Deere falls as struggling farmers delay machinery rebound

Shares of Deere & Co. tumbled as the world’s biggest farm machinery maker pared its full-year earnings outlook with lower grain prices curbing farmers’ spending.

The builder of the iconic green and yellow machines used to plant and harvest crops estimated 2025 net income between $4.75 billion and $5.25 billion. That’s down from a forecast three months ago for between $4.75 billion and $5.50 billion.

Shares fell as much as 8.1% before the start of normal trading in New York. The stock is up more than 20% this year, reaching an all-time high in May.

“Customers remain cautious amid ongoing uncertainty,” Deere said in a statement Thursday as the company announced third-quarter earnings.

The farm-machinery sector has been expected to bottom out this year, but a bigger-than-expected American corn harvest and lagging demand for crops like soybeans amid President Donald Trump’s trade wars may be shifting that timeline. Sentiment among grain and livestock producers eased earlier this month as crop prices declined.

Deere and other equipment makers have been reducing output as part of efforts to bring down dealer inventory. Companies are also offering new technology that’s helping farmers autonomously work fields.

“By proactively managing inventory, we’ve matched production to retail demand, enabling our company and dealers to respond swiftly to market shifts and customer needs,” Deere Chief Executive Officer John May said in the statement.

“We remain committed to delivering solutions that address our customers’ current needs while also laying the groundwork for future growth,” May added.

Deere’s worldwide net sales fell 18% through the first three quarters. Profits in the small agriculture and turf segment were impacted in part by higher tariffs during the latest quarter. Sales in the biggest segment of production and precision agriculture – which markets to the largest-scale farmers – dropped due to lower shipped volumes as well as unfavorable prices.