American vehicle giant Deere & Co notes that farmers are still cautious when it comes to investments. The company, which among other things manufactures tractors, combine harvesters, and forestry machines, and to some extent competes with Volvo construction equipment, estimates that net profit for 2025 will land between 5-5.5 billion dollars. The forecast is lower than market expectations and can be compared to the fiscal year 2024, which has just ended and resulted in a profit of 7 billion dollars.
The company's profit surged strongly in connection with the outbreak of the Ukraine war, as a result of grain prices rising and the agricultural sector getting significantly more room for investments. Another challenge for the company is the threat from Donald Trump of increased trade tariffs, as the company has significant production in Mexico for the American market.
