Crop Traders and Ag Equipment Manufacturers Hit Hard by Biofuel Policy Uncertainty and Trade Tensions
Major crop trading companies and agricultural equipment manufacturers are reporting multi-year lows in second-quarter profits, driven by persistent uncertainty around U.S. biofuel policy and intensifying global trade tensions. The financial pressure is being felt across the ag sector, with companies like ADM, Bunge, Cargill, AGCO Corporation, and CNH Industrial all signaling reduced earnings and cost challenges heading into the second half of 2025.
According to a Reuters report, ADM posted its lowest second-quarter profit in five years, citing slowed sales and reduced crop processing margins caused by trade volatility and unclear federal biofuel policies. The company also announced that adjusted earnings for the full year could decline to around $4 per share, marking the lowest annual earnings forecast since 2020.
“ADM posted its lowest second-quarter profit in five years as trade challenges and uncertain biofuel policies slowed sales and hurt trading and crop processing margins.”
ADM isn’t alone. Bunge and Cargill also reported weakening margins and profit erosion due to ample global crop supplies and reduced trading profits. Bloomberg reported adjusted earnings for these firms averaging $1.31 per share for Q2 2025, the lowest levels since 2018.
Meanwhile, the ripple effect is also hitting agricultural equipment manufacturers. Both AGCO Corporation and CNH Industrial have warned that the continued rise in tariffs and trade restrictions will increase equipment prices in the second half of 2025. These price hikes will ultimately be passed on to farmers, many of whom are already struggling with tight margins and volatile commodity prices.
“AGCO Corporation and CNH Industrial also say customers will soon feel the impact of tariffs due to higher prices.”
The overall outlook remains uncertain as biofuel policy debates drag on in Washington and trade tensions with key agricultural partners, including China and the EU, show no signs of easing. The pressure on crop traders and equipment suppliers signals broader risks to the U.S. agricultural economy, especially as commodity prices stay soft and input costs remain elevated.