John Deere is restructuring its United States manufacturing footprint through a multi-year plan that will close two Iowa factories in Ottumwa and Clarion, shift several production lines across state lines, and move sugar cane harvester manufacturing to Brazil.
The agriculture equipment manufacturer announced the operational changes, pointing to shifts in customer demand and available manufacturing capacities as the driving forces behind the consolidation. The sweeping restructuring will affect facilities in Iowa, Illinois, Louisiana, and South America over the next several years.
Ottumwa and Clarion Factory Closures Scheduled
The largest footprint reductions will take place in Iowa. John Deere’s Ottumwa Works facility is slated for closure following a phased transfer of its assembly lines. Windrower production will move from Ottumwa to the Des Moines Works location by the end of fiscal year 2027. Round baler production will follow, relocating to Ankeny by the end of fiscal year 2028, at which point the Ottumwa factory will close entirely, according to the company’s restructuring details.
In Clarion, Iowa, manufacturing operations at the Hagie factory will wind down by fiscal year 2029. Production of Hagie STS sprayers will begin moving to Deere’s factory in Thibodaux, Louisiana, starting in fiscal year 2028.
Production Shifts in Moline, Paton, and Thibodaux
Additional assembly lines will move across the Midwest and internationally. Small planter production will transfer from the John Deere Seeding plant in Moline, Illinois, to the company’s facility in Paton, Iowa, during fiscal year 2027. Union representatives note that approximately 700 people work at the Ottumwa plant, while company spokespeople anticipate no impact to the number of positions at the Seeding operation in Moline.
Sugar cane harvester production currently handled in Thibodaux, Louisiana—amounting to roughly 35 machines annually for the U.S. market—will move to Catalão, Brazil, in fiscal year 2029. Deere stated that the consolidation places manufacturing closer to South American customer demand.
Division Evaluates Strategic Sourcing Opportunities to Manage Costs
Alongside plant closures and product line transfers, John Deere’s Construction and Forestry Division is evaluating strategic sourcing opportunities across its operations, including the Dubuque Works facility. The review aims to manage costs, increase operational flexibility, and free up capital for product development, technology, field sales, and customer support.
Company officials stated that the multi-year manufacturing changes are steps designed to strengthen its U.S. manufacturing operations and continue positioning the company for long-term growth.
Deere reported a net income of $1.3 billion for the third quarter ended August 2, up from $1.2 billion the previous year, with net sales and revenues rising 5 percent.