The case is part of broader scrutiny in the U.S. over so-called right-to-repair practices, with regulators and plaintiffs arguing that some manufacturers limit competition by controlling access to repair tools and software.

What does the settlement cover?

The settlement fund covers eligible plaintiffs who paid Deere’s authorized dealers for repairs to large agricultural equipment from January 2018, according to a document filed on Monday in the federal court in Chicago, Illinois.

In the settlement, Deere also agreed to make available to farmers for 10 years “the digital tools required for the maintenance, diagnosis, and repair” of large agricultural equipment, including tractors, combines, and sugarcane harvesters, the filing showed.

The proposed accord requires a judge’s approval.

“This settlement addresses the issues raised in the 2022 complaint and brings this case to an end with no finding of wrongdoing,” Deere said in a separate statement.

Deere faces FTC suit

Deere also faces a separate lawsuit brought by the U.S. Federal Trade Commission. A U.S. judge ruled in 2025 that Deere must face that lawsuit, which accused the company of forcing farmers to use its authorized dealer network and driving up their costs for parts and repairs.

Deere is blocking farmers from acquiring the “tools and information necessary to repair their equipment in a timely and cost-effective manner,” the FTC had said in a court filing in April. Deere has denied the wrongdoing.

— Reporting by Carlos Méndez, Mrinmay Dey in Mexico City and Mike Scarcella in Washington

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Its shares climbed 8.1 per cent in morning trading.

The world’s largest farm-equipment maker previously scaled back factory production to counter weak demand for new machinery as lower crop prices and higher input costs push farmers to postpone big-ticket purchases.

The company is also working closely with dealers across its network to reduce inventory.

Construction, small agriculture demand recovering

It expects net income for 2026 to range between $4.5 billion and $5 billion (C$6.16 billion and C$6.85 billion) compared with its prior forecast of $4 billion to $4.75 billion. Analysts on average expect Deere to post full-year net income of $4.45 billion, according to data compiled by LSEG.

“We’re encouraged by the ongoing recovery in demand within both the construction and small agriculture segments,” CEO John May said.

“These positive developments reinforce our belief that 2026 represents the bottom of the current cycle.”

Deere now expects 2026 net sales in two segments — Small Agriculture & Turf and Construction & Forestry — to rise about 15 per cent each compared with its earlier forecast for a roughly 10 per cent increase.

Oppenheimer analyst Kristen Owen said the company ended the quarter with relatively lean inventories, building historically less stock in the fourth and first quarters and leaving room for a potential upside as inventory normalizes through the year.

Deere posted net income of $656 million (C$898.7 million), or $2.42 per share, for the quarter, down from $869 million, or $3.19 per share, a year ago, but above analysts’ estimate of $2.05 apiece.

It’s first-quarter revenue rose 13 per cent to $9.61 billion (C$13.16 billion).

Tariffs drag, farm income remains weak

U.S. President Donald Trump’s sweeping tariffs have weighed on Deere’s operating profits. The Moline, Illinois-based firm has struggled with higher, tariff-driven production costs as it relies significantly on imported raw materials to manufacture its green and yellow tractors.

U.S. farmers are heading into another season of weak crop prices and elevated costs, forcing tough decisions about how, or if, to continue operating as ample grain supplies pressure markets.

The U.S. Department of Agriculture earlier this month forecast net farm income — a broad measure of profitability in the agricultural economy — to fall 0.7 per cent to $153.4 billion (C$210.14 billion) in 2026 from a year ago.

Deere expects a pre-tax tariff hit of around $1.2 billion in fiscal 2026.

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CEO John May said ongoing margin pressures from tariffs would continue to weigh on its large farm equipment unit, although he expects to benefit from cost cuts and demand from two of its other units that serve forestry and small agriculture markets.

“We believe 2026 will mark the bottom of the large ag cycle,” May added.

Lower crop prices and rising production costs have prompted farmers to defer big-ticket purchases and opt for rentals or preowned units for large agricultural equipment including tractors and combine harvester.

