Iowa’s agricultural industry is facing another wave of layoffs. Kinze Manufacturing in Williamsburg announced it will lay off 193 employees, effective Thursday.
“We deeply regret the necessity of this action. This decision was not made lightly, and it is a direct response to current ag market realities,” said Kinze President Susanne Veatch in a statement. She also mentioned that no further reductions are planned at this time.
Kinze Manufacturing, a privately held company established 59 years ago, is known for producing planters and grain carts globally. The company is also famous for its “yard art” along Interstate 80 west of Iowa City, which features a progressively smaller stack of nine-grain wagons topped by a 1/16th-scale cart replica.
Deere has forecasted that sales of large farm equipment will drop by 20 percent to 25 percent this year compared to the previous year due to lower commodity prices, higher interest rates, and market volatility.
Farmers are currently facing higher costs for growing crops like corn and soybeans and for raising livestock while also dealing with lower market prices. This economic environment often leads to delays in equipment purchases.
Other agricultural equipment manufacturers, including Des Moines’ Bridgestone-Firestone tractor tire plant, and food processors such as Tyson and Smithfield, have also announced layoffs.
Kinze employs 815 workers at its Williamsburg headquarters and manufacturing facilities, which cover over 30 acres under one roof, according to the company’s website.
The layoffs come as the USDA projects a 25.5 percent decline in U.S. farm income this year. Last year, agricultural earnings fell 16 percent from a record high in 2022.
Nationally, corn prices have dropped to about half of what they were two years ago, and soybean prices are down approximately 40 percent.
This situation has raised concerns among farmers and economists about whether the current downturn will be short-lived or resemble the six-year agricultural recession that started in 2014, which resulted in 5,670 farm-related job losses in Iowa and forced about 120 farmers into bankruptcy.
Challenges in the agribusiness sector can significantly impact the Iowa economy as a whole. A recent report indicates that 22 percent of Iowa’s economy — or $53.1 billion — is connected to agriculture, encompassing crop and livestock production, food processing, and manufacturing.
»Related: John Deere to lay off over 100 more employees at Moline operations