By Andi Anderson
Two major agricultural companies, John Deere and Nutrien, have announced plans to close facilities in the coming years as they respond to economic challenges affecting the agriculture sector. The decisions reflect changing market conditions, weaker demand, and efforts to improve operational efficiency.
John Deere recently revealed plans to close two manufacturing facilities in Iowa and transfer production to other locations. The company will gradually move windrower and round baler production from its Ottumwa, Iowa, plant to its facility in Des Moines. The transition is scheduled to occur between fiscal years 2027 and 2028, with the Ottumwa plant expected to close by fiscal year 2029.
The company also announced plans to discontinue manufacturing at its Hagie facility in Clarion, Iowa. Production of Hagie STS sprayers will be transferred to a facility in Louisiana beginning in fiscal year 2028, with manufacturing operations in Clarion expected to end by fiscal year 2029.
The closures could affect hundreds of employees. Company representatives noted that workforce impacts will depend on future production needs and overall business conditions. Local officials estimate that the Ottumwa closure could result in the loss of hundreds of jobs and a significant reduction in local payroll spending.
These changes come during a period of reduced demand for farm equipment. John Deere reported lower profits and declining sales in its production and precision agriculture equipment segment. The company has stated that the agricultural equipment market continues to experience a downturn that began several years ago.
Despite the facility closures, Deanna Kovar, president of Deere’s agriculture and turf division, emphasized the company's commitment to supporting affected communities. She stated, “We intend to treat employees fairly and respectfully through the process, and we intend to continue to support all of these communities”.
The agricultural industry is also seeing adjustments in the fertilizer sector. Canadian fertilizer producer Nutrien announced plans to close its White Springs facility in Florida during the second quarter of 2027. The decision follows a strategic review of operations and comes as mining reserves at the site approach depletion.
Nutrien reported financial pressure from higher production costs and weaker fertilizer demand in North America. Rising sulfur costs and lower nitrogen sales volumes contributed to reduced earnings performance. Industry analysts noted that elevated fertilizer prices have affected purchasing activity while increasing operational challenges for manufacturers.
The announcements from both companies illustrate the broader pressures facing agricultural industries. Lower equipment demand, higher input costs, and changing market conditions continue to influence business decisions across the sector. While companies remain committed to serving agricultural customers, many are evaluating production strategies to improve efficiency and remain competitive in a challenging economic environment.
As agriculture continues to adapt to evolving economic conditions, producers, manufacturers, and suppliers will closely watch market trends, input costs, and demand levels. These factors are expected to play a major role in shaping future investment, production decisions, and employment opportunities throughout the agricultural economy.
Photo Credit: gettyimages-fotokostic
Categories: Iowa, Sustainable Agriculture