Deere had also been considering production shifts, higher pricing and widening its portfolio of used equipment as it looked to offset the demand hit.

Tariff impacts

U.S. President Donald Trump’s sweeping tariffs have impacted companies across sectors, especially manufacturing and industrial firms that rely significantly on imported raw materials. In August, Deere said it expected a pre-tax tariff impact of nearly $600 million (C$843.9 million) in 2025.

Deere expects its annual net income for fiscal 2026 to be between $4 billion and $4.75 billion (C$5.6 billion to $6.8 billion) , below analysts’ estimates of $5.33 billion, according to data compiled by LSEG.

The farm-equipment maker posted a quarterly net income of $1.06 billion, or $3.93 per share, for the quarter, down from $1.24 billion, or $4.55 per share, in the year-ago period.

Analysts on average had expected a quarterly profit of $3.85 per share.

Its fourth-quarter revenue rose 11 per cent to about $12.4 billion from a year ago, topping estimates of $9.85 billion.

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U.S. President Donald Trump’s tariffs have impacted companies across sectors, especially the manufacturing and industrial firms.

Farmers increasingly cautious

This has added to the woes of farm-equipment makers who were already grappling with slow demand due to a slump in crop prices for wheat, corn and soybeans in North America and farmers opting to rent machinery instead of buying.

“Tariff uncertainty and deflated commodity prices have made farmers increasingly cautious in spending decisions and more hesitant to accept higher machinery prices,” said CFRA Research analyst Jonathan Sakraida.

Despite the gloomy demand environment, Deere CEO John May said the company was able to manage its inventory levels to help production match retail demand.

The company’s cost-saving measures also helped it top analyst estimates for third-quarter profit and revenue.

Peer CNH Industrial also topped second-quarter earnings estimates earlier this month, but warned that its annual sales could drop below last year’s levels.

Lower margins

Third-quarter operating profit from two of Deere’s largest units, which produce tractors, combines and construction equipment, roughly halved from a year earlier.

The company cut the higher end of its annual profit forecast to $5.25 billion (C$7.24 billion) from $5.50 billion, but kept the lower end intact at $4.75 billion.

In May, Deere said it expected tariffs to cost over $500 million (C$689.7 million) in 2025 before taxes, and that it was prepared to invest $20 billion in the U.S. over the next decade.

Global companies that reported between July 16 and August 8 projected a combined financial hit of $13.6 billion to $15.2 billion for the full year, a Reuters’ tariff tracker shows.

Trump has said the tariffs are a response to persistent U.S. trade imbalances and declining manufacturing power, and that the moves will bring jobs and investment to the nation.

Deere’s net income in the third quarter came in at $1.29 billion (C$1.78 billion), or $4.75 per share, compared with $1.73 billion, or $6.29 per share, a year earlier.

Analysts on average had expected the company to report a quarterly profit of $4.63 per share, according to data compiled by LSEG.

The company’s net sales fell about nine per cent to $10.36 billion (C$14.29 billion) from a year ago, more than analysts’ estimates of $10.31 billion.

— Reporting by Nathan Gomes in Bengaluru

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U.S. District Judge Iain Johnston in the federal court in Rockford, Illinois on Monday ruled for now to reject Deere’s effort to end the lawsuit, which was filed at the end of Democratic President Joe Biden’s administration in January.

The lawsuit alleges Deere is violating federal antitrust law by controlling too tightly where and how farmers can get their equipment repaired, allowing the Illinois-based company to charge artificially higher prices. The FTC was joined in its lawsuit by Michigan, Wisconsin and three other U.S. states.

Deere did not immediately respond to a request for comment, and the FTC declined to comment. Deere has denied any wrongdoing.

Ruling adds to legal woes

The ruling adds to Deere’s legal woes over repair services. Johnson ruled in 2023 that the company must face similar claims from crop farms and farmers that it illegally restricted maintenance and repair services through the use of authorized dealers.

The FTC and states, like the private plaintiffs, contend that Deere is abusing its market power, allowing the company to control prices and minimize competition.

