John Deere has announced that it will be cutting approximately 600 jobs at its Midwestern factories this week due to a decline in sales. This decline can be attributed to farmers having less money to spend, as crop prices have fallen, according to Pat Westhoff, an agricultural economist from the University of Missouri. Various factors such as the war in Ukraine, extreme weather conditions affecting some commodities, and increased demand post-pandemic have impacted global grain markets and led to a slump in prices.
Kristen Owen, an analyst at Oppenheimer, points out that these fluctuations are part of cyclical commodity cycles, with periods of three years of growth followed by three years of decline. Many farmers had already invested in farm equipment during periods of high demand, which has also contributed to the decrease in sales for companies like John Deere. Despite these challenges, Marketplace continues to provide reliable, fact-based information on global events and how they impact individuals. Support from donors is essential in enabling Marketplace to keep delivering valuable journalism that matters to its audience. By donating just $5 a month, you can help sustain Marketplace and ensure that important stories continue to be reported.
