FTC and USDA Launch Inquiry Into Agricultural Equipment Market

The Federal Trade Commission and the United States Department of Agriculture launched a public inquiry on Wednesday to investigate potential anticompetitive conduct within the agricultural equipment market. The joint effort responds to increasing complaints from farmers who report significant barriers to acquiring machinery and accessing the services required to maintain their equipment.

This investigation follows a July settlement between the FTC and Deere & Co. concerning the unlawful limitation of independent repair services. The announcement caused immediate volatility in the stock market, leading to share price declines for major manufacturers including Deere & Co., AGCO Corp., CNH Industrial NV, and Caterpillar Inc.

The federal inquiry arrives as the agricultural sector faces mounting financial strain. Farmers are currently dealing with elevated interest rates and weak crop prices, factors that have already led to a reduction in new equipment purchases.