Deere is blocking farmers from acquiring the “tools and information necessary to repair their equipment in a timely and cost-effective manner,” the FTC had said in a court filing in April.

‘No basis in law’

Deere countered that it does not compete in the market for repair services. The government plaintiffs filed their lawsuit “with two vague federal antitrust claims that hide the ball and have no basis in law,” Deere told the court.

The company also challenged the lawfulness of the structure of the FTC, an independent, bipartisan board that enforces antitrust and consumer protection laws. Deere alleged that restrictions against removing FTC commissioners illegally bar the president from exercising lawful oversight.

Johnston said Deere failed to show how it was harmed by the FTC’s removal procedures.

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Farmers facing high interest rates and weaker crop prices are leaning more towards renting rather than buying machinery, hitting sales of big-ticket equipment such as tractors and combines.

Deere was able to cushion the blow from softer demand and keep its margins steady by lowering production and warranty-related expenses.

Tariffs imposed by U.S. President Donald Trump have added to production costs and led to uncertainty for large industrial firms in international markets.

The company would continue to make “significant investments” in its core U.S. market, Deere said.

Peer CNH Industrial slashed its annual profit forecast earlier this month, citing a hit from lower shipments due to cooling demand and dealer destocking.

Deere and CNH struggled to keep pace with strong tractor demand in 2022, when farm income hit a record high and pandemic assistance payments gave farmers extra money to upgrade their fleets.

The world’s largest agricultural-equipment maker expects its annual net income to now be between $4.75 billion and $5.5 billion, compared to its prior forecast of $5 billion to $5.5 billion.

Its revenue for the second quarter fell about 18 per cent to $11.17 billion from last year, compared to analysts’ estimate of about $10.8 billion, according to data compiled by LSEG.

Quarterly net income fell to $1.8 billion or $6.64 per share, compared with $2.37 billion or $8.53 per share a year ago. Analysts on average had expected the company to report a profit of $5.58 per share.

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The results from the world’s largest farm-equipment maker come as U.S. manufacturers brace for the impact of President Donald Trump’s latest tariff announcements.

Trump has imposed sweeping tariffs on imports from Canada, Mexico and China. The levies on Canada and Mexico have been paused for a month, but not on China.

Trump, during a campaign speech in September, warned Deere of additional tariffs if the company moved some of its production to Mexico as planned.

The tariffs have increased uncertainty regarding the impact on U.S. farmers as soybeans, corn, wheat, and meat are particularly vulnerable to retaliatory measures from China, Canada, and Mexico.

Meanwhile, prices of industrial metals, crucial for manufacturing equipment, are rising, driven by Trump’s 25 per cent tariffs on steel and aluminum amid insufficient domestic production.

Deere reiterated its 2025 profit forecast of $5 billion to $5.5 billion (C$7.1 billion to $7.8 billion), which many analysts had labeled conservative and were anticipating potential upward revisions as the year progressed.

“Deere’s Q1 results reflect the trickiness of calling bottom in the thick of ongoing production declines,” Barclays analysts wrote in a note.

The company now expects sales in its largest production and precision agriculture segment, which includes larger tractors and combines, to fall between 15 per cent and 20 per cent, compared to its previous forecast of a 15 per cent decline.

The company said its outlook did not account for any impact from potential import tariffs by the U.S. and any retaliatory actions taken by other countries.

First-quarter net sales decreased 35 per cent to $6.81 billion (C$9.69 billion), compared with analysts’ estimates of $7.7 billion (C$10.96 billion), according to data compiled by LSEG.

Deere reported a profit of $3.19 per share, compared with Wall Street expectations of $3.11, helped by a drop in production costs.

— Reporting by Shivansh Tiwary in Bengaluru

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The world’s largest farm equipment maker is making strides towards automating manual work amid a shortage of skilled workers and high labor costs. In the agricultural sector, the challenge of finding workers to operate tractors has been a persistent issue and has been worsened by the pandemic.

