John Deere is making some changes to its U.S. manufacturing operations, which will result in the future closures of two of its Iowa plants.
The company said that due to changes in customer demand, and available manufacturing capacities, 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, Iowa.
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.
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In fiscal year 2029, sugar cane harvester production will move from Thibodaux, Louisiana, and be consolidated in Catalão, Brazil, where Deere already manufacturers sugar cane harvesters. The company said 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. Today, Thibodaux produces around 35 machines annually for the U.S. market.
In fiscal year 2027, small planter production will move from John Deere Seeding in Moline, Illinois, to John Deere’s facility in Paton, Iowa.
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.
Deere said it expects to continue serving customers without disruption throughout the changes. It said it will also engage with employees, union representatives where applicable, local leaders and community stakeholders, and that it remains "committed to identifying the best future use for the Ottumwa and Clarion sites."
"These changes are designed to further strengthen the long-term competitiveness of John Deere’s manufacturing network and allow Deere to continue investing in American factories, advanced technologies, and its workforce—helping preserve U.S. manufacturing jobs while creating opportunities for future growth and innovation," the company said in a statement.
The planned closures come after Deere in September announced plans to bring more than 375 employees back to work across its Quad Cities factory operations. The company has now brought back or hired more than 800 employees across Iowa and Illinois since January.
Deere's decision to restructure its manufacturing operations likely stems from weaker equipment sales. U.S. sales of agricultural tractors decreased 16.4% in September 2026 compared to the year before, according to recent data from the Association of Equipment Manufacturers (AEM).
