Citing a struggling ag economy, the world’s largest manufacturer of farm equipment confirmed that net sales and revenues were down for the third quarter.

The struggles also included the announcement of a layoff at three factories, the company reported, adding it is continuing with long-term plans to upgrade manufacturing facilities in the United States.

Deere and Company, Moline, Illinois, reported net income of $1.289 billion for third quarter that ended July 27, or $4.75 per share, compared with net income of $1.734 billion, or $6.29 per for the third quarter ending July 28, 2024, according to a company release.

For the first nine months of the year, net income attributable to Deere and Company was $3.952 billion, or $14.57 per share, compared with $5.855 billion, or $21.04 per share, for the same period last year, the release stated.

Worldwide net sales and revenues decreased 9%, to $12.018 billion, for the third quarter of 2025 and decreased 18%, to $33.29 billion for nine months, the news release stated. Net sales were $10.357 billion for the quarter and $28.338 billion for nine months, compared to $11.387 billion and $35.484 billion, respectively.

“By proactively managing inventory, we’ve matched production to retail demand, enabling our company and dealers to respond swiftly to market shifts and customer needs,” said John May, chairman and CEO of John Deere, in a news release. “By continuing to address the high levels of used equipment in our industry, we’re building a healthier market for everyone—our customers, our dealers, and our business—even in these challenging times.”

John May is chairman and CEO of John Deere. (Courtesy photo.)

Net income for Deere for fiscal 2025 is forecasted to be between $4.75 billion and $5.25 billion.

The company also announced 238 workers would be laid off at Harvester Works (115) in East Moline, Illinois; Seeding and Cylinder (52) in Moline, Illinois; and a foundry (71) in Waterloo, Iowa.

“The struggling ag economy continues to impact orders for John Deere equipment,” the company said in a media statement regarding the layoffs. “This is a challenging time for many farmers, growers and producers, and directly impacts our business in the near term.” 

Due to decreased demand and lower order volumes, these factories will be implementing workforce reductions in the coming weeks. Affected employees were informed Aug. 15.

Affected employees are eligible to be recalled to their home factory for a period equal to their length of service. Those laid off are automatically placed in seniority order for openings they are qualified to perform at the factory.

Laid-off employees are also eligible to receive monetary benefits as outlined by the company and can retain healthcare benefits subject to company policy.

As the entire ag sector navigates these challenges, John Deere continues to provide customers the high-quality equipment they deserve while strengthening the foundations of U.S. manufacturing, a media statement said.

It plans to keep the U.S. manufacturing footprint strong, viable and competitive and invest nearly $20 billion over the next decade to upgrade and enhancing manufacturing facilities. The statement said that was on top of recent U.S. investments to open new facilities and expand and/or modernize others.

Dave Bergmeier can be reached at 620-227-1822 or [email protected].