“Our agriculture, construction and commercial landscaping customers all have work that must get done at certain times of the day and year, yet there is not enough available and skilled labor to do the work,” Deere chief technology officer Jahmy Hindman said.

The Moline, Illinois-based company revealed the second generation of its autonomy kit, which combines advanced computer vision, AI and cameras to help machines navigate terrains, at CES 2025.

Deere and other equipment makers such as Caterpillar have invested heavily in technology to automate off-highway vehicles such as farm tractors and mining vehicles.

Apart from two autonomous tractors, Deere also revealed a dump truck for quarries and a battery electric commercial landscaping mower – all of them will be equipped with multiple cameras to facilitate full autonomy.

Customers can also equip existing Deere tractors, articulated dump trucks and commercial mowers with autonomy kits, Deere said.

—Reporting by Shivansh Tiwary in Bengaluru

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A decline in farm incomes, high interest rates and an uncertain economy have compelled farmers to reassess large expenses on agricultural machinery and forced dealers to limit inventory restocking.

U.S. farm income is expected to fall for a second consecutive year in 2024, as farmers grapple with corn and soybean prices hovering near four-year lows.

“Amid significant market challenges this year, we proactively adjusted our business operations to better align with the current environment,” CEO John May said.

For 2025, Deere expects net sales to fall about 10 per cent to 15 per cent across all its machinery segments.

A slump in equipment volumes has also forced smaller rivals CNH Industrial and AGCO to trim their profit expectations for the rest of 2024.

The world’s largest farm-equipment maker expects profit for fiscal year 2025 in the range of $5 billion to $5.5 billion (C$7 billion to $7.7 billion) , compared with analysts’ average estimate of $5.93 billion (C$8.26 billion), according to data compiled by LSEG.

Concerns around supply chains and a surge in demand led dealers to significantly increase their inventories last year, boosting sales for Deere.

However, amid the recent demand slowdown, skeptical dealers have slowed inventory restocking.

“As expected, farmers are pulling back on equipment purchases, given the growing P&L pressure, and that is reflected in Deere’s results and guidance for 2025,” said Chad Dillard, senior analyst at Bernstein.

“It is encouraging Deere is managing channel inventories and defending price.”

The company reported a profit of $4.55 per share (C$6.34) for the fourth quarter ended Oct. 27, above Wall Street expectations of $3.87 ($5.39), aided by lower production expenses and cost controls, sending its shares up 1.8 per cent before the bell.

Net sales from equipment operations fell nearly 33 per cent to $9.28 billion (C$12.93 billion), missing analysts’ estimate of $9.34 billion (C$13.01 billion).

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Shares of the world’s largest farm equipment maker rose six per cent, lifting peer Caterpillar, which also reported a profit beat last week amid moderating demand, nearly three per cent.

Higher prices, implemented two years ago following supply chain complications and a surge in demand for industrial and agricultural equipment, have helped U.S. machinery makers to shield their profits from an industry-wide slump.

“Deere’s pricing power was reflected well in Q3 as price helped to dampen impacts from contracting volumes,” CFRA Research analyst Jonathan Sakraida said.

Deere maintained its 2024 net income at about US $7 billion, even as sales of new machines have shrunk amid a decline in crop prices and high borrowing costs, which have also forced dealers to limit inventory restocking.

U.S. farm incomes are forecast to plunge in 2024 due to a sharp decline in commodity prices, heightened production costs and shrinking government support.

“By keeping inventories in check, we have been able to maintain solid price realization,” said Deere’s director of investor relations, Josh Beal.

Deere also said it expects an improved favorable price realization in its agriculture segments in 2024 compared to its previous targets.

For the third-quarter, Deere reported a net income of $6.29 per share, compared with LSEG estimate of $5.63, while net sales and revenue decreased 17 per cent to $13.15 billion.

“We’ve prudently and proactively adjusted production schedules in our large agriculture business at a faster pace than ever before, in order to reduce field inventory in our end markets,” CEO John C. May said.

Deere said in June it would cut some production jobs and reduce salaried employees to keep a tight lid on costs.

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