In a recent announcement, John Deere, an ag equipment maker, revealed plans to cut approximately 800 jobs at its plants in Iowa and Illinois within the next few weeks. This decision comes after the company previously announced that it would be moving the production of its skid steer loaders and compact track loaders from Dubuque to Mexico by the end of 2026.
Iowa Secretary of Agriculture Mike Naig has expressed concern about these layoffs and relocations, stating that anytime jobs are being lost or moved out of the state or country, it is worrisome and important to understand the reasons behind it. The company attributed these job cuts to rising manufacturing costs and a slowdown in new ag equipment sales due to lower crop prices.
The agricultural economy is currently facing challenges such as a predicted 25% drop in farm income this year compared to last year. Naig highlighted various factors contributing to this “softness” in the ag economy, including inflation, high input prices, and interest rates, which are causing delays in decision-making within the industry.
Deere will be eliminating over 200 jobs at its Davenport plant, 99 jobs in Dubuque, and more than 500 jobs in East Moline, Illinois by the end of August and September. Earlier this year, the company announced over 800 job cuts at other facilities in Waterloo, Ottumwa, and the Des Moines metro. Naig noted that these economic challenges are not confined just to the ag equipment sector but also impact other industries such as meat processing and manufacturing which indicate a broader issue affecting the economy.
Naig emphasized the importance of supporting agriculture and manufacturing as key economic drivers in Iowa. He stated that addressing these challenges faced by these sectors is crucial for their continued growth and success. This visit was made during a trip to a local parts fabrication business in Davis County on Monday where he further emphasized his support for these sectors
