Deere to Cut 800 Jobs in Iowa and Illinois as Ag Equipment Production Moves to Mexico

John Deere, a leading ag equipment manufacturer, has announced plans to cut approximately 800 jobs at its plants in Iowa and Illinois within the next few weeks. This decision comes after the company revealed last month that it would be moving the production of its skid steer loaders and compact track loaders from Dubuque to Mexico by the end of 2026.

Iowa Secretary of Agriculture Mike Naig expressed his concern about these layoffs and relocations, stating that anytime jobs are being lost or moved out of the state or country, it is concerning and important to understand the reasons behind it. The company attributed these job cuts to rising manufacturing costs and a slowdown in new ag equipment sales due to lower crop prices. The agricultural economy is currently facing challenges such as a predicted 25% drop in farm income this year compared to last year.

Naig highlighted various factors contributing to this “softness” in the ag economy, including inflation, high input prices, and interest rates, which are causing delays in decision-making within the industry. Deere will be eliminating over 200 jobs at its Davenport plant, 99 jobs in Dubuque, and more than 500 jobs in East Moline, Illinois by the end of August and September. Earlier this year, the company announced over 800 job cuts at other facilities in Waterloo, Ottumwa, and the Des Moines metro.

Naig noted that the economic challenges are not confined to just the ag equipment sector but are also impacting other industries such as meat processing and manufacturing. He emphasized that supporting agriculture and manufacturing as key economic drivers is crucial for the state’s growth and success. Naig made these remarks during a visit to a local parts fabrication business in Davis County on Monday.

The agricultural industry is facing significant challenges due to various factors such as inflation, high input prices, interest rates