(FARGO, ND) — Even as farmer sentiment seems to be improving across the country, the overall ag economy continues to face challenges as major companies are continuing to layoff workers on a regular basis.
Just this year alone, John Deere has laid off more than 2,500 workers across the Midwest as the company cites a downturn in the ag economy. Add to that, another 112 John Deere employees at the company’s Waterloo, IA location were notified this week that they would be placed on an indefinite layoff beginning on January 3rd. That news according to Iowa WARN: https://workforce.iowa.gov/media/1189/download?inline=
A few weeks ago, Deere & Company reported net income for fiscal year 2024 was $7.100 billion, or $25.62 per share, compared with $10.166 billion, or $34.63 per share, in fiscal 2023. Worldwide net sales and revenues decreased 28 percent, to $11.143 billion, for the fourth quarter of fiscal 2024 and decreased 16 percent, to $51.716 billion, for the full year. Net sales were $9.275 billion for the quarter and $44.759 billion for the year, compared with $13.801 billion and $55.565 billion in fiscal 2023, respectively.
Now, Cargill and Tyson Foods are laying off employees and/or closing facilities. Cargill announced this week that it is set to cut around 5% of its staff, close to about 8,000 jobs, as revenues slumped over 30% this year according to Bloomberg. That comes after two record-breaking profit years for the nation’s largest privately held company.
According to a Reuters report, most of the job reductions at Cargill will happen this year. Cargill CEO Brian Sikes said “They will focus on streamlining our organizational structure by removing layers, expanding the scope and responsibilities of our managers, and reducing duplication of work,” Sikes said in the memo. DTN reports that most of the cuts will include about 475 corporate jobs in Minnesota.
Also this week, Tyson Foods announced that it would be closing its facility in Emporia, KS on or about February 2025. That move will mean more than 800 employees will lose their jobs. According to DTN, Tyson announced the anticipated closure in a Worker Adjustment and Retraining Notification Act notice to the state of Kansas. The act requires employers to inform workers in advance of a plant closing or mass layoff.
Senator Roger Marshall (R-KS) commented on the news of Tyson Foods closing its Emporia facility saying in a statement that “The news of Tyson’s closing its plant in Emporia breaks my heart. This facility is one of the largest employers in the region, and its closure will leave hundreds unemployed. This is devastating news for these families and the community, especially at Christmas time. My office has been in contact with leaders from the City of Emporia and we are committed to doing everything possible to help these individuals find good jobs.”
All of these cuts are coming at a time that farmer sentiment is starting to improve. According to the latest Purdue University/CME Group Ag Economy Barometer, farmer sentiment jumped again in November as the Barometer rose 30 points to 145. That’s the highest level of farmer optimism since May 2021. The Future Expectations index saw the largest jump, rising 37 points to 116, while the Current Conditions Index increased 18 points to 113. The November sentiment boost reflects growing optimism about a more favorable regulatory and tax environment for agriculture following the November election.
Optimism about the overall U.S. ag sector also surged as 34 percent of farmers anticipate good times financially in the next 12 months, more than double the October rate.
Farmer Sentiment Following the U.S. Election Reaches Highest Levels Since May 2021