Deere, peer stocks slide as FTC and USDA launch agricultural equipment inquiry

Investing.com -- Shares of the country’s biggest agricultural machinery manufacturers took a hit on Wednesday after federal regulators announced a broad investigation into the industry’s business practices.

The news sent Deere & Company stock tumbling 5.0%, while shares of rivals CNH Industrial and AGCO Corporation fell 5.7% and 5.9%, respectively.

The sell-off was triggered by a joint announcement from the Federal Trade Commission and the U.S. Department of Agriculture. The two agencies are teaming up to investigate whether equipment manufacturers and distributors are using their market power to unfairly squeeze farmers. According to the USDA, a growing number of farmers nationwide have complained about facing steep barriers just to buy machinery or access the services needed to keep their tractors running.

To get to the bottom of the issue, regulators are asking the public to share their firsthand experiences. They are specifically looking to hear from farmers, independent mechanics, and even current or former dealership employees. The agencies want to uncover the inner workings of the market, including restrictive dealer contracts, hidden financial penalties, and any instances of retaliation against those who try to bypass the official dealership network.

This inquiry is just the latest step in a broader federal push to crack down on monopolies within the agricultural supply chain. It arrives on the heels of a major FTC settlement with Deere—backed by five state attorneys general—that finally guaranteed farmers the right to repair their own equipment rather than being forced to rely entirely on authorized service centers.

Ultimately, regulators hope the inquiry will reveal how these industry practices impact equipment pricing, innovation, and the economic survival of rural communities.

The information gathered over the coming months will be used to shape future legal actions and regulatory rules designed to keep the agricultural market fair.

Original Article

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