“Finally, combines will complete the second of three early order program phases next week, and when this program closes at the end of January, we expect the product line to be down in a range similar to the reduction we've seen in sprayers.”

In context

“re more than double Deere's ratios for both 100 horsepower and above tractors and combines. Despite our proactive inventory management, macro factors continue to be a headwind for equipment demand in 2025, resulting in subdued early order program results. As a reminder, during our last earnings call in August, we were partway through the early order programs for sprayers and planters in North America, and our combine early order program had just begun. As an update, our sprayer program concluded down from 2024, declining in line with our industry guide for North American large ag, and setting 2025 production levels for sprayers below mid-cycle. Planters, on the other hand, experienced a more significant decline, closing with a year-over-year reduction greater than what we saw in sprayers. Finally, combines will complete the second of three early order program phases next week, and when this program closes at the end of January, we expect the product line to be down in a range similar to the reduction we've seen in sprayers. North American tractors are managed on a rolling order basis, with row crop tractor order books full through the middle of the second quarter. Demand for row crop tractors in 2025 is expected to be down less than the overall industry forecast, with Deere shipments decreasing even less as production levels rebound to align with retail demand following our high single-digit underproduction for row crop tractors in 2024. Conversely, demand for four-wheel-drive tractors in 2025 is expected to decline year-over-year more than the industry guide, but as a reminder, that product line actually saw increased demand in 2024. It's worth noting here that our order books for our newest tractor, the high horsepower 9RX, which we introduced last February at Commodity Classic, are currently full through”