
The Federal Trade Commission (FTC) on Wednesday, Jan. 15, sued Deere & Co. for monopoly practices it said unfairly drive up farm equipment repair costs and prevent farmers from quickly seeking the repairs they need for planting and harvesting.
Illinois and Minnesota attorneys general also joined with the FTC in the suit filed in U.S. District Court for the Northern District of Illinois against the Moline-based global equipment manufacturer. The lawsuit seeks remedies that include making access to its fully functional Service ADVISOR repair tool and any other repair resources available to owners of Deere large tractors and combines, as well as independent repair providers.
Late Wednesday afternoon, in response to a request for comment, John Deere released a statement which said in part:
“This lawsuit, filed on the eve of a change in administration, ignores the company’s long-standing commitment to customer self-repair and the consistent progress and innovation we have made over time, including the launch of Equipment Mobile in 2023 and the previously announced launch of new capabilities for John Deere Operations Center later this year.
“The complaint is based on flagrant misrepresentations of the facts and fatally flawed legal theories, and it punishes innovation and procompetitive product design. John Deere will vigorously defend itself against this baseless lawsuit.”
The filing also came one day after Deere & Co. announced in a news release that it had taken “another significant step forward in supporting customers’ ability to maintain and repair their machines across the agricultural and construction industries.”
The company said its “the latest addition to Deere’s suite of digital solutions will further empower customers and independent repair technicians by, among other things, enabling them to reprogram Deere-manufactured electronic controllers.”
Current policies costly
In the redacted 37-page complaint filed against Deere – which can be found here – the FTC alleges that for decades the company’s unlawful practices have limited farmers’ and independent repair providers’ ability to repair Deere equipment, forcing farmers to instead rely on Deere’s network of authorized dealers for necessary repairs.
That practice has boosted Deere’s multi-billion-dollar profits on agricultural equipment and parts, growing its repair parts business while burdening farmers with higher repair costs, the agency alleges.
“Illegal repair restrictions can be devastating for farmers, who rely on affordable and timely repairs to harvest their crops and earn their income,” outgoing Biden administration FTC Chair Lina M. Khan said Wednesday in the release. “The FTC’s action today seeks to ensure that farmers across America are free to repair their own equipment or use repair shops of their choice — lowering costs, preventing ruinous delays, and promoting fair competition for independent repair shops.”
Ms. Khan is expected to be replaced as chair by Commissioner Andrew Ferguson after President-elect Donald Trump takes office on Monday, Jan. 20.
The board voted 3-2 to go ahead with the lawsuit. Mr. Ferguson and fellow Commissioner Melissa Holyoak voted against filing the suit and joined Mr. Ferguson’s dissent.
While the dissenters said they were pleased that the FTC is “taking up the cause of the farmer,” they were concerned that the decision to sue came as the FTC and Deere were actively negotiating a settlement.
Deere agreed in its statement, saying “Consistent with Deere’s announced plans for the launch of additional self-repair capabilities …. and at commission staff’s invitation to enter settlement discussions, the parties were engaged in active negotiations over a potential resolution to the investigation when the FTC filed the lawsuit.” Deere also said as recently as last week it was receiving questions from the FTC.
Suit’s timing questioned
Regarding the suit’s timing, Mr. Ferguson wrote, “today’s action appears to be one taken in haste to beat President Trump into office, and lends to the suit the stench of partisan motivation.”
Deere Vice President of Aftermarket and Customer Support Denver Caldwell reacted similarly in Wednesday’s statement. “It is extremely disappointing that three commissioners of the FTC chose to file a meritless lawsuit on the eve of the transition to a new administration,” he said.
“Our recent discussions with the commission have revealed that the agency still lacked basic information about the industry and John Deere’s business practices and confirmed that the agency was instead relying on inaccurate information and assumptions,” he said.
The FTC release offered as its reason for filing suit: “Durable, reliable, and easily repairable agricultural equipment is critical to American farmers. Yet, Deere, which maintains a dominant market share position across the large agricultural equipment market, has made it difficult for farmers to repair their own equipment or turn to local, independent repair providers.”
Due to the increasing computerization of Deere’s equipment, the agency added, farmers must now rely on Deere’s interactive software tool that Deere makes available only to its authorized dealers.
“An inferior repair tool exists, called Customer Service ADVISOR, but it is incapable of doing all repairs on Deere agriculture equipment,” the commission said, adding Deere has failed to provide repair tool developers outside its network with the information they need to develop a fully functional repair tool.
As a result of limited distribution of those tools, Deere has been able to control and limit who can repair its agricultural equipment, allowing the company to maintain a 100% market share and charge higher prices at its network of authorized dealers, according to the FTC.
Restrictions hurt farmers
“Deere’s restrictions deprive farmers of the use of their own repair labor, deny them access to their preferred repair service providers, prevent them from more reliably planting, spraying, or harvesting crops on a schedule that would allow them to maximize yield, and force them to spend more on repair and parts,” the FTC said.
In its Jan. 14 news release, however, Deere said “For decades, John Deere has empowered customers to take control of their repair and maintenance needs, from publishing operator, diagnostic, and technical manuals, to selling parts over the counter to customers and independent repair shops to developing digital tools like Customer Service ADVISOR.”
Those new capabilities will be integrated into the John Deere Operations Center and will offer more comprehensive solutions for diagnosing and repairing equipment while ensuring machine reliability, safety, and compliance.
“For years, John Deere has invested in enhanced solutions and is excited to take the next step as we continue to gather feedback from customers through the development process to complete our pilot,” Deere said. “The customer and independent repair technician pilot will set the stage for launch in the U.S. and Canada by the second half of 2025.”