“As a result, we are targeting to finish the year with new inventory in the US roughly unchanged year over year, reflecting our plan to produce in line with retail demand in the region.”

In context

“ica. On the new inventory side, we ended the calendar year with large ag field inventory down 25% year over year and roughly 15% below pre-2020 averages. In fact, we saw our 220 horsepower tractor inventory decline by nearly twice as much as the industry the past year, allowing us, in partnership with our dealers, to continue our focus on reducing used tractor inventory. The industry backdrop remains challenged, and we continue to expect demand declines across all large ag product lines in North America. Our combine early order program closed a couple of weeks ago, and compared to last year's EOP, was down more than our industry guide. Additionally, our rolling tractor order books continue to provide roughly five months of visibility as they're now full late into our fiscal third quarter. As a result, we are targeting to finish the year with new inventory in the US roughly unchanged year over year, reflecting our plan to produce in line with retail demand in the region. Shifting our focus to North American used equipment, we're starting to see early proof points supporting the operational and marketing decisions we've made over the past quarters. Here, high horsepower tractor used inventory peaked in November, and we've since seen two consecutive months of moderate unit declines along with compression in auction to asking price spreads. Notably, we've also seen two consecutive quarters of improvement in the percentage of late model equipment that makes up Deere's used high horsepower tractor population. Deere combine used inventory was up this quarter in line with normal seasonal build, but down over 10% from the recent peak in spring 2024 and is currently sitting at around 60% of the prior cycle peak. While progress has been made, normalizing used inven”