Financial Data and Key Metrics Changes - For fiscal year 2025, net sales and revenues decreased by 12% to $45.7 billion, while net sales for equipment operations fell by 13% to $38.9 billion [8] - Net income attributable to Deere & Company was $5 billion, or $18.50 per diluted share [8] - In the fourth quarter, net sales and revenues increased by 11% to $12.4 billion, with net sales for equipment operations rising by 14% to $10.6 billion [8] - Net income attributable to Deere & Company for the fourth quarter decreased to $1.1 billion, or $3.93 per diluted share [8] Business Segment Data and Key Metrics Changes - Production and Precision Ag segment saw net sales of $4.74 billion, up 10% year-over-year, with an operating profit of $604 million and a 12.7% operating margin [9] - Small Ag and Turf segment reported net sales of $2.57 billion, up 7% year-over-year, but operating profit declined to $25 million due to higher costs [10] - Construction and Forestry segment's net sales increased by 27% year-over-year to $3.382 billion, with an operating profit of $348 million and a 10.3% operating margin [13] Market Data and Key Metrics Changes - Industry sales of large equipment in the U.S. and Canada are expected to decline by 15%-20% in fiscal year 2026, while small agriculture and turf demand is estimated to be flat to up 5% [10][11] - In Europe, the industry is projected to be flat to up 5%, with robust dairy sector margins and improving arable cash flows [11] - South America is expected to see flat industry sales, with Brazilian customer demand tempered by high interest rates and strong global crop yields [11] Company Strategy and Development Direction - The company aims to manage inventory carefully and avoid oversupply while focusing on used inventory reduction [37] - Deere is committed to advancing its Smart Industrial journey, emphasizing technology and innovation to enhance customer value [20][23] - The company anticipates growth in small ag and turf, as well as construction and forestry, while entering fiscal year 2026 with lean production in North American large ag [67] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about stabilization in certain segments and geographies, despite challenges in large ag [7][8] - The company highlighted strong crop use and consumption, new trade agreements, and supportive government payments as potential growth drivers [11] - Management acknowledged the resilience of the organization in navigating a challenging market environment while maintaining strong performance levels [20][26] Other Important Information - The company expects full-year net income for fiscal year 2026 to be in the range of $4 billion to $4.75 billion, with an effective tax rate between 25%-27% [17] - Cash flow from equipment operations is projected to be between $4 billion and $5 billion [17] - The company plans to resume normal capital allocation activities in 2026 after pausing buybacks in the fourth quarter of fiscal 2025 [66] Q&A Session Summary Question: How is the company thinking about offsetting the $1.2 billion tariff headwind in 2026? - The company expects to capture back some of the incremental exposure this year and some from 2025, with a plan to continue executing activities to mitigate the impact [73][74] Question: Can you provide insights on the production plans and product mix implications for seasonality? - The company anticipates net sales in production precision ag to be close to the first quarter of 2025, but margins will be significantly lower due to a lean production plan [51]

Agriculture & Technology Intersection - The agriculture industry faces the dual challenge of feeding a growing global population projected to reach 10 billion by 2050, requiring a 56% increase in agricultural output, while also addressing the environmental impact, with the global food and agriculture systems contributing up to 31% of greenhouse gas emissions [4][5][6] - The industry is at a crossroads, needing to combine advancing digital technologies with traditional farming wisdom to address global food system challenges [2][3][4][11] - Digital technologies can empower traditional wisdom by digitalizing farmers' knowledge, decoding ecological mysteries through data analysis, and connecting traditions to markets via digital platforms [11][12][15][16][19] Sustainability & Heritage - Approximately one-third of all food produced globally is wasted annually, highlighting a deep contradiction in the food system and posing a severe challenge to achieving the UN 2030 sustainable development goals [6][7] - Agriculture heritage systems, such as the rice-fish co-culture system in Chinchen Jang province used for 1,200 years, offer sustainable ecological models and biodiversity, but are disappearing as younger generations move to cities [8][10] - The UN Food and Agriculture Organization (FAO) has designated 99 Globally Important Agricultural Heritage Systems (GIAHS) worldwide, with 25 located in China, but these systems are losing successors as young people migrate to urban areas [10] Digital Agriculture Solutions - Digital technology can transform implicit experiences into explicit data models by using sensors, weather stations, drone spectral cameras, and AI algorithms to learn from farmers and create a digital library of ancient agricultural wisdom [14][15] - Data analysis can quantify the benefits of traditional systems, such as the rice-fish co-culture, by measuring fertilizer reduction, soil organic matter content increase, and biodiversity support, enabling optimization and replication of successful ecological farming models [17][18][19] - Blockchain technology can create immutable digital IDs for agricultural products, allowing consumers to trace the origin and cultivation methods, fostering value recognition and supporting sustainable production methods [20] Youth & Future - Youth are key to agricultural transformation, acting as pioneers of change by using AI, big data, and blockchain to optimize farm management, reduce food waste, and enhance supply chain transparency [25] - The World Food Forum (WFF), initiated by the FAO in 2021, empowers youth innovation by fostering a global network of partners and promoting youth action on green agri-heritage [26][27] - The industry is standing on the threshold of a digital agriculture revolution, where choices made will determine the ability to feed 10 billion people while allowing other species to thrive, requiring a combination of cutting-edge technologies and ancient wisdom [29]

Core Viewpoint - The article highlights the ongoing harvest season in Hubei and other regions, emphasizing the high mechanization rates and efforts to ensure efficient grain collection and drying processes. Group 1: Rice Harvesting in Hubei - Hubei is experiencing a rice harvesting season with a mechanization rate exceeding 98% [1] - In Xiangyang's Nanzhang County, 384,000 acres of rice are at the critical harvesting stage, with local agricultural departments mobilizing over 2,000 harvesters and 190 drying machines to minimize losses [3] - The province expects a total purchase of 20 billion jin of medium and late rice this year [5] Group 2: Corn Harvesting in Henan - In Nanyang's Sheqi County, 800,000 acres of corn are being harvested, taking advantage of a brief period of good weather [7] - The agricultural department is coordinating technical support and drying facilities to ensure a seamless operation from harvesting to drying [9] - The efficient mechanization in Sheqi County enhances the overall harvest efficiency and ensures grain is stored properly [11] Group 3: Sunflower Cultivation in Ningxia - In Ningxia's Yongning County, over 6,000 acres of sunflowers are in full bloom, contributing to local income through a crop rotation system [13] - The rotation model of planting wheat in spring and sunflowers in autumn increases land productivity and adds approximately 500 yuan per acre [13] Group 4: Pomegranate Harvesting in Shaanxi - In Xi'an's Lintong District, pomegranates are entering the harvest season, with farmers preparing to send the fruits to markets [15] - The region has established a digital pomegranate smart demonstration garden, utilizing technology for real-time monitoring of various agricultural factors [19] - The digital platform allows for better management of harvest timing, enabling early and late varieties to be harvested at optimal times, thus avoiding price competition [19]