(Bloomberg) -- Tractor makers CNH Industrial NV and AGCO Corp. reduced their outlooks for 2024 on declining sales of farm machinery as growers continue to be squeezed by falling crop prices. 

Ample world grain supplies and slumping farmer incomes have been hitting tractor makers as well as seed and fertilizer suppliers. The impact has been particularly acute in Brazil: While the agricultural powerhouse has been harvesting bumper crops, tumbling prices for corn and soybeans are leading to defaults.

AGCO shares slumped as much as 4% in early trading Thursday, while CNH fell as much as 2.3%. 

CNH lowered its earnings forecast for the year to $1.45 to $1.55 a share, from $1.50 to $1.60 previously, even as quarterly earnings topped analyst expectations.

The maker of Case IH and New Holland tractors expects industry volumes to be down 15% this year, compared with previous guidance for a decline of 10% to 15%. “Lower industry demand persisted” in the first quarter, Chief Executive Officer Scott Wine said in a statement Thursday.

The company said sales of crop-harvesting combines in South America fell 40% in the quarter, with that market “continuing the negative trend of the second half of 2023.”

AGCO, meanwhile, also beat estimates in the first quarter. But the maker of Massey Ferguson and Fendt tractors estimated 2024’s sales at about $13.5 billion, down from its guidance in February for net sales of $13.6 billion.

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