PARIS, (Reuters) – Claas, an agricultural machinery maker said that on Thursday it anticipates problems in securing silicon chips for the first six months of next year. This would limit a potential surge in profits related to booming farm market demand.

An upturn in orders from farmers, who are benefiting from high crop prices after several lean years, has boosted earnings for equipment makers like U.S. giant Deere (NYSE:) & Co.

The coronavirus pandemic has seen a spike in raw material costs and disruption to supply chains. There was also a boom in farm machine demand. However, there have been production problems like those experienced by the auto industry due to a shortage of electronic chips.

Claas, a German company based in Germany, stated that although steel prices had reached their peak, there was still a shortage of chips until the latter half 2022.

Claas Chief Executive Thomas Bock told a Paris Press Conference that it was “day and night work” for the supply chain workers. “It will be difficult next six month with suppliers.”

Claas’s procurement efforts, which included some use of air freight and an expanded supply team, allowed him to avoid factory closures, except for occasional one- or two day stoppages on certain lines.

Because it made fewer cars, the farm machine industry was more vulnerable to part shortages than carmakers.

Claas anticipates that its earnings will be lower in 2022 after its pre-tax profit increased more than twice to 357 millions euros during its 2021 financial years to Sept. 30, and Claas’ 2022 financial year.

CEMA’s December monthly survey revealed record order levels and nearly half the companies have plans to halt production in December.

Bock indicated that strong agricultural demand should be sustained by high prices, and European Union reforms of farm subsidies will likely impact farmer investments in Europe.