Thanks, Brent.
Let's start with second quarter results for production and precision ag on Slide 4. Net sales of $4.529 billion were up 35% compared to the second quarter last year, primarily due to higher shipment volumes and price realization. Price realization in the quarter was positive by nearly 9 points, while currency translation was positive by 2 points. Operating profit was just over $1 billion, resulting in a 22% operating margin for the segment compared to a 17% margin for the same period last year. The year-over-year increase was driven by price realization and higher shipment volumes and sales mix. These items were partially offset by higher production costs. With respect to price realization, the above-average results for the quarter were primarily driven by a few different factors. The primary driver of price came from significant midyear adjustments made last year and this year for select foreign markets to offset unfavorable currency movements, which resulted in low double-digit price realization for markets outside of North America. North American list prices were up slightly above average and benefited from prices for new product launches during 2020. Lastly, the current low inventory levels across the industry have led to lower overall incentive spending, thus boosting net price realization. We do anticipate net price realization to moderate some in the second half of the year. Shifting focus to small ag and turf on Slide 5. Net sales were up 30%, totaling $3.39 billion in the second quarter.
The increase was driven primarily by higher shipment volumes, price realization and the favorable effects of currency translation. Price realization in the quarter was positive by nearly 6 points, while currency translation was positive by 4 points. For the quarter, operating profit was $648 million, resulting in a 19% operating margin for the segment compared to an 8.7% margin for the same period last year. The year-over-year increase was due to higher shipment volumes and sales mix, price realization and the favorable effects of foreign currency exchange.
These items were partially offset by higher production costs. Before moving on to our industry forecast for regional ag markets, I'd like to first offer some perspective on the current global ag environment beginning on Slide 6. Over the course of the last 9 months, fundamentals for large ag production systems have steadily improved, driving stronger economic results for our customers and enhanced visibility for our equipment order books. Global stocks of grain have tightened significantly this year on account of multiple factors such as increased Chinese grain imports and recovery in ethanol usage and weather-related production losses in South America. For a second consecutive year, we expect grain and oilseed consumption to outpace supply, supporting fundamentals in the next marketing year. While government support is expected to decrease this year, principal crop cash receipts in the U.S. are forecast to increase 30%, with improvements in commodity prices more than offsetting the decline in government aid. In addition to higher cash receipts, U.S. customer sentiment has benefited from better market access over the last few quarters with elevated exports to China. Given the positive environmental backdrop, order activity is up significantly. and all of our large ag order banks are now complete through the end of the fiscal year. For select product lines such as four-wheel drives and 8R tractors, we're now taking orders for fiscal year '22 and have visibility through the first half of the year. Furthermore, we'll open our early order program for planters and sprayers in June, which will yield some additional data points on demand for 2022.
The current market dynamics, coupled with production constraints for the industry, point to a multiyear cycle for ag equipment. Current global inventory levels for both new and used equipment remain at historic lows. While the average age of the North American fleet is at its highest level in 2 decades, even with double-digit growth expected for the industry in '21, shipments of North American large ag equipment remain 40% less on average than the previous cycle. At this point, in 2021, it's clear that demand will carry over into subsequent years due partially to limitation on the industry's production capabilities. Suppliers and logistics providers are currently stretched thin as economies begin recovering from the lows of the pandemic. Furthermore, labor markets are extremely tight, delaying efforts to ramp up. To date, we have experienced frequent disruptions. However, our factory managers and supply management teams have done an extraordinary job, keeping our production schedules mostly intact without yet resorting to material work stoppages. While many of these spot disruptions are on account of various supplies, procurement of semiconductor chips remains a significant risk to our production schedule for the remainder of the year. To date, our suppliers have worked diligently to ensure our products continue their vital role in providing food security and critical infrastructure. And we're cautiously optimistic that they will continue to meet demand and help us ensure continuous service to our customers. In addition to supply constraints, we're also managing through significant inflation for both raw materials and logistics, which will continue to hit us throughout the second half of the year. Lastly, despite progress in the U.S. with respect to the pandemic, COVID remains a challenge as we face disruptions to some of our foreign operations and supply base with India as the most recent example. As we've done since last March, we continue to work through these challenges, ensuring safe working conditions for our employees and continuous support to our customers. Before addressing our industry outlook, I'd like to first offer my gratitude to our employees and dealers, who worked through so many unique circumstances over the last year. We owe our results to the incredible efforts of our frontline employees, who kept our factories running during the pandemic and managed to keep production schedules on time amidst various supply constraints. Similarly, our field employees and dealers keep finding ways to serve our customers and have gone above and beyond during this last year.
Slide 7 shows our industry outlook for ag and turf markets globally. In U.S. and Canada, we expect industry sales of large ag equipment to be up roughly 25% for the year, reflecting improved fundamentals in the ag sector. At this point, we anticipating producing in line with retail demand for the year, keeping inventory levels relatively tight heading into fiscal year '22. Meanwhile, we expect industry sales of small ag and turf equipment in the U.S. and Canada to be up roughly 10%. Similarly, our shipment schedules imply production roughly in line with retail demand for most products.
Moving on to Europe. The industry is forecast to be up roughly 10% as higher commodity prices strengthened business conditions in the arable segment, offsetting some weaknesses in dairy and livestock. Our Mannheim tractor order book extends through the end of the fiscal year, demonstrating continued progress towards executing our regional strategy focused on large and precision ag. In South America, we expect industry sales of tractors and combines to increase about 20%. The combination of higher commodity prices, strong production and a favorable currency environment have boosted profitability of farmers, driving orders through the remainder of the year. Despite limited government-sponsored financing programs, private financing is more widely available this year in supporting continued strength in equipment demand. Industry sales in Asia are forecast to be up slightly, though key markets for Deere such as India are performing slightly better. Moving on to our segment forecast, beginning on Slide 8. For production and precision ag, net sales are forecast to be up between 25% and 30% in fiscal year '21.
The forecast includes a currency tailwind of about 2 points and expectations of nearly 7 points of positive price realization for the full year. For the segment's operating margin, our full year forecast is ranged between 20% and 21%, and contemplates consistent performance across the various geographical regions. Slide 9 shows our forecast for the small ag and turf segment. Net sales in fiscal year '21 are forecast to be up between 20% and 25%. The guidance includes expectations for 3 points of positive price realization and a favorable currency impact of about 3 points. The segment's operating margin is forecast to range between 16.5% and 17.5%. I'll now turn the call back to Brent.