Bloomberg reported that Deere & Co. Chief Economist J.B. Penn predicts that economic recoveries in both China and India will increase crop prices in the following 18 months. Along with economic gains in those countries, Penn expects that improvements in both the United States and Brazil should help farmers get more money for the products they produce.
"As the global economy recovers, we can see demand pick up again," Penn said in the report from Bloomberg.
Penn said he did not expect inflation would increase due to the predicted jump in grain prices.
Recently the farm equipment manufacturer's chief executive officer was reported as saying that he does not expect recovery in the industry until 2010. CEO Samuel Allen said that the company has not seen improvements in its construction and forestry divisions, which are heavily dependent on home construction.
Furthermore, John Deere & Co. reported that its equipment sales are down by 21 percent in 2009.
