Deere & Company said last week production at its Waterloo, Iowa, plant will be cut until at least October. The move comes as the world’s largest maker of farm equipment waits for used inventory levels to decrease at many of its dealerships. Work hours at the Waterloo tractor manufacturing facility will drop 20 percent during Deere’s fourth quarter, compared with a year ago. Cuts will be even deeper at its Harvester Works plant in East Moline, Illinois, where the combine facility expects production hours to be down about 60 percent. A Deere spokesperson attributed the move to low commodity prices, weakening farm income, and elevated used equipment levels.
Overall, agricultural equipment sales are expected to be down 15 to 20 percent this year in the United States and Canada, according to the company.
Source: NAFB News Service