John Deere has announced that it is cutting around 600 jobs at its Midwestern factories this week due to a decline in sales. The company, which is well-known for manufacturing tractors and is often considered a benchmark for the agricultural economy, has been hit hard by the slump in global grain markets caused by various factors such as the war in Ukraine, extreme weather conditions affecting some commodities, and increased demand post-pandemic.
Farmers have less money to spend this year as crop prices have fallen. This decrease in sales can be attributed to Pat Westhoff, an agricultural economist from the University of Missouri who explains that various factors have impacted global grain markets and led to a slump in prices. These fluctuations are part of cyclical commodity cycles, with periods of three years of growth followed by three years of decline.
Kristen Owen, an analyst at Oppenheimer, points out that these fluctuations are part of cyclical commodity cycles. Many farmers had already invested in farm equipment during periods of high demand, which has also contributed to the decrease in sales for companies like John Deere. Despite these challenges, Marketplace continues to provide reliable, fact-based information on global events and how they impact individuals. Support from donors is essential in enabling Marketplace to keep delivering valuable journalism that matters to its audience. By donating just $5 a month, you can help sustain Marketplace and ensure that important stories continue to be reported.