Tractor Makers CNH and AGCO Trim Outlooks on Weak Farmer Demand
An AGCO Corp. Challenger tractor pulls an air seeder.
Photographer: Shannon VanRaes/BloombergThis article is for subscribers only.
Tractor makers CNH Industrial NV and AGCO Corp. reduced their outlooks for 2024 on declining sales of farm machinery as growers continue to be squeezed by falling crop prices.
Ample world grain supplies and slumping farmer incomes have been hitting tractor makers as well as seed and fertilizer suppliers. The impact has been particularly acute in Brazil: While the agricultural powerhouse has been harvesting bumper crops, tumbling prices for corn and soybeans are leading to defaults.