John Deere is planning to close two production plants in the United States

John Deere is overhauling its manufacturing footprint across the Midwest and beyond, announcing a multi-year restructuring plan that will shutter two Iowa production facilities and shift multiple equipment lines to other domestic and international plants. The changes, which will occur in phases between 2027 and 2029, are being attributed to shifting customer demand and available manufacturing capacity.

While the company frames the reorganization as an effort to concentrate investment in modern, high-use facilities, sadly the closures represent a major blow to two Iowa manufacturing communities.

Ottumwa works slated for closure by end of fiscal 2029 John Deere says

Under the newly announced plan, John Deere will phase out operations at its historic 115-year-old Ottumwa Works facility in southeastern Iowa, fully closing the site by fiscal year 2029.

The transition will take place in stages. The first one in the fiscal year 2027 with the windrower production that will be relocated from Ottumwa Works to Des Moines Works. The second one by fiscal year 2028 when round baler production will also be moved to Des Moines Works.

The Ottumwa plant has faced cutbacks in recent years. In July 2022, John Deere announced it was moving its mower-conditioner production to a hay and forage factory in Monterrey, Mexico. At the time, local station CBS2 reported that John Deere employed 800 workers in Ottumwa, a community of more than 25,000 residents.

Hagie sprayer production line moving to louisiana

A similar fate lies ahead for John Deere’s Hagie manufacturing facility in Clarion, Iowa. Beginning in fiscal year 2028, production of Hagie STS sprayers will transition to the company’s factory in Thibodaux, Louisiana, leading to a complete shutdown of manufacturing operations in Clarion by fiscal year 2029.

Deere acquired a majority stake in Hagie Manufacturing in 2016 before buying out the remaining ownership in 2020. Hagie has been a cornerstone of Clarion, a town of 2,770 residents, since the 1940s, and the shutdown will ripple across north-central Iowa. According to Wright County Economic Development, the facility is one of the area’s top employers, with approximately 300 workers.

Despite these moves, John Deere expects to continue serving its customers without disruption throughout the transition. However, the company acknowledged the heavy toll these closures will take on its workforce and regional economies.