By Jamie Martin
The agriculture sector continues to experience financial pressure as farm equipment companies release weaker forecasts for the coming year. Analysts report that deep uncertainty around tariffs and trade deals is making it difficult to predict when the industry will see a full recovery.
Recent reporting from financial analysts showed that John Deere issued a forecast for 2026 that fell below expectations. The announcement caused its stock to drop, reflecting widespread concern about slowing demand for machinery. Although some trade shipments to key international buyers have resumed, experts say it remains unclear whether increased grain sales will be strong enough to revive the farm economy.
Industry commentary noted that projected earnings for 2026 suggest the downturn in large agricultural equipment may last longer than expected. Leadership within the company acknowledged the challenge, saying the business faced unusual uncertainty this year. They expect 2026 could represent the lowest point for the equipment cycle.
It is not just John Deere, CNH also cut its profit outlook after reducing tractor and combine production to avoid excess inventory. The company reported that farmers are delaying major machinery purchases due to weaker crop prices and rising input costs. Tariffs on steel and aluminum added additional short-term pressure to its operations, though analysts believe companies can adjust through price strategies.
Meanwhile, producers across the Midwest and beyond report serious cash-flow concerns heading into the new year. Many farmers say they are struggling to meet essential financial commitments such as rent payments and input bills. As one producer stated, low market prices “are starting to take a toll” on farm budgets.
As 2025 concludes, farmers and manufacturers alike are preparing for another year shaped by cautious spending, global trade patterns, and shifting economic conditions.
Photo Credit: gettyImages-shaunl
Categories: National