Instead, the company is watching a series of market indicators, including dealer inventories, used machinery stocks, equipment fleet age and the spread between new and used machinery prices. While those indicators are moving in the right direction, CNH believes improved farm profitability will ultimately be required before equipment demand accelerates meaningfully. Dealer inventory reduction remains a priorityA central focus for CNH remains reducing dealer inventories and aligning production with actual retail demand. CNH is targeting a further $400m-$500m reduction in dealer inventory by the end of the year, with most of the progress expected during the fourth quarter. “We feel confident about printing a proposal for next year that should be no less than what we do this year,” Marx said, referring to earnings performance in a scenario where agricultural demand remains broadly flat.