 percent for the quarter and 8 percent for the year” in a report on this year’s business. In a statement, Deere said weaker conditions in the farm sector globally had crimped its sales. “The slowdown has been most pronounced in the sale of large farm machinery, including many of our most profitable models,” said chief executive Samuel Allen.
Looking ahead, Deere said said “worldwide sales of agriculture and turf equipment are forecast to decrease by about 20 percent for fiscal year 2015 as a result of weaker conditions in the global farm economy. Lower commodity prices and falling farm incomes are putting pressure on demand for agricultural machinery, especially for larger models. Conditions are more positive in the U.S. livestock sector, providing support to the sale of smaller sizes of equipment. Based on these factors, industry sales for agricultural machinery in the U.S. and Canada are forecast to be down 25 to 30 percent for 2015.”