In a groundbreaking move, the Federal Trade Commission (FTC) has filed a lawsuit against John Deere, accusing the agricultural giant of monopolizing repair practices and hindering farmers’ rights to fix their own equipment. This legal action, backed by the states of Illinois and Minnesota, aims to address what FTC Chair Lina M. Khan has described as “unfair corporate tactics.”
“Today’s actions by the FTC are designed to ensure that farmers across America can freely repair their equipment or choose independent repair shops, ultimately reducing costs, avoiding devastating delays, and fostering fair competition,” stated Khan.
Deere’s Alleged Monopoly on Repairs
The lawsuit highlights John Deere’s use of proprietary software and tools that are exclusively available to authorized dealers. This practice, according to the FTC, forces farmers to rely solely on Deere’s network for repairs, driving up costs and creating delays that could jeopardize crop cycles.
“Illegal repair restrictions can be devastating for farmers,” Khan emphasized. “Affordable and timely repairs are critical for harvesting crops and maintaining livelihoods.”
Deere’s defenders, however, argue that these claims are overblown. Andrew Ferguson, an FTC commissioner, criticized the lawsuit as “hasty” and suggested that it lacks sufficient evidence. Ferguson’s dissent underscores the polarized views on the issue.
The Cost of Repair Restrictions
A 2023 survey by the U.S. Public Interest Research Group (PIRG) found that farmers lose an average of $3,348 annually due to repair-related downtime. When extrapolated nationwide, these restrictions cost U.S. farmers over $4 billion each year. The survey also revealed that authorized dealer mechanics charge $58.90 more per hour than independent technicians, further inflating costs.
“Repair restrictions are bleeding farmers dry,” said Rob Larew, President of the National Farmers Union (NFU). “Monopolies should not prevent farmers from fixing their own equipment.”
Deere Responds
John Deere dismissed the FTC’s allegations as “baseless” and “fatally flawed.” In a statement, Denver Caldwell, Deere’s Vice President of Aftermarket and Customer Support, claimed the lawsuit punishes innovation and ignores Deere’s efforts to support customer self-repair.
Deere points to initiatives like the Equipment Mobile app, launched in 2023, and the Customer Service Advisor tool, which provides farmers with limited diagnostic capabilities. However, critics argue these tools are inferior to those available to authorized dealers and fail to meet farmers’ needs.
Farmers Fight Back
For farmers, the right to repair isn’t just a matter of convenience—it’s about survival. Shorter weather windows and labor shortages make timely repairs essential.
“Farmers have been fixing their own equipment since the first wagon wheel,” said Indiana farmer and ag law attorney John Schwarz II. “This fight is about more than repairs; it’s about preserving a way of life.”
The NFU’s 2022 complaint to the FTC accused Deere of leveraging its market dominance to stifle competition in the repair industry. With Deere controlling over 50% of the U.S. market for large tractors and combines, many farmers feel they have no choice but to comply with the company’s practices.
The Bigger Picture
The FTC’s lawsuit is part of a broader push to combat repair restrictions across industries. President Biden’s 2021 executive order urged the FTC to limit manufacturers’ ability to block self-repairs, citing the economic benefits of greater competition. Deere’s case could set a precedent for other sectors, from automotive to electronics.
What’s Next?
As the legal battle unfolds, the stakes couldn’t be higher for America’s farmers. Advocacy groups like PIRG and NFU hope the lawsuit will lead to lasting changes, while Deere prepares to defend its practices in court.
“This isn’t just about John Deere,” said Jamie Crooks, an attorney representing NFU. “It’s about ensuring that farmers have the freedom to repair their tools, protect their livelihoods, and sustain their communities.”
