Farm-Equipment Sales Plunge Most Since 2016 in Trade-War Fallout
- Agricultural machinery purchases drop by $900 million
- Political risk lurks for Trump as cost of trade fight spreads
An attendee passes in front of Deere & Co. John Deere brand tractors displayed during the World Agriculture Expo in Tulare, California, on Feb. 12.
Photographer: Patrick T. Fallon/BloombergPurchases of farm equipment plunged by an annualized $900 million in the first quarter, the sharpest drop in three years, as U.S. producers struggle with falling commodity prices and collateral damage from President Donald Trump’s trade wars.
The Commerce Department cited the drop in agricultural machinery purchases as a contributor to the paltry 0.2 percent quarterly rise in overall business spending on equipment, also the weakest performance since 2016. The softness in the category came despite promises by Trump and Republican leaders that tax breaks for equipment purchases in the party’s signature tax law would boost investment by farmers and manufacturers.