Core Insights - Deere & Company is experiencing ongoing challenges in its equipment operations, with nine consecutive quarters of volume declines, particularly in the Agricultural & Turf segment due to weak farmer demand influenced by commodity prices, high input costs, and elevated interest rates [1][9]. Agricultural Market Projections - The U.S. Department of Agriculture projects net farm income to reach $179.8 billion in 2025, a 40.7% increase from the previous year, largely driven by a $30.4 billion rise in direct government farm payments [2][9]. - Crop receipts are expected to decline by 2.5% due to lower revenues from soybeans, corn, and wheat, although this will be partially offset by an 11.2% increase in animal and animal products receipts [3]. Equipment Market Outlook - Deere anticipates a challenging industry outlook for fiscal 2025, with a projected 30% decline in the large agriculture equipment market in the U.S. and Canada, and a 10% decline in the small agriculture and turf equipment market [4][5]. - The Production & Precision AG segment is expected to see a volume decline of 15-20%, while the Small AG & Turf segment is projected to decline by 11% [5][6]. Competitor Performance - Industry peers such as AGCO Corporation and CNH Industrial are also facing difficulties, with AGCO experiencing six consecutive quarters of negative organic growth and expecting a decline in sales volumes for both large and small agricultural equipment [7][8]. Financial Performance and Estimates - Deere's shares have increased by 11.4% this year, slightly outperforming the industry average of 10.9% [8]. - The Zacks Consensus Estimate indicates a year-over-year earnings decline of 27.5% for fiscal 2025, with revenues expected to drop by 14.5% [12].