For the quarter ended July 30, Deere’s reported adjusted earnings per share of $10.20 beat estimates of $8.19. (Deere & Co.)

Deere & Co. lifted its financial outlook for the year as machinery demand from farmers remained robust despite slumping crop prices.

The world’s top agricultural equipment producer expects net income for fiscal 2023 between $9.75 billion and $10 billion, the Moline, Ill.-based company said Aug. 18 in a statement. That’s above its outlook in May for $9.25 billion to $9.5 billion, and it compares to the Bloomberg consensus for about $9.4 billion.

Farmers have been paying up for the iconic green and yellow tractors in the wake of Russia’s invasion of Ukraine, which sent global crop prices surging. While expanding harvests in the U.S., Brazil and Russia are cooling crop markets, and large-scale farmers are continuing to upgrade to newer and more technologically advanced equipment.

For the quarter ended July 30, Deere’s reported adjusted earnings per share of $10.20 beat estimates of $8.19. Shares were little changed in pre-market trading.

“Fundamentals are expected to continue fueling solid demand for our equipment, supported by a strong advance-order position,” CEO John May said in the statement.

Still, slumping grain prices and rising interest rates are clouding the outlook for farm equipment makers. Deere rival CNH Industrial NV last month said it’s limiting how much it’s raising prices for machines with farmer incomes coming down.

Meanwhile, a recent slowdown in the sales of used agricultural equipment is heightening concerns for a “cycle peak” for the sector, according to Bloomberg Intelligence.