As a result of its recent financial struggles, John Deere has announced that it is cutting approximately 600 jobs at its Midwest factories this week. The company, known for its tractors and other agricultural equipment, has experienced a sales slump this year similar to its competitors in the industry.
John Deere’s struggles have been attributed to a number of factors, including decreased crop prices and high demand following the pandemic. According to an agricultural economist at the University of Missouri, farmers have less money to spend on equipment due to the decrease in prices. The economist also noted that global production increases since then resulted in prices returning to levels seen before the spike.
Kristen Owen, an analyst at Oppenheimer, predicts that commodity cycles typically follow a pattern of three years of growth followed by three years of decline. Many farmers had already purchased necessary farm equipment during the prosperous times, which may have contributed to the current downturn.
The impact of these economic issues is far-reaching and affects not only John Deere but also other companies in the agricultural industry. Financial support from donors helps Marketplace continue delivering quality journalism on important topics such as this one. Whether by donating $5 per month or another amount, supporting Marketplace allows our team to keep sharing news that matters to listeners around the world.