Iowa economics expert weighs in on state of agri-business amid John Deere layoffs

MOLINE, Illinois (WQAD) – John Deere has laid off more than 1,000 employees across the country over the past three months, including hundreds in Iowa.

Deere said the layoffs are an effort to balance its workforce amid a drop in demand for its products.

The USDA predicts farm income will fall around 27 percent, while crop and animal products are expected to generate about $21 billion less than average.

Meanwhile, John Deere reports a 12 percent drop in revenue.

Peter Orazem, an economics professor at Iowa State University, said rising interest rates and with low commodity prices are contributing to disappointing sales.

“Input prices are catching up, and the commodity prices have fallen, and so the farmers getting hit by both of those two factors at once,” Orazem explained.

John Deere executives predict the company will bring in $7 billion in revenue this year.

Copyright 2024 WQAD. All rights reserved.