Economics
Deere Raises Sales Forecast Amid Signs of Farm Recovery
- Tractor maker sees full-year net revenues rising about 25%
- Posts surprise first-quarter loss after tax-related writedown
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Deere & Co., the world’s largest farm machine maker, raised its full-year sales forecast, and there’s reason to believe that good news will keep coming.
After a prolonged slump for crop prices that slashed farmer income, fundamentals are starting to rebound, according to Farha Aslam, an analyst at Stephens Inc. There’s a chorus echoing that view. Bunge Ltd. Chief Executive Officer Soren Schroder said this week that there are early signs of a recovery for the markets. An index measuring sentiment in rural agricultural communities rose to the highest since 2014 in February, while a Federal Reserve Bank of Kansas City report showed farmland prices are starting to stabilize.