The first quarter income report from John Deere and Company released Friday showed a drop in net income — but it also held a positive message for the ag industry. Sales were up two percent and spokesman Ken Golden says there are signs of continued improvement.
“U-S farm income is expected to increase slightly in 2017, that’s always good news for people who sell to farmers,” Golden says. “In construction and forestry it’s the overall economy and G-D-P growth, housing starts and several other areas that really are indicators for our construction and forestry business.”
Deere predicts sales will increase four per cent this year.
“In recent years we’ve been talking about decreases it seems like every quarter. So, this is beginning to give us indications we are near the bottom of the agricultural market and are beginning to swing in the right direction,” according to Golden.
Deere in fact had predicted last fall that sales would drop one percent this year, before revising it to the projection of the four percent increase.
(story courtesy of Radio Iowa)