(Reuters) - Deere & Co ( DE ) reported a lower first-quarter profit on Thursday, as more farmers switched to renting tractors and other equipment due to weak incomes and high borrowing rates.

Farm income has dropped 23% from 2022 in one of the biggest declines in history, according to the USDA. High borrowing costs amid the Federal Reserve's cautious pace of interest-rate cuts, and persistent inflation have prompted dealers to scale back inventory restocking.

Meanwhile, President Donald Trump's latest tariff announcements have further increased uncertainty regarding the impact on U.S. farmers. Soybeans, corn, wheat, and meat are particularly vulnerable to retaliatory tariffs from China, Canada, and Mexico.

The company in November predicted about 30% decline in industrywide sales of large agricultural equipment in the U.S. and Canada in 2025.

It reiterated its full-year profit forecast to be in the range of $5 billion to $5.5 billion.

The world's largest farm-equipment maker reported a net income of $869 million, or $3.19 per share, compared with $1.75 billion, or $6.23 per share, a year earlier.

First-quarter worldwide net sales and revenue decreased 30% to $8.51 billion.

(Reporting by Shivansh Tiwary in Bengaluru; Editing by Sriraj Kalluvila)