Farm equipment stocks fall on regulatory probe and falling crop prices

Investing.com -- Major farm equipment manufacturers were set to close the week lower as the sector faced a dual blow from a federal regulatory inquiry and worsening crop market conditions.

Deere & Co. (NYSE: DE) fell 4% Friday, extending its weekly decline to down 9%. AGCO Corporation (NYSE: AGCO) and CNH Industrial (NYSE: CNH) also tumbled Friday, falling 5%.

Selling pressure mounted after the U.S. Department of Agriculture (USDA) raised its yield and production forecasts for corn, sending corn futures plunging. Soybean futures also declined following a similar upward revision to production estimates. Sharply lower crop prices directly erode farm incomes, curtailing demand for capital-intensive machinery like tractors and harvesters.

The sector had already taken a hit earlier this week when the USDA and the Federal Trade Commission (FTC) announced a joint inquiry into business practices across the agricultural equipment market, specifically targeting potential anticompetitive conduct.

Deere shares are now on track for their worst weekly performance since August 2024 as regulatory scrutiny and falling commodity prices continue to weigh heavily on investor sentiment.

Original Article

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