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(Bloomberg) — Anger from European farmers is adding pressure to tractor makers, which are already facing recession in the U.S. and Brazil as crop prices fall.
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Farmers across the European Union are blocking roads to protest everything from new regulations and cuts to diesel subsidies to massive supplies from Russia-invaded Ukraine.
“The negative sentiment in Europe will only impact demand,” Scott Wine, CEO of CNH Industrial NV, one of the world’s largest agricultural machinery manufacturers, said in an interview Wednesday.
Read more: Farmers’ revolt threatens election-year chaos around the world
He added that there are broad levels of support for farmers and that regulators may reconsider policies that make farming more sustainable but more costly.
“Farmers have expressed dissatisfaction with some of the government’s measures,” he said at the company’s fourth quarter results conference. “When they’re driving or protesting, they’re not planting or harvesting rice.”
CNH, which makes New Holland and Case IH tractors, said agricultural sales will be down 10 to 15 percent this year as lower grain prices cause producers to cut spending. Wein said the company will focus more on North America given the uncertain outlook in Europe. Last year, CNH moved to delist Euronext Milan’s shares.
The company’s stock rose as much as 7.8% in New York on Wednesday on expectations that profits will remain strong despite the weak farm economy, the biggest intraday gain since June 2020.
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