Deere faces lawsuit from FTC for excessive equipment repair charges for farmers

The Federal Trade Commission has sued agricultural equipment giant Deere & Company, arguing it holds a monopoly on repair services that raises costs and creates delays for farmers, the agency announced Wednesday.

The lawsuit alleges Deere has for decades hindered customers’ ability to repair their equipment, including tractors and combines, forcing them to rely on the company’s network of authorized repair providers. A Deere software tool called “Service ADVISOR,” which is only available to more expensive authorized dealers, is necessary to fully fix equipment, leaving farmers and independent repair providers unable to do it themselves, the FTC alleged.

The FTC said authorized dealers often use Deere-branded parts instead of less expensive generic ones for repair jobs, adding to Deere’s profits.

“Illegal repair restrictions can be devastating for farmers, who rely on affordable and timely repairs to harvest their crops and earn their income,” said FTC Chair Lina Khan in a news release. “The FTC’s action today seeks to ensure that farmers across America are free to repair their own equipment or use repair shops of their choice—lowering costs, preventing ruinous delays, and promoting fair competition for independent repair shops.”

The states of Illinois and Minnesota are also plaintiffs in the lawsuit.

The lawsuit seeks to make Service ADVISOR and other necessary repair resources available to Deere customers and independent repair providers. Other manufacturing companies in the trucking and auto industries provide the required information for generic repair tool developers, the FTC said.

In a statement, Denver Caldwell, Deere’s vice president of aftermarket and customer support, said it is “extremely disappointing that three Commissioners of the FTC chose to file a meritless lawsuit on the eve of the transition to a new Administration.”

“Our recent discussions with the Commission have revealed that the agency still lacked basic information about the industry and John Deere’s business practices and confirmed that the agency was instead relying on inaccurate information and assumptions,” Caldwell added.

The company said it “has introduced a number of new innovations, tools, and resources to equip customers and independent repair technicians with the maintenance and repair needs of our equipment.”

Deere shares fell less than 1% on Wednesday afternoon.

The lawsuit comes in the final days of President Joe Biden’s term in the White House and Khan’s tenure at the FTC, during which the agency has taken an aggressive approach to antitrust. It is unclear if President-elect Donald Trump’s administration will continue to pursue the suit against Deere.