JP Morgan reported negative statistics for the industry, with especially negative trends in Brazil during its Ag OEMs: 2Q24 Earnings Preview webinar on July 11. 

Brazil retail sales of over 100 horsepower tractors are down 26% and shipments are down 40%. Brazil equipment sales are down 20% and volume is also down 20%.  

European sales are down 10% with volume also down 20%. North American sales are down 10%, but the volume is up 15%. This is higher than the average from 2017-2023 and 6% higher than the long term average since 1992.

In North America, over 100 horsepower tractor sales were down in May and June from a slight increase in April. Combine sales were down 5%, but inventories remain high. 

JP Morgan predicts that the Rate of Decline should decrease, though.

The analysts also highlighted some key points from the majorline OEMs, including John Deere. 

John Deere equipment sales for 2024 are expected to be 25% below the peak of last fiscal year, analysts said during the webinar. FY25 equipment is expected to decrease another 8% from the decrease of 19% this year. North American sales are set to decline further while the rate of decline will stagnate in Europe and South America. 

At the time of the presentation, Deere had laid off an additional 395 employees at its Waterloo plant, bringing the total number of workers laid off from that location to nearly 894. On Wednesday July 24, Deere confirmed it had begun reducing its global salaried workforce.  It's reported that at least 15% of Deere's salaried workforce will be affected. Deere attributed the need for the layoffs to a reduction in product demand, increased operation costs and a 20% decline in sales from 2023 to 2024. 

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