The maker of the green machines has lowered its full year profits forecast for the second time in four months. It now expects just a 4% increase in sales and $3.2bn in net profits for the year. Four months ago, it expected a 5% increase in sales and net profits of $3.3bn. Overall sales of equipment were down 3% compared to the same quarter last year, with the company’s agriculture and turf segment reporting a sales decline of 6%.

Samuel Allen, chairman and chief executive officer, says export-market access, near-term demand for commodities such as soybeans, and overall crop conditions have caused many farmers to postpone major equipment purchases. The fundamentals for US farmers have deteriorated in recent months driven by a strong dollar, a slow start to the planting season and growing supplies from South America.

The US based company blamed the trade war between the US and China for its weaker performance. It is sensitive to steel prices for production costs and also to farmers whose crops exports are facing uncertain demand from China and therefore delaying purchases.

This week, the US Department of Agriculture projected corn production to increase 26m bushels from its July projection, to 13.9bn bushels for the 2019/20 crop year. Shares of Deere fell more than 4% on Monday following the release of USDA’s updated projections, however they have since recovered.