Against a difficult economic backdrop, US farmers are suffering the biggest drop in income for almost two decades due to international competition, particularly from Brazil. However, Hal Lawton, CEO of Tractor Supply, offers a more optimistic outlook for the US hobby farmer segment.

While large farms are being impacted by falling crop prices, Tractor Supply's customers, who own animals and land, tend to take a cautious financial approach. They avoid overspending in good times and drastic cuts in bad. This stability is reflected in the company's financial results, which show positive growth despite inflation and economic challenges.

The company is committed to a strategy of daily low prices, especially for pet products, and has reduced its traditional promotional activities in favour of digital. Its loyalty programme, Neighbors Club, has 34 million members and accounts for 80% of its sales.

Despite questions about its share price, which recently hit an all-time high, Lawton remains confident. He points to the company's long-term growth, underlining Tractor Supply's strength in the market.

Bloomberg TV provided by MT Newswires

Bloomberg videos, provided by MT Newswires