Deere reaffirms commitment in realignment announcement
John Deere, based in Moline, Illinois, announced steps designed to strengthen its United States manufacturing operations and continue positioning the company for long-term growth.
The changes reaffirm Deere’s commitment to U.S. manufacturing by aligning production capacity with regional customer demand and advanced manufacturing capabilities, the company said in a news release. By concentrating investments in modern, high-use facilities, Deere intends to preserve and expand critical U.S. manufacturing capabilities, enhance competitiveness, support American manufacturing jobs and maintain its ability to invest through business cycles while continuing to serve customers well into the future.
As markets, technologies and customer expectations evolve, John Deere continually evaluates its manufacturing footprint to ensure it is well positioned to serve customers and compete globally. That work includes streamlining operations, expanding capacity where it creates the most value, advancing automation and modern manufacturing technologies and leveraging strategic sourcing to improve flexibility and cost competitiveness, the news release said.
As part of this ongoing effort to optimize its manufacturing footprint, improve operational efficiency and support continued investment in its U.S. operations, John Deere is implementing the following manufacturing changes:
- Windrowers and round balers: Due to changes in customer demand and available manufacturing capacity, windrower production will relocate from Ottumwa Works to Des Moines Works by the end of fiscal year 2027, with round baler production planned to follow by the end of fiscal year 2028. Upon completion of the transition, Deere intends to close its factory in Ottumwa.
- STS sprayers: Beginning in fiscal year 2028, production of Hagie STS sprayers will move to Deere’s factory in Thibodaux, Louisiana. As a result, Deere intends to end manufacturing operations at the Hagie factory in Clarion, Iowa, by fiscal year 2029.
- Sugar cane harvesters: In fiscal year 2029, sugar cane harvester production will move from Thibodaux, Louisiana, and be consolidated in Catalão, Brazil, where Deere already manufactures sugar cane harvesters. The move aligns production closer to the largest concentration of customer demand in South America and improves efficiency by consolidating production in a single location. The Thibodaux facility produces about 35 machines annually for the U.S. market.
- Small planters: In fiscal year 2027, small planter production will move from John Deere Seeding in Moline, Illinois, to John Deere’s facility in Paton, Iowa.
- Construction and forestry: John Deere’s Construction and Forestry Division is evaluating strategic sourcing opportunities across its operations to strengthen competitiveness, increase flexibility, manage costs and increase investment in critical capabilities, including product development, technology, field sales and customer support. This evaluation reflects broader industry efforts to respond to shifting market conditions, evolving customer demand and global cost pressures.
Customer, employee and community impact
John Deere expects to continue serving customers without disruption throughout these changes. The company will manage the transitions with the goal of maintaining product quality, availability and service.
At the same time, John Deere recognizes the impact these decisions will have on employees and communities, it said in its news release. Throughout the transition, the company will engage with employees, union representatives where applicable, local leaders and community stakeholders and is committed to identifying the best future use for the Ottumwa and Clarion sites.
