Nov 22 Reuters Farm equipment maker Deere Co forecast 2024 profit below analysts39; expectations on Wednesday as high borrowing costs and squeezed budgets dented demand for its products.

Its shares were down 7.1 in premarket trading.

The world39;s largest farm equipment maker expects 2024 net income between 7.75 billion and 8.25 billion, compared with analysts39; average expectations, according to LSEG data, of 9.33 billion.

While our end markets will fluctuate, we remain focused on disciplined execution, the company39;s Chief Executive, John May said in a statement.

Despite the Illinoisbased manufacturer beating Wall Street profit estimates, Deere39;s stock slump is consistent with peers such as Caterpillar that have outperformed forecasts.

Demand for its large tractors and combines has allowed the company to increase prices to help offset higher raw materials, logistics and freight costs.

However the mounting dealer inventories that the company noted in previous quarters are becoming a red flag to investors, analysts say, leading to speculation demand might have peaked for the manufacturer and other cyclical industrial companies.

Persistent inflation continues to drag on consumer appetite for bigticket items. Experts say weaker consumer sentiment is a sign Americans are being more frugal, including farmers.

Net farm income is forecast to decline 18.2 from a year ago, according to the Agriculture Department.

Sales for production and precision agriculture…