Businesses that supply the agricultural industry are having profitability issues caused by an international glut of food crops. First Archer Daniels Midland and now ag chemical supplier Bayer are missing Wall Street analysts' predictions. Equipment manufacturer John Deere is laying off workers in Iowa and Illinois. According to the USDA there were 1.89 million farms in the US in 2023, 7% less than the 2.04 million in 2017. At the same time forecast farm income will drop by 27%, about $43 billion.
Evidently, present climate trends are a factor in increases in world crop yields and subsequent problems for farmers and agricultural equipment makers. While larger crops and lower prices might be bad for the production end it should ease pressure on consumers. Unfortunately, rampant inflation continues.
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