Equipment sales falter as farm income slows, tariffs a concern, say regional Feds
Farm equipment sales are slowing alongside the downturn in farm income, creating a headwind to overall U.S. investment activity, said the Beige Book, a summary of economic conditions in Federal Reserve Bank districts. In discussing agriculture, the St. Louis Fed said some businesses were building inventory in anticipation of potential tariffs on imported goods.
Right-to-repair pact has worrisome tradeoff, says consumer group
Federal and state lawmakers "should move full steam ahead with their right-to-repair bills" this year, said consumer group PIRG, which took a skeptical view of a memorandum of understanding between Deere and Co. and the largest U.S. farm group on equipment repair. In the agreement, the American Farm Bureau Federation says it will urge state affiliates to stay on the sidelines of the right-to-repair debate.
With UAW on strike, Deere says, ‘We’ll keep running’
The world's largest farm equipment maker, Deere and Co., said managers and other salaried employees would keep its factories operating in the face of a strike by 10,000 union workers. "We'll keep running," the company said on Thursday.
Cautious farmers dim Deere’s outlook for 2020
The world's largest farm equipment maker, Deere and Co., expects sales of its agricultural equipment to decline by 5-10 percent globally in the year ahead due to lower demand for big machinery. "Lingering trade tensions coupled with a year of difficult growing and harvesting conditions have caused many farmers to become cautious about making major investments in new equipment," said chief executive John May.
Consolidation could be a factor in Deere profit jump
Analysts predict that John Deere will raise its profit forecasts for the year on Friday, despite a dismal year for crop prices. Bloomberg reports that a possible reason for the company’s rising profits could be the mechanical needs of large, consolidated mega-farms.