Deere & Company’s latest earnings report signals a slowdown in the future. The company’s stock dropped almost 5 percent after the report.
Deere beat its earnings target for the second quarter. However, the company now projects slower sales the rest of the year. Higher interest rates and lower commodities prices could keep farmers from buying new equipment.
“Borrowing money is just costing more and you’re looking at some of the anticipated struggles that farmers are looking at this year,” said Nate Kreinbrink, of NelsonCorp Wealth Management. “It doesn’t look to be a profitable year, as we’re seeing kind of some tough projections for corn, for soybeans, and then just production costs fuel remaining higher.”
Farming income is expected to slide about 25 percent this year compared to last year.
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