A busted John Deere tractor used to mean more than a frustrating day in the field. Wisconsin farmers often had limited repair options, aside from calling a John Deere dealer. But there are more choices if your tractor or combine breaks down today. A recent John Deere settlement with the Federal Trade Commission (FTC) requires the company to make more of its repair resources available to farmers and independent mechanics on fair and reasonable terms.
This could ultimately mean fewer trips to a dealership, less downtime, and potentially lower repair costs. But farmers are still asking five main questions about the settlement.
1. What are farmers now allowed to do?
Farmers and independent mechanics can access the tools and information previously limited to John Deere’s dealer network.
This includes:
- Diagnostic software
- Electronic programming tools
- Technical manuals
- Tools needed to restart machines after certain shutdowns
- Repair resources for newer equipment
- Future repair tools as John Deere continues to modernize its equipment
John Deere is also required to alert its dealers about any expanded repair opportunities.
The company cannot discriminate against farmers who choose to fix their own equipment or retaliate against independent repair providers using authorized tools. Those tools and the software needed does not necessarily have to be free. The settlement requires John Deere to make these items available on fair and reasonable terms.
Yet, the overall financial impact could be considerable. An independent mechanic may charge less per hour than a dealership. You may also eliminate the need to transport equipment long distances or have to wait for a technician to become available.
“It could help farmers avoid borrowing tens of thousands of dollars for repairs,” Darin Von Ruden, president of the Wisconsin Farmers Union, said. “That may ultimately cost much less to complete.”
2. Why is the FTC still watching John Deere?
The FTC officials will monitor John Deere’s compliance with the settlement for the next 10 years.
John Deere is expected to submit compliance reports. But if the company violates the settlement terms, the oversight period could be extended.
“The length of the oversight is important because farm equipment is becoming increasingly dependent on computers and software,” Michelle Ramirez-White, government relations director with the Wisconsin Farmers Union, explained. “This was a huge win in the grand scheme of agriculture.”
3. When does this make a difference for farmers?
This makes a difference immediately! Von Ruden, who is an active dairy farmer from Westby, in the southwestern part of the state, believes it all came down to something farmers have always valued: being able to fix their own equipment.
Modern farm machinery can run on some sophisticated electronic systems. A tractor may have a relatively simple mechanical problem. But without the right diagnostic equipment, determining exactly what went wrong can be difficult. And it can become especially costly if it happens during planting or harvest.
“If you had a piece of equipment that had John Deere green on it, you would’ve had to take it to their shop to be fixed,” Von Ruden said. “The settlement gives farmers another option. You can diagnose and repair the equipment yourself or take it to an independent mechanic.”
4. How did we get here in the first place?
The John Deere case was not a consumer protection issue. It was brought forward instead as an antitrust case. Several states joined the federal case, including Wisconsin.
The FTC argued that John Deere’s control over repair resources created a barrier to competition. This made it difficult for farmers and independent mechanics to access the same level of repair services available through John Deere dealerships.
5. Where could this settlement go in the future?
The settlement doesn’t mean farmers will never need a John Deere dealership again. But instead, it gives you more choices. You can still use a John Deere dealer, but you can also decide to make the repair yourself or work with an independent mechanic who has access to the necessary repair resources.
And the broader takeaway could extend beyond John Deere.
“The average person now has the ability to simply fix their own equipment,” he explained.
The settlement also addresses future equipment. This means John Deere’s repair obligations aren’t limited to the tractors and combines farmers already have in their sheds. As machinery becomes more sophisticated, having the ability to repair that equipment could become just as important as the machinery itself.
These five questions are part of a discussion for the weekly “Lunch on the Hill” program hosted by Teri Barr. You can listen to the entire episode here:
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