Regulators sued John Deere on Wednesday – alleging the tractor-maker of ripping off farmers.
They say the 187-year-old firm – the leading manufacturer of agricultural machinery – drives up repair costs by forcing farmers to rely on its authorized dealer network.
It is the latest scandal to hit John Deere in the past year. Over most of 2024, it was under fire for axing jobs in the Midwest – at the same time production is being moved to Mexico.
And in July, John Deere made a huge U-turn on its DEI practices – including a Pride event for toddlers – after a backlash by farmers.
Wednesday’s lawsuit by the US Federal Trade Commission argues John Deere has unlawfully boosted its profits by requiring farmers to use its network of authorized dealers for repairs.
This makes it difficult for farmers to use independent mechanics or do repairs themselves.
The only software that enables repairs of all Deere equipment is produced by the company, which it only makes available to its dealer network, the FTC said.
As a result Deere has maintained a 100 percent market share, allowing it to hike prices.
Deere did not immediately respond to a request for comment on the FTC’s actions.