(Radio Iowa) – Due to challenging market conditions, Deere and Company is reducing is prediction of profits for its current operating year. Over the past three months, net sales and revenue for Deere products worldwide were down 12 percent. Deere’s chairman and C-E-O points to a decline across the global agricultural sector. Corn and soybean prices are falling, production costs are increasing, and the U-S-D-A predicts farm income in the United States will be down over 25 percent this year.

Deere predicts sales of large farm equipment, like tractors and combines, will be down between 20 and 25 percent for the year. Still, the world’s largest farm equipment maker projects net income for its current fiscal year will be seven BILLION dollars. That’s about half a BILLION below its previous estimate.

Deere’s C-E-O says the company is managing production and inventory levels to adapt to demand. Over three-hundred workers at John Deere’s Waterloo Works were laid off indefinitely at the end of April. Last week, Deere announced 34 workers at one of its plants in Moline, Illinois would be laid off at the end of May.