SPRINGFIELD, Ill. — Deere & Co. has come under scrutiny from the Federal Trade Commission (FTC), as the agency, alongside the attorneys general of Illinois and Minnesota, filed a federal lawsuit on Wednesday. The lawsuit alleges that the company unfairly compels farmers to seek repairs exclusively through authorized dealers, leading to inflated repair costs—significantly higher than what farmers would incur if they could manage repairs independently or through alternative repair shops.
The lawsuit, lodged in U.S. District Court in Rockford, Illinois, asserts that Deere, which is based in Moline, Illinois, provides repair software solely to its authorized dealers. This restriction prevents equipment owners from exploring more affordable repair options, exacerbating the financial burden, according to the FTC’s claims.
This legal action is part of a larger trend as the FTC intensifies its enforcement measures ahead of the conclusion of President Joe Biden’s administration. In response to the allegations, Deere stated that the lawsuit is built on a “flagrant misrepresentation of the facts and fatally flawed legal theories.”
The FTC further argues that this “unfair steering practice” has contributed to the significant profits that Deere has accrued from its agricultural equipment and parts. Lina M. Khan, the FTC Chairperson, emphasized the need for farmers to have the freedom to repair their machinery or choose their repair shops, which is critical for reducing costs, avoiding inconvenient delays, and fostering a competitive marketplace.
Historically, farmers could either perform DIY repairs on their tractors and combines or take them to nearby service locations. However, as equipment has become more sophisticated due to advances in technology, Deere has restricted access to its proprietary repair tools, which are now available only through its authorized dealers. This practice typically results in reliance on more expensive, brand-name parts rather than cheaper generic alternatives.
The FTC also pointed out that Deere refuses to share information that independent software developers would need to create their own repair tools, a practice that is more common in the automotive and trucking sectors.
Illinois Attorney General Kwame Raoul and Minnesota Attorney General Keith Ellison, both Democrats, have lent their support to the lawsuit. Ellison remarked that Deere has effectively made it nearly impossible for farmers or independent shops to carry out repairs, forcing reliance on authorized dealerships, which often leads to increased expenses and potentially longer wait times for services.
Deere & Co., in its defense, stated that the FTC has overlooked its history of supporting customer self-repair initiatives. The company announced recently that it was expanding its “suite of digital solutions” to empower customers to conduct their own repairs more efficiently.
Vice President Denver Caldwell claimed that Deere was engaged in settlement discussions with the FTC when the lawsuit was filed, noting that the negotiations had revealed a lack of fundamental understanding from the agency regarding the agricultural equipment industry and the company’s practices. Caldwell accused the FTC of relying on incorrect information during its investigation.
Public sentiment has increasingly favored the right to self-repair machinery. Recently enacted legislation in Colorado mandates that manufacturers supply manuals, software, tools, and parts to agricultural producers who wish to undertake repairs independently. Although a similar law was passed in Minnesota, it currently excludes farm equipment. Gary Wertish, president of the Minnesota Farmers Union, has been advocating for the removal of this exemption.
This lawsuit follows a 3-2 vote approval from the FTC, amid a surge in initiatives aimed at ensuring consumer protection and addressing unfair business practices as President-elect Donald Trump prepares for his inauguration. Trump has appointed Andrew Ferguson, one of the agency’s commissioners, as the next chairperson. Ferguson, who opposed the Deere lawsuit along with Commissioner Melissa Holyoak, argued that the case appears to be influenced by partisan motives and was rushed to coincide with the new administration’s arrival.
