Deere drops 5.0% as FTC and USDA launch farm machinery probe

Deere & Company shares tumbled 5.0% on Wednesday following a joint announcement from the Federal Trade Commission and the U.S. Department of Agriculture. The two federal regulators launched a broad inquiry into whether agricultural machinery manufacturers and distributors use market power to unfairly squeeze farmers.

The sell-off extended to rivals across the sector. Shares of CNH Industrial dropped 5.7%, while AGCO Corporation declined 5.9%.

According to the USDA, an increasing number of farmers across the United States have reported steep barriers to purchasing machinery or accessing repair services for their tractors. Regulators are asking the public, including farmers, independent mechanics, and dealership workers, to submit evidence regarding restrictive dealer contracts, hidden financial penalties, and retaliation against those attempting to bypass official dealership networks.

The probe follows a major FTC settlement with Deere, backed by five state attorneys general, which established the right for farmers to repair their own machinery rather than relying solely on authorized dealers. The agencies stated that findings gathered in the coming months will guide potential future regulatory rules and enforcement actions.