Deere falls as FTC and USDA open joint inquiry into farm-equipment industry
-3.80% to $656.87 from $682.79
What moved DE
- The FTC and USDA opened a joint inquiry examining restrictive dealer contracts, hidden fees, and alleged retaliation against farmers who bypass authorized dealers for repairs or purchases.
- The USDA said it has received a growing number of complaints from farmers nationwide about barriers to buying and servicing equipment.
- The inquiry follows an earlier FTC settlement that requires Deere to give farmers and independent repair shops access to the same repair tools and software as its authorized dealers for ten years.
- Rivals CNH Industrial and AGCO also fell, down about 5.7% and 5.9% respectively, as the sell-off spread across farm-equipment makers.
- The notice is a fact-gathering exercise rather than a lawsuit, with the public comment period open until December 7.
Sources: Seeking Alpha · Investing.com · GuruFocus · Stocktwits