John Deere Plans Major U.S. Manufacturing Changes
Deere will shift production of windrowers, round balers, Hagie sprayers and small planters as part of a multi-year manufacturing restructuring.
John Deere is making significant changes to its U.S. manufacturing network, including plans to close two Iowa factories, shift production among several American plants, and consolidate sugar cane harvester manufacturing in Brazil.
The company says the changes are intended to better align manufacturing capacity with customer demand while concentrating investment in modern, heavily utilized U.S. facilities.
For farmers, the moves will change where several familiar pieces of John Deere agricultural equipment are manufactured over the next several years, including windrowers, round balers, Hagie STS sprayers and small planters.
Ottumwa Works to close
One of the biggest changes involves John Deere’s Ottumwa Works in Iowa.
Deere plans to transfer windrower production from Ottumwa to Des Moines Works by the end of fiscal year 2027. Round baler production is expected to follow by the end of fiscal year 2028.
After those transfers are completed, Deere intends to close the Ottumwa factory.
The company attributed the decision to changes in customer demand and the manufacturing capacity available elsewhere within its network.
The move does not mean Deere is ending production of the equipment. Instead, manufacturing will be consolidated at another U.S. Deere facility.
Hagie sprayer production moving to Louisiana
Another Iowa operation will eventually cease manufacturing.
Starting in fiscal year 2028, Deere plans to move production of Hagie STS sprayers from Clarion, Iowa, to its factory in Thibodaux, Louisiana.
Manufacturing operations at the Hagie factory in Clarion are then expected to end by fiscal year 2029.
The Thibodaux facility will therefore gain sprayer production as Deere reorganizes manufacturing capacity across its U.S. operations.
Sugar cane harvester production moving to Brazil
Thibodaux will also see another significant change.
In fiscal year 2029, Deere intends to move sugar cane harvester production from Louisiana to Catalão, Brazil, where the company already manufactures sugar cane harvesters.
Deere said consolidating production in Brazil will place manufacturing closer to the largest concentration of customer demand in South America while allowing the company to produce the machines at a single location.
The Louisiana factory currently produces approximately 35 sugar cane harvesters annually for the U.S. market.
While this represents a transfer of some manufacturing outside the United States, Deere’s broader announcement emphasizes its continued investment in American manufacturing and its strategy of concentrating U.S. production in facilities where the company sees the greatest long-term value.
Small planter production moving to Iowa
John Deere is also changing where some of its planting equipment is manufactured.
In fiscal year 2027, small planter production is scheduled to move from John Deere Seeding in Moline, Illinois, to the company’s facility in Paton, Iowa.
As with the windrower, baler and sprayer changes, production will remain within Deere’s U.S. manufacturing network.
Construction and forestry operations under review
Deere is also evaluating strategic sourcing opportunities within its Construction and Forestry Division.
According to the company, that review is designed to improve competitiveness and flexibility, manage costs, and allow greater investment in areas including product development, technology, field sales and customer support.
Deere characterized the review as part of a broader industry response to changing market conditions, shifts in customer demand and global cost pressures.
The company did not announce specific plant closures or production transfers related to the Construction and Forestry review in the release.
What the changes mean for Deere customers
Despite the multi-year manufacturing transition, Deere says it expects to continue serving customers without disruption.
The company plans to manage the transfers with the goal of maintaining equipment quality, product availability and service.
For farmers, that means the immediate significance of the announcement is primarily where equipment will be manufactured rather than whether the affected product lines will remain available.
The changes will unfold over several years, with the first production transfers planned for fiscal year 2027 and other moves continuing through fiscal year 2029.
Deere says concentrating investments in modern, high-use facilities will help preserve and expand critical U.S. manufacturing capabilities while supporting the company’s competitiveness and its ability to continue investing during changing business cycles.
Iowa communities face plant closures
The biggest local impacts could be felt in Ottumwa and Clarion, Iowa, where Deere intends to eventually end manufacturing operations.
The company acknowledged that the decisions will affect employees and communities.
During the transition, Deere says it will engage with employees, union representatives where applicable, local leaders and community stakeholders.
The company has also committed to identifying what it describes as the best future use for the Ottumwa and Clarion properties.
