Deere and Company raised its yearly earnings forecast after quarterly profit topped Wall Street expectations, driven by strong demand for farm and construction equipment. According to Reuters Deere now predicts its net fiscal 2021 income to be somewhere between $5.7 and $5.9 billion, up from the range of $5.3 and $5.7 billion forecast range in May. This is the third boost in the company’s earnings forecast in seven months.

Deere, the world’s biggest farm equipment manufacturer, says higher farm income that followed a recent rise in commodity prices spurred a need to replace aging equipment with new tractors and combines.

“Looking ahead, we expect demand for farm and construction equipment to continue benefiting from favorable fundamentals,” said Deere CEO John May. The demand is booming at the same time dealer inventories are at a record low level because of COVID-disrupted supply chains. That extends the time equipment makers need to fill new orders. Big tractor manufacturers like Deere are already taking orders to get delivered in 2022.

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail

More From PNW Ag Network