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FTC and USDA open inquiry into agricultural equipment market
The probe comes as Deere shares fell as much as 5.7%, and it follows a July settlement with Deere tied to allegations about limits on independent repair.
The Federal Trade Commission and the US Department of Agriculture have launched an inquiry into agricultural equipment market practices, including potential anticompetitive conduct, according to an Insurance Journal writeup of the agencies’ release.
The inquiry cites a growing number of complaints from farmers who say they face barriers related to equipment and repair options, and it frames the effort as part of the FTC’s work to preserve competition in the agricultural sector.
In market reaction, Deere & Co. shares extended losses to as much as 5.7%, while rivals AGCO Corp. and CNH Industrial NV fell as much as 8.4% and 7.3%, respectively, and Caterpillar Inc. dropped as much as 6.4% intraday.
The report also links the scrutiny to earlier developments, including a July settlement with Deere that resolved a lawsuit alleging the company unlawfully limited the ability of farmers and independent repair providers to service its farm equipment, amid financial stress for farmers from high machinery prices and elevated interest rates.