Farmers Slow Down Tractor Purchases With Steel Prices Soaring
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AGCO Corp., one of the world’s biggest manufacturers of agriculture equipment, warned investors Thursday that the massive rise in steel prices is finally hitting the wallets of farmers.
Steel is hard to come by because of supply chain disruptions, and AGCO has seen its costs increase by 150% in North America alone. The exorbitant rise has forced manufacturers to hike prices for everything from tractors to grain storage bins, AGCO Chief Executive Eric Hansotia said on a call with analysts. And there’s been some demand destruction.