Steel Markets
February 25, 2020
John Deere Sees Improvement on Horizon for Ag Equipment
Written by Sandy Williams
Heavy equipment manufacturer John Deere sees early signs of improvement in the U.S. agriculture sector, following the passage of USMCA and the Phase 1 trade agreement with China.
“U.S. farm cash receipts are expected to increase in 2020, aided in part by the recently announced third tranche of market facilitation payments, which totaled $3.6 billion, further enhancing farmer liquidity,” said Brent Norwood, manager of Investor Communications. “While market access certainly has improved sentiment, farmers will likely remain cautious until ag exports to China begin to flow. Given the seasonality for soybean demand, exports to China are unlikely to increase significantly until harvest season.”
