John Deere announced plans on November 4 to reorganize portions of its manufacturing network, including production relocations, two planned Iowa factory closures, and a strategic sourcing review within its Construction and Forestry Division.
The company said the changes are intended to align production capacity with regional customer demand, improve operational efficiency, and support continued investment in U.S. manufacturing. Deere is also evaluating its manufacturing footprint as markets, technologies, and customer expectations evolve.
Within its Construction and Forestry Division, Deere is evaluating strategic sourcing opportunities across its operations to strengthen competitiveness, increase flexibility, and manage costs. The company said the review is also intended to support investment in product development, technology, field sales, and customer support. Deere did not provide details about specific sourcing changes.
Other announced production changes include relocating windrower manufacturing from Ottumwa Works in Iowa to Des Moines Works by the end of fiscal year 2027. Round baler production is planned to follow by the end of fiscal year 2028. Deere intends to close its Ottumwa factory after those transitions.
Production of Hagie STS sprayers will move to Deere's Thibodaux, Louisiana, factory beginning in fiscal year 2028. The company intends to end manufacturing operations at the Hagie factory in Clarion, Iowa, by fiscal year 2029.
Small planter production will move from Moline, Illinois, to Deere's facility in Paton, Iowa, in fiscal year 2027. In fiscal year 2029, sugar cane harvester production will move from Thibodaux to Catalão, Brazil, where Deere already manufactures the equipment. The company said the move will consolidate production in one location and bring manufacturing closer to the largest concentration of customer demand in South America. Thibodaux currently produces around 35 machines annually for the U.S. market.
Deere expects to continue serving customers without disruption during the manufacturing changes. The company said it will manage the transitions with the goal of maintaining product quality, availability, and service.
The company also acknowledged the effects the changes will have on employees and communities. Deere plans to engage with employees, union representatives where applicable, local leaders, and community stakeholders throughout the transition. It also is committed to identifying the best future use for the Ottumwa and Clarion sites.
Deere said its manufacturing strategy includes concentrating investments in modern, high-use facilities, expanding capacity where it creates the most value, advancing automation and manufacturing technologies, and using strategic sourcing to improve flexibility and cost competitiveness.
Nov 05, 2026
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