Despite being profitable, it ain’t easy being green.
By Andrew Joseph, Farms.com; Photo via Deere & Co.
It’s well known that if you take the good, you take the bad; you take them both, and there you have the facts of life. Such is life with John Deere (Deere & Co.) already this July.
Still one of the most visibly iconic brands in the world, the company has had an interesting past couple of weeks.
So… Whaddaya want first—the good news or the bad news?
The Good
We love our green friends, especially when they come up with new technologies for us to drool over.
The company has just released the next generation of its 6M series of mid-sized utility tractors (see photo above). Not just available in two or three versions, the 6M comes in 18 different models featuring five frame sizes and engine options from 95 horsepower up to 250 horsepower.
In other words, there’s a tractor to fit a wide range of ranches and farms. The 6M tractor allows farmers to focus on their work because it is fuel-efficient, configurable for numerous jobs, and easy to operate.
“This tractor is the workhorse for many farms and ranches,” stated Dennis Ogle, Marketing Manager for the John Deere midsize tractor line. “The new 6M tractor is bigger, smarter, faster, and more efficient and customizable, making it the go-to tractor for many farms, including dairy and beef operations.”
The 6M tractor provides numerous ways to configure, giving operators just the right tractor for an operation, but it still has the standard features that make it the workhorse of any farm or ranch.
The 6M tractor has just the right size to perform many tasks on the farm with traditional mechanical transmission options or easy-to-use infinitely variable transmission options. The shortest wheelbase with a sloped hood remains, providing excellent visibility and maneuverability.
All 6M cabs also offer an exceptional view around the tractor, making loader work, mowing, and baling easier to complete. In addition, the 6M tractor still has the high front or rear hitch lift capacity that is important for various jobs.
Another definitive advantage, said Deere, is the service and support of the extensive John Deere dealer network.
“We know farmers and ranchers love simple and reliable tractors to get the important jobs done," Ogle said. "The 6M tractor delivers with a proven history along with more valuable options to cater to each owner's needs."
The Model Year 2025 6M tractor can be customized to provide farmers with the opportunity to have large tractor features on a midsized machine. Customers may select the features that meet the requirements of their operation. With five frame sizes and 18 models, farmers can work with their John Deere dealer to build the tractor that's right for their farm.
Configurations and options include:
- Horsepower and chassis: 18 models with five chassis options and horsepower ranging from 95 to 250 hp;
- Intelligent Power Management: up to 20 hp above a model's rated horsepower in transport and nonstationary PTO applications. This allows the operator to conquer hills when transporting, thick windrows when baling, and more;
- Dual-tire configurations: rear bar axles and dual-tire configurations are now available for ease of wheel spacing or when needing more flotation and traction;
- Infinitely variable transmission: a transmission option available across all models that allows for stepless driving;
- Higher speed with 50K transmission: available across the full portfolio of 6M tractors, this feature helps transport speeds, leading to increased efficiency;
- Cab package options: new options available to increase operator comfort and improve productivity;
- Scalable precision ag technology: more precision ag is available on demand with an updated corner-post display and integrated connectivity.
To learn more about the John Deere 6M tractor, visit www.johndeere.com or contact a local John Deere dealer.
The Bad
On July 1, 2024, Deere & Co. announced it was laying off 590 people nationwide.
At two Iowa-based factories, a combined 310 production employees were being let go, while an additional 280 employees at its Moline, Illinois, home base were being laid off.
Although still making a profit, the company’s layoffs were sparked by a decline in sales for its farm equipment.
Back in May 2024, Deere & Co. reported it had a greater than 15 percent decline during the second quarter—the third straight quarter of year-to-year sales declines. When that report was released, the company stated that it expected the sales decline to continue during the year and that it would have to “take proactive steps to reduce production and inventory.”
These layoffs at the three facilities represent about 14 percent of the approximate 4,000 production and maintenance workers. Globally, Deere & Co. has 80,000+ employees.
The decline in profits is not due to any technological shortcomings but rather an overall economic malaise as farmers are buying fewer new tractors and combines, et al., as crop prices continue to decline.
According to the US Department of Agriculture, although the net farm income for 2024 will come in at around US$116.1 billion, that is down 25.5 percent from 2023, or 27.1 percent when adjusted for inflation.
Impacting future purchasing decisions will be lower expected prices for both corn and soybeans, as well as higher farm production costs and lower direct government payments.
Also, during the COVID-19 pandemic, when government aid was forthcoming, many farms made purchases of new tractors and combines. That was only four years ago. Considering that companies like John Deere make a robust product, how soon is a farm vehicle upgrade required?
Lastly, this past June, Deere said it was moving its skid steer and track loader manufacturing from a plant in Dubuque, Iowa, into what will eventually be a newly constructed factory in Ramos, Mexico, by the end of 2026.