John Deere announces more Midwest layoffs

By Ryan Hanrahan

The Des Moines Register’s Kevin Baskins reported Thursday that “John Deere has announced another round of layoffs in the Quad Cities affecting 287 workers, including 80 in Davenport.”

“The other layoffs, effective Jan. 3, are of 200 workers at the company’s Harvester Works in East Moline, Illinois, and seven at its Seeding and Cylinder operations in Moline, Illinois, the company’s headquarters city,” Baskins reported. “In a company statement KWQC-TV posted on its website, John Deere emphasized the layoffs were not a result of moving production to other facilities but rather due to a sluggish farm economy. Demand for new farm machinery has fallen in the wake of low crop prices and high borrowing costs, forcing dealers to limit their inventory.”

“‘It is important to note these layoffs are due to reduced demand for the products produced at these facilities. They are not related to production moves,’ the company wrote,” according to Baskins’ reporting. “‘As we have repeatedly stated, layoffs this fiscal year are due to the weakening farm economy and a reduction in customer orders for our equipment.’”

“In reaction to the downturn, Deere starting in March has laid off nearly 2,600 operations workers across its network of plants in Ankeny, Dubuque, Ottumwa, Waterloo, and the Quad Cities’ Davenport and East Moline, as well as white-collar workers at its Urbandale research center and in Moline, and at other offices in Johnston and Dubuque,” Baskins reported.

Progressive Farmer’s Dan Miller reported Thursday that “Deere reported net sales and revenue for its third quarter (which ended July 28) were down 17%, or $13.15 billion, compared to $15.8 billion at the end of its third quarter in 2023.”

“Deere’s net income was down 42% during the third quarter of 2024, compared to the same quarter last year. For the first nine months of this year, Deere is reporting that its net income is down 25% compared to the same nine months in 2023,” Miller reported. “All this, Deere reported in July, is the result of a soft ag economy and resulting soft sales. For example, early orders for planters and sprayers are off by double-digit percentages.”

“Deere’s third-quarter results for production and precision agriculture sales were similarly off. Net production and precision ag sales were down 25% from the third quarter of 2023. Deere reported that its ag operating profit was down 35% in the quarter, compared to the third quarter 2023,” Miller reported. “For the year, Deere is projecting net income of $7 billion, down from $10.166 billion in 2023. Deere has scheduled its fourth-quarter earnings call for Nov. 21.”

Ag equipment sales down industry-wide

Successful Farming’s Alex Gray reported earlier this week that “tractor and combine sales were down across the board in September, according to sales numbers from the Association of Equipment Manufacturers (AEM). ‘September’s sales of Ag tractors and combines follows a summer that showed a cyclical slowdown in sales,’ says Curt Blades, senior vice president at AEM. ‘These declines point to the overall softness in the ag economy.‘”

“September continued the downward trend in overall tractor and combine sales, with every month in 2024 falling below the five-year average (2019-2023),” Gray reported.

“Total farm tractor sales for September 2024 were 16,961, down 19.2% from last year with 20,980 sold in September 2023. Year-to-date, AEM reports 167,485 total farm tractors were sold as of September this year, down 13.4% from 193,312 this time last year,” Gray reported. “…Sales for self-propelled combines were down 19.2% in September with 530 sales this year compared to 894 last year. Year to date, AEM reports 4,462 combines have been sold as of September, down 21.5% from 5,686 at the same time last year.”

John Deere announces more Midwest layoffs was originally published by Farmdoc.