John Deere as corporate punching bag
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What are these people supposed to make when they go to their jobs, since no one is buying any equipment?
JD increased prices a great deal in the past ten years in a profitable farming environment. For example, the 8R 310 tractor they sell today for $425,000 specs out virtually the same as the 8295R they sold in 2014 for $211,000. Even taking inflation into effect, they've increased the price of essentially the same product by $180,000 freaking dollars in ten years.
Good for them, they got it while they could. But they can't do that anymore and the current state of farm income (down 16% last year and projected down another 24% in 2024) means the earliest they can hope for a substantial turnaround to start moving units is probably the end of 2025 at the earliest.
It isn't just them, all companies are dealing with the same issues. I just saw an auction settlement where a Fendt IDEAL combine with only 300 hours of in-field use in the past five years sell for $140k coming off of lease when the original sale in 2019 was probably approaching half a million dollars.
It's a bloodbath out here in the ag iron world and there is no turnaround in sight. But of course the former cabinet secretary has no clue what he's even looking at, much less what he's talking about.
They force the dealers to floor plan it. I know several Red dealers that folded up because they had a row of combines they were forced to take in a down cycle.
Most corporations have issues. Just a matter if they’ve stepped out of line with the prevailing thoughts as to whether media chooses to highlight it or not.
A very large Iowa JD dealership group's owners would like to sell out but can't. There is no one out there that can purchase their inventory and other fixed assets across multiple locations with what they already owe on their line of credit. I'm not sure JD would even let them if there were someone.
JD used to have a rule that your dealerships needed to be congruent. So you couldn’t leap frog one dealer to buy a different one. That limited the buyers. Seems they have allowed that rule to be bent some.
On stock buy backs...
UAW Rips 'Corporate Greed' of John Deere as Mass Layoffs Follow $43 Billion in Stock Buybacks
UAW Rips 'Corporate Greed' of John Deere as Mass Layoffs Follow $43 Billion in Stock Buybacks | Common Dreams
The United Auto Workers on Tuesday condemned the manufacturing company John Deere over recent mass layoffs at factories in Iowa and Illinois.
www.commondreams.org
FWIW
www.kcrg.com
193 laid off from Kinze in Williamsburg
Kinze Manufacturing, Inc. has notified 193 workers that they are being laid off from the company’s operation in Williamsburg.
brutal for those small communities with limited employment opportunitiesFWIW
193 laid off from Kinze in Williamsburg
Kinze Manufacturing, Inc. has notified 193 workers that they are being laid off from the company’s operation in Williamsburg.
FWIW
193 laid off from Kinze in Williamsburg
Kinze Manufacturing, Inc. has notified 193 workers that they are being laid off from the company’s operation in Williamsburg.
I know a large Kinze dealer and they sold like 5-6 grain carts last fall and had ordered 21. They only ordered one for this year.
You can follow all Iowa layoffs here:
workforce.iowa.gov
Visualization: WARN Notifications Issued in Iowa
This page serves as a log of all WARN notifications issued in Iowa, viewed in a data visualization.
Nope.
Profits Without Prosperity
Reprint: R1409B Though corporate profits are high, and the stock market is booming, most Americans are not sharing in the economic recovery. While the top 0.1% of income recipients reap almost all the income gains, good jobs keep disappearing, and new ones tend to be insecure and underpaid. One...
So we are going to play that game, the top 10% own 93% of all the stock wealth in the country. That is the investment class, the rest of us are just trying to make a little extra dough and most are using it for a retirement vehicle. When you get a quarterly dividend check in the 10's of thousands and not a few hundred bucks you are in the investment class.
The rich own nearly all stocks. Here's one way to level the playing field. • NC Newsline
providing all American children with baby bonds could help lessen inequality and more fairly distribute the ownership of stocks
ncnewsline.com
Only 61% of people own stock in the country and for a many of those will only see a benefit from that at retirement.
It's sad that half of this country will immediately label all of these people let go from John Deere as lazy.
JD and any other manufacturer makes phenomenal wealth when the customer base is in a buy mode and the good times roll. Agriculture is cyclical with highs and lows and we are in a low now. Nothing new here. It makes no sense for JD to keep the production lines going at the same pace when there is no demand. The Dealers certainly don’t want unwanted inventory gathering dust on their lots. The fair thing would be to distribute more of the profits made during good times in severance pay to those workers who were producing the products that enriched the executives and investors. I don’t expect that to happen without government intervention, unfortunately.
Pretty sure every local media covers every larger corporation when they file warn notices.
Nike and Intel are always in the news here when they hire and fire.
So we are going to play that game, the top 10% own 93% of all the stock wealth in the country. That is the investment class, the rest of us are just trying to make a little extra dough and most are using it for a retirement vehicle. When you get a quarterly dividend check in the 10's of thousands and not a few hundred bucks you are in the investment class.
The rich own nearly all stocks. Here's one way to level the playing field. • NC Newsline
providing all American children with baby bonds could help lessen inequality and more fairly distribute the ownership of stocks
Just checked....nope, I'm not in the top 10%.
Damn.
So we are going to play that game, the top 10% own 93% of all the stock wealth in the country. That is the investment class, the rest of us are just trying to make a little extra dough and most are using it for a retirement vehicle. When you get a quarterly dividend check in the 10's of thousands and not a few hundred bucks you are in the investment class.
The rich own nearly all stocks. Here's one way to level the playing field. • NC Newsline
providing all American children with baby bonds could help lessen inequality and more fairly distribute the ownership of stocks
I am a big fan of baby bonds. It's a delayed and slow impact on society as a whole, but its relatively cheap and (imho) creates empowerment instead of dependency.
~$1M net worth puts you in the top 10%. ($970k actually, according to Kiplingers - that might be 2022 data)
I am sure that seems like a lot to the youngsters here, but also 100% certain there are quite a few older CF'ers here that would meet that criteria, whether it's 401k, farmground, or whatever.
