Deere & Company is moving forward with two new U.S. manufacturing facilities, a $125 million distribution center in Indiana and a $70 million excavator plant in North Carolina, each expected to generate roughly 150 jobs within a year. The company has also recalled 324 U.S. workers since January, after cutting more than 2,100 jobs in Iowa and Illinois in 2024. Yet these investments and rehires represent only a small fraction of the workforce reductions that have taken place across the Midwest, raising questions about the scale of the company's recovery.
Investment Details
The Indiana distribution center will be located in Hebron, covering 1.2 million square feet on 234 acres. State officials expect it to streamline parts deliveries for customers and dealers. The North Carolina excavator plant, in Kernersville, will ramp up production of small excavators and create over 150 jobs. General Manager Steve Brewer noted that the facility, which has been operating since 1988, will now assemble both small and mid-sized models, offering new opportunities for workers.
Recall Numbers in Context
Since January, Deere has recalled 21 employees at Dubuque Works, 20 at Davenport Works, and eight at Coffeyville Works in Kansas, according to KCRG. The total of 324 recalls is modest compared to the 2,167 layoffs reported by Investigate Midwest across facilities in Waterloo, Davenport, Dubuque, Ankeny, Johnston, Urbandale, Ottumwa, Moline, and East Moline. Deere cited challenging market conditions and weaker farmer demand for the cuts.
Financial Performance and Outlook
In its fiscal first quarter, Deere reported net income of $656 million, down from $869 million a year earlier, though global net sales and revenue rose 13% to $9.61 billion. CEO John May pointed to signs of recovery in construction and small agriculture demand, and the company raised its fiscal 2026 net income outlook to $4.5 billion to $5.0 billion. However, Deere warned that the large ag market in the U.S. and Canada could shrink by 15% to 20% this year, and it anticipates about $1.2 billion in pre-tax tariff costs in fiscal 2026.
Industry Pressures
The broader farm equipment sector remains under pressure. According to the Association of Equipment Manufacturers, U.S. farm tractor sales fell 9.1% in March year-over-year, while combine sales dropped 25.3%. Curt Blades, AEM senior vice president, described the environment as "overall softness in the Ag economy." Rivals are also feeling the pinch: CNH Industrial expects its agriculture segment sales to be flat to down 5% in 2026, and AGCO projects a decline in North American large ag equipment sales.
Strategic Context
Deere is linking the new plants to a $20 billion, decade-long U.S. manufacturing initiative. Chairman and CEO John May highlighted the projects as evidence of the company's commitment to domestic production. Yet the new facilities do little to offset the layoff math. For workers in Iowa and Illinois, the key questions remain which plants will get new lines, how much work will return, and whether the machinery slump has truly bottomed out.
