“Given the environment that I just mentioned, we do expect incremental demand decline in the back half of 2024.”

In context

“ying the demand decline is a tougher backdrop in global ag, which as you mentioned in your opening comments, has continued to weigh on our customer base. Uncertainty has caused a decline in farmer sentiment. And as a result, we are seeing a softer retail environment today than we did just 6 months ago. Primary crop margins globally are forecasted to be down. [ Stock fees ] are expected to be above historical averages, thanks to multiple years of favorable growing conditions and record global yields, used inventories have risen and persistently high interest rates are impacting purchase decisions. Despite all these headwinds, we experienced strong demand in the first half of the year, albeit down from the highs of 2023, which drove solid first half production volumes for ag and turf. Given the environment that I just mentioned, we do expect incremental demand decline in the back half of 2024. Notably, our production volumes will decline more than demand in the back half as we're taking proactive steps to drive down field inventories. This is true for all of our major markets, South America, Europe and also now for North America large tractors. We believe this approach best positions us to build the retail demand for '25. Josh Jepsen: This is Jepsen here. Maybe a couple of things to add. First, I want to commend our employees for the work they've done to drive the overall decrementals for the business despite the velocity of declines we're experiencing this year. We're delivering value for our customers and driving operating margins that are structurally better at this point in the cycle than ever before. However, there's always opportunity to do better, and we'll continue t”