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Trade showdown

Trade war uncertainty hits farm suppliers

Kimberly Adams Aug 16, 2019
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A John Deere tractor sits in the middle of field of freshly cut tobacco leaves in Owings, Maryland. Mark Wilson/Getty Images
Trade showdown

Trade war uncertainty hits farm suppliers

Kimberly Adams Aug 16, 2019
A John Deere tractor sits in the middle of field of freshly cut tobacco leaves in Owings, Maryland. Mark Wilson/Getty Images
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Agricultural equipment maker John Deere missed its quarterly earning expectations, the company announced Friday. Quarterly sales were down 3% , with the company pointing to uncertainty in the agricultural sector as part of the reason for the losses.

Farmers are in the crosshairs of the current trade tensions between the U.S. and China. As they export agricultural produce, they are vulnerable to tariffs and market restrictions. Even the products they use on the farm are becoming more expensive with import tariffs.

Businesses in all sectors are holding back on investments in the uncertain trade environment, but with bad weather and lower global commodity prices, farmers are being particularly cautious about major purchases of things like combines and tractors from companies like John Deere.

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