John Deere Adds 112 More Iowa Layoffs

By Ryan Hanrahan

The Des Moines Register’s Kevin Baskins reported this past week that “the layoffs continue at John Deere as the agricultural and construction equipment giant announced another round Tuesday at its Waterloo Works, the company’s largest plant. The company plans to lay off 112 workers effective Jan. 5, according to the state’s Worker Adjustment and Retraining Notification, or WARN, website.”

“The announcement is the sixth layoff by Deere in Waterloo, a focal point for tractor manufacturing, in 2024. It’s cut a total of 1,075 workers there as farm income projections for 2025 lag, depressing demand for new equipment,” Baskins reported. “…In Iowa alone, John Deere has shed 1,702 jobs in 2024 at its plants and offices in Waterloo, Ankeny, Davenport, Dubuque, Johnston, and Urbandale, according to the WARN site. In addition, the company offered early retirement to 103 workers at its Ottumwa plant in June.”

Agriculture Dive’s Nathan Owens reported that “Deere has aggressively cut production of its tractors as demand for new farm equipment stalls amid a difficult agricultural economy.”

“‘As was recently stated in our fourth quarter earnings report, challenging market conditions continue to result in reduced demand for our equipment,’ a Deere spokesperson said in a statement,” according to Owens’ reporting. “‘To remain globally competitive, we must continue making workforce adjustments as needed to our manufacturing footprint.’”

“With a backdrop of high interest rates, low farm incomes and weak commodity prices, borrowers are postponing large purchases, which has made it challenging for tractor dealers to move their inventory,” Owens reported. “Sales of construction equipment have also decreased as fewer families are buying new homes.”

AgDaily reported that “Deere has faced public criticism over its plans to move some production to Mexico by 2026, despite insisting current layoffs are unrelated to production moves. Some former employees are exploring wrongful termination lawsuits, referencing age discrimination cases.”

Farmer Sentiment Increases Despite Ag Economy Downturn

Despite the ag industry downturn that is contributing to many of the layoffs, Purdue’s Ag Economy Barometer reported that “farmer sentiment jumped again in November, with the Purdue University/CME Group Ag Economy Barometer climbing 30 points to a reading of 145. This marked the highest level of farmer optimism since May 2021, driven by considerable gains in both the Current Conditions and Future Expectations indices.”

“In November’s survey, farmers reported a notably more positive outlook for their operations and the broader agricultural economy,” Purdue reported. “The percentage of producers expecting their farm’s financial performance to improve over the next year climbed to 33%, up from 19% in October. Optimism about the U.S. agricultural sector also surged, with 34% of farmers anticipating good times financially in the next 12 months, more than double October’s 15%.”

“Looking ahead five years, over half of November’s respondents (52%) predicted widespread prosperity for U.S. agriculture, a noticeable increase from 34% the previous month,” Purdue reported. “This growing confidence was also reflected in farmers’ investment plans, as 22% reported that it’s a good time for large capital investments, compared to 15% in October.“

John Deere Adds 112 More Iowa Layoffs was originally published by Farmdoc.