“But ultimately, we don't expect this to translate into immediate order velocity as general uncertainty continues to persist and customers remain cautious across all markets.”

In context

“ext of a trough level outlook for 2025. For starters, the recent rally in commodity prices has been fueled by both cuts in last season's US yield forecast along with dryness in South America. Additionally, the USDA forecast for global ending stocks of corn, soy, and wheat declined over 10% during the quarter as stocks-to-use retreated. This provides some benefit for our customers as they market last year's strong harvest. On the input side, farmers are continuing to see a decline in input costs for the third consecutive year. Further tailwinds this quarter came via $10 billion in additional US support for farmers as you noted. This assistance will offset some of the margin decline farmers saw in 2024, while potentially helping to relieve concerns around macro risk and high interest rates. But ultimately, we don't expect this to translate into immediate order velocity as general uncertainty continues to persist and customers remain cautious across all markets. Josh Beal: Hey. This is Josh Jepsen. So I think the takeaway here is the additional support from government payments will help buffer downside risk to farmers' balance sheets as well as the overall industry outlook following a multiyear decline in both farm net income and industry equipment demand. Josh Jepsen: Yeah. Definitely, Josh. And if we look globally, Brazil is another geography where farmer sentiment continues to improve. Currency movement has been favorable as a weakening real helps improve farm net incomes in the country. This is because commodity sales are primarily US dollar denominated while typically around half of producer costs are in local currency. It's still too early to call a market shift there as we've yet to see the sentiment convert to a meaningful change in order”