John Deere, the world’s biggest maker of tractors and other farm machinery, said on Wednesday that demand for agricultural equipment would fall by up to 25 per cent this year in emerging economies as farmers find it increasingly difficult to access credit.

The manufacturer said it had been hit in the three months to the end of January by plummeting sales in central and eastern Europe. It said its dealers in those regions were experiencing “high cancellations”, while South American dealers were seeing “higher than typical” cancellation rates.