The low grain price environment in the U.S. is expected to continue through 2014 and 2015, on account of record-high corn and soybean production expectations this year. The USDA forecast a 27% decline in U.S. net farm income in 2014 due to the declining crop prices. Deere expects to see weak farm equipment markets in Europe and South America as well due to similar reasons. The company has therefore decided to scale back production of its agricultural equipment in line with the expected demand.