Over the long-term, favorable tailwinds hold great promise for our company.
For starters, the world’s population is growing steadily. By 2050, about 9.7 billion people will be living on our planet versus about 7.3 billion in 2016. What’s more, many people will be moving into the middle class. They will be enjoying more prosperous lifestyles and diets that include more grain-intensive foods such as protein. That means more demand for farm commodities – a lot more, in fact. It is estimated that agricultural output will need to nearly double over the first half of the century to meet projected demand for food, feed, fuel and fiber.
Society is becoming more mobile, too, and increasingly rooted in urban areas. By 2050, nearly 70% of the world’s population is expected to be living in cities. That will result in a smaller labor pool in rural areas and more need for mechanized farming. A larger urban population also leads to a bigger requirement for housing, roads, bridges, and other infrastructure investments.
All this supports our belief that John Deere will benefit from a rising need for productive farm, turf, construction and forestry equipment in the years ahead.