John Deere Plans to Close Two Iowa Plants, With About 300 Positions Potentially Affected

John Deere announced on November 4 that it plans to phase out manufacturing at two Iowa facilities, Ottumwa Works and the Hagie plant in Clarion, as part of a broader effort to reorganize its U.S. manufacturing footprint. The company will move production to other locations over several fiscal years, saying the changes are intended to align capacity with customer demand, improve efficiency and strengthen long-term competitiveness.

A Deere spokesperson told Iowa Capital Dispatch and DTN that about 300 positions could be affected under normal production volumes. The company emphasized that its current output is well below normal levels, so the actual employment impact will depend on future business conditions, production volumes and staffing needs. The 300 figure is an estimate, not a confirmed layoff count.

The announcement came shortly after Deere said it expected to hire more than 400 people across its factories and recall 275 workers to its Waterloo operations. The two developments involve different facilities and production needs, and the closures are part of a longer-term manufacturing transition rather than an immediate shutdown.

Ottumwa production will move before the plant closes

Deere plans to move windrower production from Ottumwa Works to Des Moines Works by the end of fiscal 2027. Round-baler production is expected to follow by the end of fiscal 2028. Once those production moves are complete, the company intends to close the Ottumwa factory.

Local reporting has put the facility’s workforce at about 700 employees, although Deere has not confirmed how many people will ultimately be affected. The company told Iowa Capital Dispatch that approximately 300 positions could be affected at normal production volumes across the planned closures. Deere also said it is currently operating far below normal production levels because of the downturn in the agricultural equipment market.

The company has not provided a final schedule for individual employee decisions. It said staffing impacts will depend on future demand, production requirements and the options available at other facilities.

Hagie sprayer production will move from Clarion to Louisiana

The second Iowa facility affected is the Hagie factory in Clarion. Deere plans to move production of Hagie STS self-propelled sprayers to its Thibodaux, Louisiana, factory beginning in fiscal 2028. Manufacturing operations at the Clarion plant are expected to end by the close of fiscal 2029.

Hagie is an Iowa-founded agricultural equipment brand that Deere acquired in 2020. The company said it will work with employees, union representatives where applicable, local leaders and community stakeholders as the transition proceeds. Potential support may include internal transfers, retraining, retention offers, relocation assistance, severance benefits and career-transition services.

Deere also said it is committed to identifying the best future use for the Ottumwa and Clarion sites. It expects to maintain product quality, availability and customer service during the transitions.

Other production changes are part of the same restructuring

The company’s announcement includes several additional manufacturing moves. In fiscal 2027, small-planter production is scheduled to move from John Deere Seeding in Moline, Illinois, to the company’s facility in Paton, Iowa. Deere said the Moline operation is relatively small and the employee impact is expected to be limited, with much of the change handled through natural attrition.

In fiscal 2029, Deere plans to move sugar-cane-harvester production from Thibodaux to its existing facility in Catalão, Brazil, consolidating production closer to the largest concentration of customers in South America. The Thibodaux plant currently produces about 35 sugar cane harvesters annually for the U.S. market. Deere’s Construction and Forestry division is also evaluating strategic sourcing opportunities, but the company has not announced a closure at its Dubuque facility.

Agricultural equipment demand remains a key factor

Deere said the changes reflect shifts in customer demand, available manufacturing capacity and global cost pressures. The company’s third-quarter 2026 results showed that net sales in its Production and Precision Agriculture segment fell 6% year over year, while operating profit declined 9%. The agricultural equipment sector has been affected by farm profitability, commodity prices, interest rates and the replacement cycle for large machinery.

The company’s recent hiring and recall announcement does not eliminate the pressures behind the closures. Deere said it plans to bring back 275 workers at Waterloo and hire more than 400 across several facilities, while the longer-term manufacturing changes will move production between sites and regions.

The confirmed plan is to transfer windrower and round-baler production out of Ottumwa, move Hagie sprayer production out of Clarion and eventually close both Iowa plants. The estimated 300 positions potentially affected are based on normal production volumes, not a finalized layoff list. The final employee arrangements, exact transition timetable and future use of the two sites remain unresolved.