On a Friday morning call with analysts, Josh Jepsen, director of investor relations, said in response to market dynamics Deere is reducing production in its agriculture business to levels below retail sales. Production will be lower at some of its large North American plants for the remainder of the year.

He said the changes are mostly affecting the production of large agriculture equipment, with its major plants shipping around 20% less than the previous year.

Locally, Deere manufactures large agriculture equipment, such as combines and tractors, at its factories in East Moline and Waterloo.

Deere spokesman Ken Golden said the company is not specifying where production cuts are being made, only that it plans to under-produce market demand in the second half of the year.

"Production changes can be accomplished without changing the size of the workforce," Golden said in an email. "We have not announced any change in workforce."

Deere lowered its earnings outlook to $3.3 billion for the year, down from the previous forecast of around $3.6 billion. It also lowered its expectation for revenue to increase 7%, now anticipating 5% growth.