(Reuters) -Deere & Co cut its 2024 profit forecast on Thursday as farmers remained hesitant about big-ticket farm equipment purchases due to high borrowing rates and falling crop prices.
Net farm income in the U.S. is expected to witness its largest decline since 2006, as it is set to fall 27% to $116 billion, from its inflation-adjusted total in 2023, according to data from the U.S. Department of Agriculture.
With farmers reassessing their expenses, particularly for compact tractors, the world’s largest farm equipment maker said it now expects net income for fiscal 2024 in the range of $7.50 billion to $7.75 billion.
This is compared with its prior forecast of $7.75 billion to $8.25 billion.
Deere’s net income fell to $1.75 billion, or $6.23 per share, for the quarter through December, from $1.96 billion, or $6.55 per share, a year earlier.
Total net sales and revenue fell 3.7% to $12.19 billion
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Shounak Dasgupta and Arun Koyyur)
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