John Deere plans to lay off hundreds of employees across three midwest factories by the end of next month. Around 600 production workers at factories in east Moline, Illinois, and Davenport and Dubuque, Iowa, will be laid off effective August 30th. The layoffs are due to reduced demand for products from those factories. One big reason; farmers are buying less equipment. In May, Deere lowered its full-year profit forecast for the second time as farmers bought fewer tractors and other equipment amid declining crop prices.
The U. S. Department of Agriculture anticipates that 2024 net farm income, a broad measure of profits, will total $116.1 billion. That’s down 25.5% from a year earlier. Adjusting for inflation, net farm income is expected to be down 27.1% this year as farmers contend with lower prices for soybeans and corn. The USDA says that lower direct government payments and increased production costs are also weighing on farmers.
