John Deere is overhauling its manufacturing footprint across the Midwest and beyond, announcing a multi-year restructuring plan that will close two Iowa production facilities and shift multiple equipment lines to other domestic and international plants.
John Deere attributes the moves to shifting customer demand and available manufacturing capacity. The changes will occur in phases between 2027 and 2029. While the company frames the reorganization as an effort to concentrate investment in modern, high-use facilities, the closures represent a blow to two Iowa manufacturing communities.
Ottumwa Works Slated for Closure by End of Fiscal 2029
Under the newly announced plan, John Deere will phase out operations at Ottumwa Works in southeastern Iowa. By the end of fiscal year 2027, windrower production will relocate from Ottumwa Works to Des Moines Works. Round baler production will follow suit by the end of fiscal year 2028. John Deere plans to close the 115-year-old factory by fiscal year 2029.
The Ottumwa site has faced cutbacks before. In July 2022, John Deere announced it was moving mower-conditioner production to a hay and forage mower factory in Monterrey, Mexico. At the time, local station CBS2 reported John Deere employed 800 workers in Ottumwa, a town with more than 25,000 people.
Hagie Sprayer Line Heads to Louisiana
A similar fate awaits John Deere’s Hagie manufacturing facility in Clarion, Iowa. Beginning in fiscal year 2028, John Deere will move production of Hagie STS sprayers to its factory in Thibodaux, La., with the goal of ending manufacturing operations by fiscal year 2029. Deere acquired a majority stake in Hagie Manufacturing in 2016 and purchased the remaining ownership in 2020. Hagie has been a fixture in Clarion, a town of 2,770 people, since the 1940s.
The closure will be felt throughout north-central Iowa. Wright County Economic Development lists the Hagie Manufacturing facility as one of its major employers with around 300 people.
Small Planter Assembly Shifts from Illinois to Central Iowa
In another Midwest shuffle, John Deere will move small planter production in fiscal year 2027 from Moline, Ill., to the company’s facility in Paton, Iowa.
Sugar Cane Harvester Production Departs Louisiana for Brazil
While the Thibodaux facility gains sprayer manufacturing from Iowa, it will simultaneously lose production of sugar cane harvesters in a move to Catalão, Brazil, by fiscal year 2029.
John Deere already manufactures sugar cane harvesters in Catalão, and the move aligns production closer to the largest concentration of customer demand in South America. Thibodaux currently produces 35 machines annually for the U.S. market.
Navigating the Human and Community Impact
Despite the moves, John Deere says it expects to continue to serve customers without disruption as it undergoes these changes. However, the company acknowledged the heavy toll the closures will take on its workforce and regional economies.
“Throughout the transition, the company will engage with employees, union representatives where applicable, local leaders, and community stakeholders, and is committed to identifying the best future use for the Ottumwa and Clarion sites,” John Deere says.
