John Deere is restructuring its U.S. manufacturing operations, announcing plans to close two Iowa factories and shift production to other facilities. The changes come as the equipment manufacturer prepares to hire and recall hundreds of workers despite continued weakness in agricultural equipment sales.
In a Nov. 4 announcement, the Moline, Illinois-based company outlined plans to consolidate production of several agricultural equipment lines, including windrowers, round balers, sprayers and planters.
Among the most significant changes is the planned closure of Deere’s Ottumwa Works facility in Iowa. Windrower production will move to Des Moines Works by the end of fiscal year 2027, followed by round baler production by the end of fiscal year 2028. Deere intends to close the Ottumwa facility once those transitions are complete.
The company also plans to relocate production of Hagie STS sprayers from Clarion, Iowa, to Thibodaux, Louisiana, beginning in fiscal year 2028. Manufacturing operations at the Clarion facility are expected to end by fiscal year 2029.
Other changes include moving small planter production from Moline, Illinois, to Paton, Iowa, in fiscal year 2027. Deere also plans to shift sugar cane harvester production from Louisiana to Brazil in fiscal year 2029, consolidating production closer to its largest customer base in South America.
The restructuring comes as Deere prepares to bring additional workers into its manufacturing operations.
The company expects to hire more than 400 workers across its factories and recall more than 275 employees in Waterloo, Iowa, over the coming months. Deere says those recalls would bring the total number of workers called back since 2024 to approximately 1,000.
However, the planned hiring follows significant workforce reductions.
Between 2024 and 2025, Deere reduced its United Auto Workers-represented factory workforce by approximately 1,600 employees. The company also eliminated roughly 3,500 U.S. positions across production and salaried corporate operations during that period.
Deere says the latest manufacturing changes are intended to better align production capacity with customer demand, reduce operating costs and support investments in automation and advanced manufacturing technology.
The company acknowledged the impact the closures will have on employees and local communities, saying it plans to work with employees, union representatives and community leaders while exploring future uses for the Ottumwa and Clarion facilities.
