John Deere, a leading producer of agricultural equipment, has announced plans to cut around 800 jobs across its plants in Iowa and Illinois within the next few weeks. This decision comes after the company revealed last month that it will 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 expressed concern about these job cuts and relocations, stating that anytime jobs are lost or moved out of the state or country, it is 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. Several factors have contributed 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.
Naig emphasized that agriculture and manufacturing are key economic drivers in Iowa, highlighting that other industries such as meat processing and manufacturing are also being impacted by these challenges. He stated that addressing these challenges faced by these sectors is crucial for ensuring their continued growth and success. Naig made these remarks during a visit to a local parts fabrication business in Davis County on Monday.
