‘Lose, Lose’ for Producers if Deere Strike Continues

There is still no agreement between Deere & Company and its union employees as the labor strike continues.

Erkut Sonmez, an Associate Professor of Supply Chains with the University of Nebraska-Lincoln, says farmers were already struggling to get parts and equipment and that’s likely to get worse without a solution to the Deere/UAW strike. “It’s going to be lose, lose from John Deere’s perspective and the supply chain perspective,” Sonmez says. He indicates the uncertainty has created some panic buying and that if the strike isn’t resolved soon, it will have ripple effects outside of the supply chain. “There are concerns about crop insurance because you need to harvest before a certain date,” he says. “There are transportation and production backlogs, and if parts and equipment aren’t moving through the supply chain, delivery times could double.”

EDITOR’S TAKE:

Our thoughts exactly! The longer this strike continues, the worse matters become for farmers trying to harvest if they have a breakdown. Time is critical during both planting and harvesting on the farm. The last thing a farmer wants or needs is to have to wait for parts/repairs. Even during the best of circumstances, farmers get pretty irritated with a breakdown, especially if they are working around bad weather conditions. As we have stated in previous editions of the AIR, let’s hope this strike is resolved amicably and soon. It’s in the best interest of everyone, but more immediately the farmer – as their entire year is potentially at risk and on the line! Deere recently issued a statement that they remain committed to get this issue behind them and to move forward in serving the needs of their customers. In the meantime, they are keeping the doors open with management personnel working in the manufacturing plants.