While crop receipts are usually a good signpost for farmers’ ability to spend on capital goods like machinery, more often than not, farm net income is the determining factor whether or not growers pull out their checkbooks.
On Feb. 11, USDA issued its initial 2013 estimates for farm net cash income and cash receipts and forecast a drop in net income of nearly 9%. The government economists also said that cash receipts will be slightly higher year-over-year.
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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.