New York (CNN Business) The US trade war with China continues to hurt the American heartland.

Tractor maker Deere, based in Moline, Illinois, reported earnings that missed forecasts Friday and lowered its outlook. Although the company reported a 5% jump in overall sales thanks to healthy demand for its construction and forestry equipment, Deere cited "persistent uncertainty in agricultural markets" as a problem.

"Ongoing concerns about export-market access, near-term demand for commodities such as soybeans, and a delayed planting season in much of North America are causing farmers to become much more cautious about making major purchases," Deere CEO Samuel Allen said in a statement.

Deere DE stock fell nearly 8% Friday on the news. The stock is now down about 10% this year.

It's no secret that the escalating trade tension between the US and China is bad news for Deere and US farmers.

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