John Deere is changing a part of its manufacturing network with production changes that will impact four facilities in the United States and Brazil. The plan is to shut down manufacturing at two plants in Iowa by October 2028 and shift several product lines to other locations. The intention is to move production capacity nearer to customer demand in the regions, improving operational competitiveness and containing costs.

“The first big change is at Deere’s Ottumwa, Iowa, plant, according to a company announcement Nov. 4. Manufacturing operations at the plant are expected to cease by October 29, 2028 with production moving to the company’s Ankeny facility, also in Iowa. The Ottumwa site currently builds round balers and windrower crop cutters.

The Iowa Clarion plant will also close a second time. Deere intends to discontinue operations at the site by October 30, 2028, transferring manufacturing to its facility in Thibodaux, Louisiana. The single tank Hagie sprayer is now produced by Clarion.

The restructuring also implies a change in the geographical location of sugar cane harvester production. In fiscal 2029, Deere will shift manufacturing from Thibodaux, Louisiana, to its Catalão facility in Brazil. The current financial year is from October 30, 2028, to October 28, 2029.

The move is to bring manufacturing closer to South America, where the largest concentration of customers for these machines is located. Deere now makes some 35 sugar cane harvesters a year at its Thibodaux plant, for the U.S. market.

Another production move will happen sooner. The company intends to move production of small planters from Moline, Illinois, to its Paton, Iowa, facility during fiscal 2027, which runs from Nov. 2, 2026, to Oct. 31, 2027.

In addition to these specific manufacturing changes, Deere is also looking at its sourcing strategy within its Construction and Forestry Division. The assessment explores opportunities across the division's operations to enhance competitiveness and manage costs.

The company says the review is because of wider pressures on the industrial sector, including changing market conditions, evolving customer requirements and rising cost pressures globally.

Production tweaks alongside a big U.S. manufacturing spending program

The announcement of the latest restructuring comes nine months after Deere announced plans for two more industrial projects in the United States.

Over the next year, the company plans to open a $125 million distribution center near Hebron, Indiana, and a manufacturing campus in Kernersville, North Carolina.

The two are part of Deere’s larger commitment to invest $20 billion in U.S. manufacturing over the next decade, the company said.

The mix of plant closures, production changes and new industrial projects is a sign of Deere’s work to reshape its manufacturing footprint even as it invests in its U.S. operations. The manufacturer is looking to better match its industrial capacity to customer demand in different regions by moving production between facilities and markets.