Agricultural equipment manufacturers are taking a cautious outlook as lower crop prices and tight farm margins dampen new machinery demand.
John Deere executives said recent earnings reflect softer equipment sales, particularly for large tractors and combines, citing reduced farmer purchasing power.
USDA forecasts show net farm income declining from recent highs, largely due to weaker commodity prices.
Dealers across the Midwest are carrying higher inventories as farmers delay upgrades.
Analysts said elevated interest rates have also discouraged capital spending. Manufacturers are increasingly focusing on precision agriculture and aftermarket services as alternative revenue streams.
Industry observers say equipment demand could rebound if commodity prices recover, but near-term uncertainty is prompting conservative outlooks across the sector.
