GRAND ISLAND, Neb. -- Update: CNH Industrial America LLC tells NBC Nebraska that more employees will be affected by the layoffs than originally announced. Officials tell us that 145 employees will be let go, compared to the previously reported 136 employees reported in February.
CNH Industrial America LLC announced Thursday that it will reduce its manufacturing workforce at its Grand Island facility as the company responds to "market conditions."
Agricultural experts are saying those market conditions are the low prices in corn and soybeans.
"We've seen a major drop in the corn and soybean prices," said Nebraska Farm Bureau president Steve Nelson. "So that affects profitability for producers that grow corn and soybeans. And consequently, those same producers are buying less machinery."
"I think you will see farmers looking at their bottom line and maybe tightening things up a little bit." said Nebraska Department of Agriculture assistant director Bobbie Kriz-Wickham.
"Low commodity prices make it difficult for farmers to continue to make large purchases," said Adams County University of Lincoln Extension professor Dr. Ron Seymour.
NBC Nebraska tried to confirm that dwindling corn prices was the reason for layoffs, but they did not say anything else.
Personnel at the facility were informed Thursday that 136 full-time employees will be impacted by this reduction. This indefinite layoff is expected to begin in May and be completed by July.
"I think obviously the companies are trying to match the production of equipment with the demand of equipment," said Nelson.
Dr. Seymour says the unpredictability of the market makes it difficult to see what changes the market will see in the future.
"When you have a commodity that's dependent on supply and demand, you're going to have some ups and downs in the markets. And that's going to translate into ups and downs into whether people can afford to buy equipment or not," said Dr. Seymour.
Another big layoff happened late last year at the company, which is one of the biggest employers in Grand Island.
In October, CNH-I announced layoffs for almost 240 employees.
Many people are concerned about the well-being of the employees that will lose their jobs.
Steve Nelson, President, Nebraska Farm Bureau
"We hope there's other places or opportunities that those people can find jobs," Nelson said.
"Let's hope that it's not very long, that they'll see an upswing in commodity prices," Dr. Seymour said.