Three weeks ahead of reporting its 2026 full-year results, John Deere revealed several changes to its manufacturing footprint “designed to strengthen its U.S. manufacturing operations and continue positioning the company for long-term growth,” the ag machinery giant shared in a press release.
John Deere stated it will concentrate manufacturing investments in modern and high-use facilities, which will enable the original equipment manufacturer (OEM) to continue investing throughout the market cycle, the company stated in the news release.
As part of the streamlined operations, John Deere announced the following changes to its production footprint …
- Windrower and round baler production: John Deere will relocate Windrower and round baler production from Ottumwa, Iowa, to its Des Moines, Iowa facility, closing the former plant after the move. Windrower production is projected to come online at the Des Moines facility by the end of fiscal year (FY) 2027, with round balers to follow by the end of FY 2028.
- Sugar cane harvester: John Deere will consolidate its sugar cane harvester production by moving its Thibodaux, Louisiana production to its Catalão, Brazil facility, which will bring production closer to the largest pool of customers for the machinery. The Thibodaux facility produces roughly 35 machines a year, the company stated.
- Hagie STS: The OEM will move Hagie STS sprayer production from Clarion, Iowa to Thibodaux beginning in FY 2028, with plans to shutter the Clarion operations by the end of FY 2029.
- Small planter production will move from Moline, Illinois — where John Deere’s headquarters is located — to Paton, Iowa in FY 2027.
Additionally, John Deere is exploring changes to sourcing for its construction and forestry division, aimed at improving operational flexibility, reducing costs, and increasing investment in key areas, amid shifting market conditions in this segment, the company stated.
What the closures will mean for John Deere’s workforce
John Deere did not provide specific details on what the plant closures will mean for employees and their jobs, but stated it will engage workers, union representatives, and community members to determine the best use for the Clarion and Ottumwa facilities.
Last month, the OEM announced that it was hiring approximately 400 workers across seven facilities – including at the Ottumwa facility – and recalled nearly 1,000 factory employees.
“We are evaluating a range of transition support that may include internal transfer opportunities, retraining, retention or relocation assistance, severance benefits, and career-transition support. Employees will receive direct and timely information about the resources available to them as plans are finalized,” a John Deere spokesperson told AgNavigator.
What the facility re-shuffle means for John Deere’s strategy
Like many OEMs, John Deere responded to challenging market conditions in 2026 — from tariffs to tight farming margins — which dragged sales of large ag machinery down while smaller tractors and equipment fared better.
On August 20, John Deere reported its third-quarter 2026 results, with $3.808 billion in net income for the first nine months of 2026, a 4% decline from the same period in 2025. Deere’s production and precision agriculture business experienced the greatest declines in operating profits, which fell to $527 million in Q3 2026, compared to $706 million in Q2 2026 and $580 million in Q3 2025.
Large OEMs, like John Deere and AGCO, have projected that 2026 will be the bottom of the down-market cycle in ag machinery. In its Q3 results, John Deere’s CEO John May stated, “we continue to believe 2026 will mark the bottom of the current ag equipment cycle.”
John Deere will release its Q4 and full-year 2026 results on Nov. 25, 2026. John Deere’s stock was trading around $674.50, up approximately 1.29% for the day in afternoon trading, the day of the plant closure announcement.
