The 2023 farm income forecasts are solid and will continue to support equipment demand,” said Rachel Bach, Deere’s manager of investor communications. Sales of Deere’s farm machinery rose 26% during the quarter, and profit more than doubled, lifted by higher prices on equipment and increased production volumes, the company said.
Tightening supplies of corn and wheat have driven up prices, pushing U.S. net farm income to its highest mark in decades. Global stocks of grain have shrunk due to unfavorable weather in some parts of the world, and by Russia’s war in Ukraine, disrupting one of the world’s top grain-exporting regions. Farmers are expected to increase planting this year to take advantage of high grain prices, and to offset their higher costs for seed, fertilizer, fuel and other production expenses.