“For example, our guide contemplates planned shutdowns of our 8 Series tractor production line in Waterloo, Iowa for about 50% of the total production days in the quarter, which will have a material impact on our decremental margins.”

In context

“lining double digits over the past quarter, outpacing the industry. We expect further reductions to occur during the fourth quarter, which is in line with historical trends. And while we expect our inventory to sales ratios, which remain below industry levels to end the year at roughly the same level as last year, this reflects a material decrease in the absolute number of industry. In fact, to put this into perspective, on an absolute basis, we are forecasting to end the year with less than 1 row crop tractor per dealer. Josh Beal: If I might jump in and quickly add some color to Luke's comment on rest of the year reductions in North America. The underproduction of large tractors we highlighted last quarter will be a significant driver of the implied margin decline in our fourth quarter. For example, our guide contemplates planned shutdowns of our 8 Series tractor production line in Waterloo, Iowa for about 50% of the total production days in the quarter, which will have a material impact on our decremental margins. It's important to note here that these are shutdown days rather than line rate shifts as we work to implement our planned under production for fiscal 2024 as efficiently as possible while remaining agile enough to respond to any future demand changes next year. Josh Rohleder: That's a great point to highlight, Josh. And in fact, we're taking that approach at other factories around the world. For example, our 6 Series tractors in Monheim, Germany are also planning a similar shutdown for roughly 1/3 of their fourth quarter production days, which will have an impact on small Ag margins as well. But to shift back to inventory levels, Luke, can you walk us through the use side. Luke Gakstatter : Certainly. On the used inventory side, we've seen total units increase across all product lines yea”