Like A Weed, Downturn Sinks Roots Into U.S. Farms

[Purveyor]

By James B. Kelleher - Analysis

CHICAGO (Reuters) - The downturn that has spent the past year-and-a-half rattling through the global economy appears to have finally rolled into the farm sector, which had seemed largely insulated from the crisis.

In recent weeks, a series of worrisome trends, including a spike in delinquencies on loans tied to farm equipment as well as layoffs and a restructuring at Deere & Co (DE.N), have suggested farmers -- and the companies that supply them -- are feeling the pinch.

The signs come as Deere, the world's largest maker of tractors and harvesters, and rivals Agco Corp (AG.N) and CNH Global NV (CNH.N) enter their key selling season and prepare to report quarterly earnings.

The four months between March 1 and June 30 account for more than 40 percent of all big tractor sales, according to the Association of Equipment Manufacturers. The key selling season for harvesters is later in the year with nearly half of all units sold between July 1 and October 31, AEM data shows.

So far, the signs are not encouraging. Row crop tractor sales fell 7 percent year over year in March, according to the most recent report from AEM, while four-wheel-drive tractor sales fell 14 percent.

"The stresses are indeed growing," said John Urbanchuk, an economist and agriculture expert at the consulting firm LECG.

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REUTERS: http://www.reuters.com/article/reutersEdge/idUSTRE53E79720090415

[The Straight Story]

1. You forgot to mention Boyle in the headline

:rofl: