As U.S. farmers grapple with weak commodity prices and economic uncertainty, the ripple effect has reached John Deere. The agricultural equipment giant is experiencing a sharp downturn in sales and earnings, driving layoffs and prompting marked dissatisfaction among its core customers.
Tariffs, Oversupply, and Cautious Buyers
Elevated metal tariffs are slashing Deere’s profits by hundreds of millions, while lowered crop commodity prices have made capital investments, like tractors, harder to justify. Farmers, facing tighter margins, are delaying or canceling equipment purchases, leaving dealers and manufacturers with excess inventory.
Cost Cuts and Layoffs
In response, John Deere has enacted workforce reductions, laying off over 200 employees across multiple Midwestern plants, including facilities in Illinois and Iowa. Simultaneously, the company has revised its earnings guidance downward, signaling lower net income and revenue forecasts.
Farmers’ Frustration Surfaces
Amid these headwinds, farmer sentiment has turned distinctly sour. The combination of rising machinery prices, added tariff burdens and supply chain headaches have left customers feeling overlooked. Some have echoed sentiments of growing distrust and resentment toward the company’s pricing and repair restrictions.
Structural Missteps: Repair Restrictions
Adding to frustrations is Deere’s controversial position on equipment repairs. By limiting access to necessary software and tools, the company has forced farmers into its authorized dealer network, often at higher costs.
This practice has drawn regulatory scrutiny, including an ongoing lawsuit from the Federal Trade Commission over alleged anti-competitive conduct in the "right-to-repair" space.
Farmers are navigating a perfect storm of economic pressure, diminishing returns and frustration toward the very machinery they rely on. As Deere grapples with slowing demand, the on-farm dissatisfaction signals that how the company responds – not just financially, but also ethically – could determine its recovery.
