Deere, CNH and AGCO Stocks Fall as FTC Launches Farm Equipment Probe

Shares of major U.S. agricultural machinery manufacturers fell sharply Wednesday after federal regulators launched a broad investigation into business practices across the farm equipment industry.

Deere & Company shares dropped about 5%, while rivals CNH Industrial and AGCO Corporation declined 5.7% and 5.9%, respectively. The losses followed a joint announcement from the Federal Trade Commission (FTC) and U.S. Department of Agriculture (USDA).

The agencies are investigating whether agricultural equipment manufacturers and distributors are using their market position in ways that unfairly hurt farmers. According to the USDA, farmers across the country have reported significant obstacles when purchasing machinery or obtaining services needed to maintain and repair tractors and other equipment.

Regulators are now seeking information directly from farmers, independent repair technicians, and current or former agricultural equipment dealership employees. Officials want details about industry practices including restrictive dealership agreements, financial penalties, and possible retaliation against customers or businesses that attempt to operate outside authorized dealer networks.

The investigation represents another step in the federal government’s wider effort to address competition concerns throughout the U.S. agricultural supply chain. Regulators have increasingly focused on whether industry consolidation and restrictive business practices are raising costs or limiting choices for farmers.

The inquiry also follows a major FTC settlement involving Deere and five state attorneys general. That agreement strengthened farmers’ ability to repair their own agricultural machinery instead of depending exclusively on authorized dealerships and service providers.

Federal officials will use information collected during the investigation to assess how current industry practices affect farm equipment prices, competition, technological innovation, and the financial health of rural communities.

The findings could ultimately influence future enforcement actions or new regulatory policies aimed at promoting competition in the agricultural machinery market.

Investors reacted quickly to the regulatory uncertainty. Deere closed down 3.8% at $656.87, while AGCO and CNH finished the session with losses of more than 6%, highlighting concerns about the potential impact of increased federal scrutiny on the largest farm equipment manufacturers.