Deere to Close Ottumwa and Clarion Plants, Affecting Up to 600 Iowa Jobs

John Deere will close two Iowa plants, affecting roughly 300 employees at the Ottumwa Works and another 200 to 300 at Clarion, according to Des Moines Register estimates. The closures anchor a multiyear restructuring that reshuffles machine production across North America and Brazil.

Windrower production consolidates from Ottumwa Works, which dates to the early 1900s, to Des Moines Works by the end of fiscal 2027. Manufacturing of STS self-propelled sprayers by Deere subsidiary Hagie will move from Clarion, operating since the 1940s, to Thibodaux, Louisiana, within a few years. Thibodaux's sugarcane harvester line shifts to Catalão, Brazil, by 2029.

Deere framed the moves as footprint optimization. "As markets, technologies and customer expectations evolve, John Deere continually evaluates its manufacturing footprint to ensure it is well-positioned to serve customers and compete globally," the company said in a statement, citing streamlining, automation, modern manufacturing technology and strategic sourcing to improve flexibility and cost competitiveness.

Two additional changes round out the plan:

• Small-planter production moves from John Deere Seeding in Moline, Illinois, to Paton, Iowa.
• The Construction and Forestry Division is "evaluating strategic sourcing opportunities" to strengthen competitiveness and increase investment in product development, technology, field sales and customer support.

What does this mean for Iowa jobs and the UAW?

The announcement lands mid-contract. Deere's collective bargaining agreement with the United Auto Workers, which represents Ottumwa employees, expires in fall 2027. UAW members rejected a Deere offer in an August vote, citing 1,600 workers already laid off companywide.

The union responded sharply. "The UAW will use every tool at our disposal, from our contract negotiations in 2027 to legislative and executive action, to keep good jobs in Iowa and stop the one-sided class war waged by John Deere," the union said, adding: "It's time for America to come together to save John Deere from its own corporate greed."

The closures build on years of restructuring: outsourced manufacturing from Iowa to Mexico and thousands of job cuts at Dubuque, Waterloo, Davenport and Ankeny facilities.

Simultaneously, Deere announced a $20 billion North American investment over the next decade, including a $70 million excavator plant in Kernersville, North Carolina. Dealer consolidation parallels the manufacturing shift. Large ag equipment dealer groups fell more than 25% in a decade, from 96 stores in 2020 to 77 this year, per Farm Equipment magazine data.

How weak is the equipment market behind the cuts?

The cuts track a sluggish farm economy. U.S. tractor sales dropped 16.4% year over year in September, the Association of Equipment Manufacturers reported, while combine sales fell 10.9%.

Deere's latest quarter still delivered growth:

• Net sales and revenues rose 5% to $12.6 billion.
• Equipment operations net sales climbed 6% to $10.9 billion.
• Equipment operations posted a 14.4% operating margin.

"This quarter's result reflects strong execution across all business segments amid a dynamic market and evolving operating environment," Christopher Seibert, Deere's director of investor relations, told investors on the Q3 earnings call, citing factories that "exceeded expectations on production output" and favorable price realization.

Production and precision ag sales tell the other side: down 6% for the quarter and roughly 10% for the full year. Deanna Kovar, president of Deere's global agriculture and turf division and production and precision ag, said the company is "proactively adjusting production levels" and "modestly under-producing retail demand" in South America to control inventory. She called 2026 the "bottom of the agricultural equipment cycle," with a "measured recovery rather than a sharp rebound" expected in 2027.

Are competitors cutting too?

The pressure spans the industry. CNH Industrial closed its Burlington, Iowa, backhoe plant earlier this year, laying off at least 390 workers under WARN Act notices, citing cratering backhoe demand while skid-steer and compact track loader sales rose elsewhere. AGCO cut production 10%. Monarch Tractor ceased autonomous operations and sold its intellectual property and assets to Caterpillar.

Deere said customers will not see disruptions and that it "will engage with employees, union representatives where applicable, local leaders and community stakeholders" while seeking the best future use for the Ottumwa and Clarion sites. How the 2027 UAW negotiations absorb up to 600 displaced Iowa positions will shape the restructuring's final cost.