John Deere Cuts Jobs in Midwest Amid Agricultural Industry Slump: Crop Prices, Weather, and More

John Deere, a well-known manufacturer of tractors and other farm equipment, has announced that it will be cutting approximately 600 jobs at its factories in the Midwest this week. The company has experienced a sales slump this year, much like its competitors in the industry. As one of the largest manufacturers of agricultural equipment, John Deere is often considered a barometer for the health of the farming industry.

According to Pat Westhoff, an agricultural economist at the University of Missouri, there are several factors contributing to the downturn in the agricultural economy. One major issue is the decrease in crop prices, which has left farmers with less money to spend on their operations. While different crops have had their own unique challenges this year, Westhoff notes that there are common themes affecting the industry as a whole. These include issues such as extreme weather conditions, high demand following the pandemic, and tensions with Ukraine that have affected global commodity markets.

Westhoff explains that while commodity prices have been volatile over the past few years, they tend to follow a predictable pattern: three years of growth followed by three years of decline. This means that many farmers may have already purchased necessary equipment during more prosperous times before prices dropped so dramatically. Kristen Owen, an analyst at Oppenheimer, notes that while commodity cycles can be unpredictable, they often follow this general pattern.

Despite these challenges in the agricultural economy, John Deere remains committed to delivering quality products and services to its customers around the world. Financial support from donors enables Marketplace to continue providing important news coverage and analysis on topics related to agriculture and beyond. Whether you’re interested in supporting sustainable farming practices or simply staying informed about current events in your community and beyond