John Deere Closes Two Iowa Plants Amid Labor Tensions
John Deere is closing factories in Ottumwa and Clarion, Iowa, while recalling hundreds of workers to other sites amid a dispute with the United Auto Workers.
Agricultural machinery manufacturer John Deere announced a restructuring of its U.S. operations that includes closing two Iowa factories and relocating several production lines. The company will move windrower and round baler production from Ottumwa Works to Des Moines Works by the end of fiscal year 2028, resulting in the closure of the Ottumwa plant. Additionally, the Hagie factory in Clarion will close by fiscal year 2029 as sprayer production moves to Thibodaux, Louisiana. Other shifts include moving small planter production from Moline, Illinois, to Paton, Iowa, and consolidating sugar cane harvester production in Catalão, Brazil.
Simultaneously, the company is recalling 275 workers and hiring 400 more across facilities in Iowa, Illinois, and Kansas, with many recalls filling roles at the Waterloo plant. John Deere stated these moves are designed to align capacity with customer demand and strengthen long-term growth. The company's Construction and Forestry Division is also evaluating strategic sourcing at the Dubuque Works facility.
The United Auto Workers condemned the closures as an "attack on the working class of Iowa," noting that the company recently posted a $1.3 billion profit. The union, which previously rejected a contract extension over outsourcing concerns, is demanding the return of 1,600 laid-off workers. Local officials in Ottumwa estimate the plant closure will eliminate approximately 400 jobs and over $30 million in payroll.
