News

Grassley on ag manufacturing layoffs amid economic downturn

U.S. Senator Chuck Grassley says it’s too soon to predict the impacts of an anticipated multi-year downturn in the ag economy.

During a call with reporters Tuesday, Brownfield asked the Iowa Republican about a connection between lower commodity prices and recent layoffs in the ag manufacturing sector.

“I think it’s too early to answer your question very specifically. I don’t know about all the companies, and of course I’m not inside on John Deere, but I think they learned a big lesson in the 1980’s because they kept manufacturing and manufacturing as prices fell.”

He tells Brownfield that hurt Deere’s bottom line, and now margins are thinning for many farmers.

“When you’re losing $50 or $60-an acre, farmers aren’t going to have the money to spend on new machinery like they did. And I’m obviously concerned about Iowa workers who are losing their jobs, and I have to monitor that situation every day.”

John Deere, AGCO, and CNH have all announced layoffs in recent weeks.