Several of the biggest agricultural companies in America are feeling a pinch to their bottom lines.
Reuters says Archer-Daniels-Midland posted its lowest fourth-quarter profits in six years, thanks to weak oilseed crush margins and uncertainty over U.S. biofuel policy. ADM, based in Chicago, says it’s going to cut costs by $500 million to $750 million during the next three to five years, including cutting 700 jobs to weather the downturn in the market. Bunge Global missed industry expectations for fourth-quarter profits after a global glut in crop prices took a hit on the grain traders’ margins. The agribusiness segment represents over 80 percent of the company’s revenue and saw its adjusted core earnings decline to $364 million in the fourth quarter from $639 million a year earlier. It’s also a tough go for machinery manufacturers as CNH Industrial forecast its full-year profit below Wall Street estimates because of low demand in 2025.
(From the National Association of Farm Broadcasters)