Deere Plans 2 Iowa Plant Closures

LINCOLN, Neb. (DTN) -- John Deere announced plans to close two Iowa manufacturing plants in the next few years and move production to other cities, in a news release from the company on Wednesday.

Deere said it will be closing its plant in Ottumwa, Iowa, after moving windrower and round-baler production to Des Moines. In addition, the company said it will end manufacturing at its Hagie plant in Clarion, Iowa, after moving STS sprayer production to Louisiana.

Windrower production plans to move to Des Moines by the end of 2027 and round balers would follow by the end of 2028, according to Deere, followed by the closure of the plant in Ottumwa.

Hagie STS sprayer production is slated to move to Thibodaux, Louisiana, beginning in 2028 with manufacturing ending in Clarion, Iowa, by the end of 2029.

John Deere did not provide employment numbers or say how many jobs would be affected, although other media outlets on Wednesday reported the company has about 700 workers at the Ottumwa plant. The number of employees affected in Clarion is unclear.

When contacted by DTN for additional information, Deere said the specific employment effects will "depend on future business conditions, production volumes and staffing needs."

So, at "normal" production volumes, about 300 positions would be affected by the adjustments, Deere told DTN.

"However, John Deere is currently operating far below normal production volumes due to the downturn in the ag economy," the company said. "Employees will receive timely information as plans are finalized."

The company said it plans to provide transition support for employees at the affected facilities. That may include opportunities for workers to transfer to other plants, retraining assistance, retention offers, relocation assistance, severance benefits and career-transition support, according to Deere.

Just last week, Deere announced it anticipates hiring more than 400 people across its factories and calling back more than 275 employees to its plant in Waterloo, Iowa, according to a Oct. 30, 2026, news release from the company.

"With these callbacks, all employees previously on layoff in Waterloo, the Quad Cities, Ottumwa and Dubuque have been asked to return to work," the company said last week. "Approximately 125 employees remain on layoff in the Des Moines area."

Additionally, the company said in its latest announcement that it plans to move sugar cane harvester production from Louisiana to Catalao, Brazil, in 2029. The move will affect between 350 to 400 employees in Louisiana, according to information from Louisiana Economic Development.

"John Deere expects to continue serving customers without disruption throughout these changes," Deere said on Wednesday.

"The company will manage the transitions carefully with the goal of maintaining product quality, availability and service. At the same time, John Deere recognizes the impact these decisions will have on employees and communities. Throughout the transition, the company will engage with employees, union representatives where applicable, local leaders and community stakeholders, and is committed to identifying the best future use for the Ottumwa and Clarion sites."

Deere also announced plans for 2027 to move small planter production from John Deere Seeding in Moline, Illinois, to the company's facility in Paton, Iowa.

The company said it is "evaluating strategic sourcing opportunities" across its construction and forestry divisions.

"The changes reaffirm Deere's commitment to U.S. manufacturing by aligning production capacity with regional customer demand and advanced manufacturing capabilities," the company said.

"By concentrating investments in modern, high-use facilities, Deere intends to preserve and expand critical U.S. manufacturing capabilities, enhance competitiveness, support American manufacturing jobs and maintain its ability to invest through business cycles while continuing to serve customers well into the future."

In all, John Deere employs more than 12,000 people in Iowa and about 6,500 in Illinois, according to the company.

Todd Neeley can be reached at todd.neeley@dtn.com

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