The U.S. Federal Trade Commission (FTC) filed a lawsuit against Deere & Co. on Wednesday, alleging the agricultural machinery giant illegally inflates repair costs for farmers. The FTC claims Deere forces farmers to use its authorized dealer network for repairs, hindering independent repairs and driving up prices.
This legal action aligns with the Biden administration’s broader efforts to address anti-competitive practices within the agricultural sector. These initiatives range from improving conditions for poultry farmers in their dealings with meat processors to fostering greater competition in the seed industry. The right-to-repair movement, impacting sectors from electronics to agriculture, is also a key focus.
FTC Chair Lina Khan emphasized the significant financial impact of repair restrictions on farmers, stating that “Illegal repair restrictions can be devastating for farmers, who rely on affordable and timely repairs to harvest their crops and earn their income.” Timely repairs are crucial for farmers to maintain their planting and harvesting schedules and ensure their livelihood.
The core of the FTC’s argument centers on Deere’s exclusive control over repair software. According to the FTC, Deere is the sole provider of the software necessary for comprehensive equipment repairs. This software is exclusively available to Deere’s authorized dealer network, effectively granting Deere a 100% market share and enabling the company to inflate prices.
While Deere recently announced a pilot program expanding self-repair options for farmers, the FTC’s complaint, filed in the U.S. District Court for the Northern District of Illinois, highlights the detrimental effects of reliance on authorized dealers. The complaint underscores how dependence on authorized service can lead to significant delays, disrupting critical planting and harvesting timelines. The states of Illinois and Minnesota have joined the FTC as plaintiffs in this lawsuit.
The FTC seeks to compel Deere to make its repair tools accessible to both equipment owners and independent repair providers. This action follows an FTC investigation into Deere that was initially disclosed in October. This lawsuit aims to ensure farmers have greater control over equipment repairs, fostering a more competitive market and reducing financial burdens on agricultural producers. A Deere spokesperson indicated the company had not yet received formal notification from the FTC regarding the lawsuit.
