The FTC’s Lawsuit vs Deere - What it Means for Farmers’ Right to Repair Equipment

The debate over the right to repair has culminated in the FTC’s suit against John Deere after nearly four years of building the case.

The U.S. Federal Trade Commission (FTC) has filed a lawsuit against John Deere over equipment repair practices. 

The lawsuit, filed in conjunction with the State of Illinois and State of Minnesota, alleges Deere & Co. has “throttled the ability of farmers and independent repair providers to repair Deere equipment, leaving farmers wholly reliant upon Deere’s network of authorized dealers for many key repairs.”

“Durable, reliable, and easily repairable agricultural equipment is critical to American farmers’ ability to profitably produce their crops,” the lawsuit reads. 

Much of Deere’s newer equipment requires a software tool to diagnose and repair electronic problems. The information and knowledge needed to create that software is only available to Deere, the lawsuit alleges. By making this tool only available to Deere dealers, farmers have to go to Deere dealers for repairs rather than completing the repairs themselves or with an independent technician, reducing farmers’ ability to receive timely service and increasing costs.  

“Illegal repair restrictions can be devastating for farmers, who rely on affordable and timely repairs to harvest their crops and earn their income,” said Lina M. Khan, FTC chair. “The FTC’s action today seeks to ensure that farmers across America are free to repair their own equipment or use repair shops of their choice — lowering costs, preventing ruinous delays, and promoting fair competition for independent repair shops.”

Andrew Ferguson, commissioner for the FTC and President Donald Trump’s pick for FTC chair, wrote a dissenting statement on the filing. Ferguson said the suit was made in haste to beat President Trump’s inauguration, and shortchanges an ongoing investigation, claiming the FTC lacks the evidence to fit the complaint. He favors settling the litigation “only if that settlement provides real, tangible benefits to America’s farmers.” 

The National Farmers Union (NFU) announced its support for the FTC’s lawsuit after filing a legal complaint against Deere in 2022. 

“Today’s lawsuits mark a key victory in this fight for family farmers and ranchers, recognizing that monopolies should not stop farmers from being able to repair their own equipment,” said Rob Larew, President of NFU. “When we prevail, farmers will have the power and freedom to fix their equipment faster and at a lower cost.” 

Deere’s Response

Deere & Co. released an official response to the FTC lawsuit, saying it will defend itself against the “baseless” lawsuit. Deere claims in the statement the lawsuit is “based on flagrant misrepresentations of the facts and fatally flawed legal theories, and it punishes innovation and procompetitive product design.”

“It is extremely disappointing that three commissioners of the FTC chose to file a meritless lawsuit on the eve of the transition to a new administration,” said Denver Caldwell, Vice President of Aftermarket and Customer Support for John Deere. “Our recent discussions with the Commission have revealed that the agency still lacked basic information about the industry and John Deere’s business practices and confirmed that the agency was instead relying on inaccurate information and assumptions.”

Deere reaffirmed its commitment to customer self-repair — pointing to the launch of Equipment Mobile in 2023. Deere recently announced new tools allowing customers and independent technicians to reprogram Deere-manufactured electronic controllers. The new tools will be integrated into John Deere Operations Center, with the pilot program set for launch in the U.S. and Canada by the second half of 2025.

The Cost to Farmers

The U.S. Public Interest Research Group (PIRG) surveyed 53 farmers across 14 states in 2023 to compare repair costs, labor hours, and downtime from repairs farmers can fix themselves compared to repairs that require an independent or dealer mechanic. On average, the survey found farmers lose $3,348 per year to downtime caused by repair restrictions. When applying those results to the entire U.S., repair restrictions cost farmers more than $3 billion each year. 

The surveyed farmers reported dealer mechanics charge an average of $58.90 more per hour of labor than independent mechanics. The higher dealer labor rates raised the downtime costs an average of $1,328 per year — another $1.2 billion dollars nationally. PIRG concludes repair practices are costing U.S. farmers $4.2 billion per year.

In addition to the increased repair costs at dealerships, PIRG noted the labor shortage for equipment technicians means farmers can experience further downtime waiting for authorized repairs. Combined with shorter weather windows, farmers need to maximize uptime to complete each part of the growing cycle. 

How We Got Here

The right to repair has been a hotly-contested issue among consumers, advocacy groups, and manufacturers across industries, with the FTC investigating manufacturers like John Deere, Harley-Davidson, and Westinghouse. 

In January 2023, John Deere and the American Farm Bureau Foundation (AFBF) signed a memorandum of understanding (MOU) ensuring farmers and ranchers had the right to repair their own farm equipment. Zippy Duvall, President of AFBF, said this would address issues farmers have accessing repair information and tools, while protecting Deere’s intellectual property. 

John Deere launched the Customer Service Advisor tool in May 2022 to provide farmers with a digital database of operator, diagnostic, and technical manuals that was previously available only through dealerships. The software allows users to clear and refresh codes, take diagnostic readings, and perform limited calibrations. Once the issue with a farmer’s machinery is identified, the tool guides them to the part number they need. 

Customer Service Advisor is a subscription-based service available for $3,100 per year, plus an interface kit that costs $1,376, for a total of $4,476 the first year. “It does not include comprehensive diagnostic information, nor does it allow farmers to electronically pair parts to the tractor,” according to the 2023 PIRG report. The FTC lawsuit said this tool is inferior to the full-function dealer Service Advisor tool, and lacks many key functions necessary for comprehensive repair. 

Farmer sentiment may be another reason agriculture is receiving focus rather than the automotive industry. Out of all groups of people, none view repair as an inherent right like farmers do, according to John Schwarz II, an ag law attorney and farmer in Indiana.

“Farmers have been fixing their own equipment ever since the first oxen yoke or wagon wheel,” Schwarz said. “That still holds true today in that — if they are able to — the vast majority of farmers will try and fix machinery themselves before taking it to the dealer.”

EDITOR’S TAKE:

That Right to Repair is a hotly debated issue is, quite frankly, an understatement. And there are feasible arguments on both sides of the issue. Farmers/ranchers have historically done many repairs on their own. It is not uncommon to find a well-equipped machine shop with a large selection of power tools also, indicative of their capability to perform many repairs. On the other side of the coin, manufacturers, such as John Deere, are producing very sophisticated and complex equipment today. The software is extremely advanced and often proprietary. Will the government prevail? Only time will tell. Both sides of the dispute are prepared to take this issue all the way to the Supreme Court if necessary. Be sure your parts and service departments are customer oriented. In the case of farmers/ranchers, determine how to partner with them in meeting their day-to-day needs. Make it easy for them to do business with you!