Key insights
- President Trump pressured Deere, Caterpillar, and CNH to lower equipment costs for farmers, causing Deere and CNH shares to decline. While Caterpillar remained relatively unchanged, the event highlights potential government intervention in the agriculture equipment sector, posing a slight negative risk to equipment manufacturers' profitability.
WASHINGTON, March 27 (Reuters) - U.S. President Donald Trump said on Friday that he wanted top agriculture supply brands, including John Deere, Case and Caterpillar, to lower farmers’ tractor and equipment costs.
Deere & Co shares were down 2% after the statement, while Case manufacturer CNH fell 1%. Caterpillar was roughly unchanged.
"I want John Deere and Case and all of - they’re great companies, Caterpillar... I want these companies to give it to you in the form of lower tractor and equipment costs," Trump said at a White House event.
Trump also announced a series of actions aimed at agricultural communities, saying the U.S. Small Business Administration would open up new loan guarantees for farmers and food suppliers.
Trump also announced an update to renewable fuel standards and said he would seek additional relief for farmers from Congress.