John Deere Slashes 600 Jobs as Agricultural Economy Struggles Amid Global Challenges

John Deere has announced that it is cutting approximately 600 jobs at its Midwestern factories this week due to a decline in sales, which is also being experienced by its competitors in the industry. The company, well-known for manufacturing tractors and often considered a benchmark for the agricultural economy, has been impacted by various factors such as the war in Ukraine, extreme weather conditions affecting some commodities, and increased demand post-pandemic.

Crop prices have fallen due to these factors, leading to a decrease in sales for companies like John Deere. According to Pat Westhoff, an agricultural economist from the University of Missouri, farmers are experiencing less money to spend this year due to lower crop prices. This decline can be attributed to fluctuations in global grain markets and cyclical commodity cycles that result in 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, contributing 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 crucial 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.