Deere, CNH, AGCO Slide as FTC and USDA Launch Farm Equipment Inquiry

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Summary · why it matters

Federal regulators opened a broad investigation into the agricultural machinery industry's business practices, sending shares of the largest U.S. equipment makers sharply lower on Wednesday. Deere & Company fell 5.0%, while rivals CNH Industrial and AGCO Corporation dropped 5.7% and 5.9%, respectively. The sell-off followed a joint announcement from the Federal Trade Commission and the U.S. Department of Agriculture that the two agencies will examine whether equipment manufacturers and distributors are using their market power to unfairly squeeze farmers. Regulators are asking farmers, independent mechanics, and current or former dealership employees to share firsthand experiences as they probe restrictive dealer contracts, hidden financial penalties, and retaliation against those who try to bypass the official dealership network. The inquiry follows a major FTC settlement with Deere, backed by five state attorneys general, that guaranteed farmers the right to repair their own equipment, and the information gathered over the coming months will be used to shape future legal actions and regulatory rules.

Impact on assets 3

Climate Adaptation & Water▼
Deere & Company
DE
▼ NegativeRegulationrelevance

Deere is the central target, following its FTC right-to-repair settlement, as regulators probe dealer contracts and penalties.

AGCO Corporation
AGCO
▼ NegativeRegulationrelevance

FTC/USDA inquiry into farm equipment business practices targets AGCO among the largest makers, pressuring shares.

CNH Industrial N.V.
CNH
▼ NegativeRegulationrelevance

CNH Industrial is named as a subject of the FTC/USDA investigation into restrictive dealer contracts and market power.