In a May 29 interview with CNBC’s Jim Cramer, Martin Richenhagen, AGCO’s CEO,
president and chairman, said the ag equipment manufacturer’s focus is to increase margins to 8%
in 2019 and 10% in 2020 and not necessarily on what’s happening in the world right now.
Escalating trade tensions between the U.S. and China is providing South American producers with opportunities to grow their market share in soybeans and other grains. This could lay the groundwork for increased farm equipment sales starting in 2019. In its most recent outlook, John Deere said it expects an improvement of up to 5% in South American machine sales in the year ahead.
U.S. Agriculture Secretary Sonny Perdue told a group of reporters on Monday that China will probably again start buying American soybeans around Jan. 1.
Deere & Co. CEO and Chairman Samuel Allen says he’s worried about the lasting impact a trade war could have on U.S. producers, particularly soybean growers.
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In this episode of On the Record, brought to you by Associated Equipment Distributors, Deere Director of Investor Relations Josh Beal told JP Morgan analysts that the OEM is confident it will be “producing to demand” in fiscal year 2025.