Regulators sued John Deere on Wednesday – alleging the tractor-maker of ripping off farmers.
According to reports, the 187-year-old company, which is a leading manufacturer of agricultural machinery, has been accused of inflating repair costs by obligating farmers to exclusively utilize its authorized dealer network.
This incident is the most recent in a series of controversies surrounding John Deere over the last year. During a significant portion of 2024, the company faced scrutiny for cutting jobs in the Midwest while simultaneously relocating production to Mexico.
And in July, John Deere made a huge U-turn on its DEI practices – including a Pride event for toddlers – after a backlash by farmers.
The US Federal Trade Commission filed a lawsuit on Wednesday, alleging that John Deere has unlawfully increased its profits by mandating farmers to seek repairs solely through its network of approved dealers.
This makes it difficult for farmers to use independent mechanics or do repairs themselves.
The only software that enables repairs of all Deere equipment is produced by the company, which it only makes available to its dealer network, the FTC said.
As a result Deere has maintained a 100 percent market share, allowing it to hike prices.
Deere did not immediately respond to a request for comment on the FTC’s actions.
John Deere produces a wide range of equipment, including tractors, combine harvesters, construction vehicles, mowers, and snowmobiles. The company is facing backlash for its ongoing plan to lay off more American workers and shift production to Mexico
‘Illegal repair restrictions can be devastating for farmers, who rely on affordable and timely repairs to harvest their crops and earn their income,’ FTC chair Lina Khan said in the release.
The agency suit would see Deere make its repair tools available to equipment owners and independent repair providers, the release said.
The agency’s probe into Deere was made public in October. Illinois and Minnesota joined the agency as plaintiffs in the lawsuit. A copy of the complaint was not immediately available.
In July, John Deere backtracked on its diversity, equity, and inclusion (DEI) policies in the face of opposition and a damaging boycott from farmers and conservatives.
The company said in a statement it would drop ‘socially motivated messaging’ and ‘diversity quotas and pronoun identification’ and distance itself from ‘cultural awareness parades.’
The $61 billion-a-year firm had come under fire over sponsoring a Pride event for children as young as three and other DEI efforts, even as it shuttered plants and sacked American workers.
‘Our customers’ trust and confidence in us are of the utmost importance to everyone at John Deere,’ the company posted on X on at the time.
‘We fully intend to earn it every day and in every way we can.’
Former US President George W. Bush (L) watches welders work on a John Deere combine during a factory tour on January 14, 2002 in Moline in Illinois
John Deere staff work on farming equipment. The company is laying off workers
Meanwhile, furious farmers have threatened to stop buying John Deere tractors over job cuts in the US -at the time time it moves production to Mexico.
The 187-year-old firm – the leading manufacturer of agricultural machinery – said in October that it is laying off even more workers.
The layoffs in Iowa and Illinois take the total in 2024 to around 2,100.
At the same time, Deere is moving more of its tractor and farming gear manufacturing to Mexico.
‘I’ll never buy another John Deere tractor or any other of their products,’ wrote one famer today on Reddit.
Another added: ‘John Deere is loyal to shareholders, NOT employees or even customers. Anything they say otherwise is propaganda.’
Another – referring to rival Massey-Ferguson and its red tractors – wrote: ‘Looks like a lot of color changes will happen the next few years I predict a lot more red in fields.’
John Deere is the market leader in the US by some margin. It means fields across the country are mostly ploughed and harvested machines emblazoned in its distinctive green and yellow.
Massey-Ferguson – a rival to John Deere – is known for its red tractors
The company also sells heavy duty garden gear too.
The 2,100 layoffs are across several Iowa sites – Ankeny, Dubuque, Ottumwa, Urbandale, Waterloo – plus Davenport and East Moline in Illinois, as well as a research center in Urbandale.
In many instances, production that these US workers were responsible for is being shifted to new locations in Mexico.
But the company insists layoffs are unrelated to its production moving to Mexico.
Instead, bosses attributed the job cuts to a decline in demand for tractors and other agricultural equipment, which has resulted from falling crop prices and farmers reducing their expenditures.
Movement of production to Mexico has attracted the attention of politicians.
Donald Trump said in September that he will slap a 200 percent tariff on John Deere’s imports into the US if the company goes ahead with plans to move production to Mexico.
