FTC, USDA Seek Comment on Farm Equipment Market Practices

he Federal Trade Commission and the US Department of Agriculture launched an inquiry into the agricultural equipment market, including potential anticompetitive conduct.

The public inquiry, announced Wednesday, seeks to address a “growing number of complaints” from farmers that they “face other barriers to acquiring agricultural equipment and the services required to keep equipment operating.”

Shares in Deere & Co. extended declines to as much as 5.7%, while rivals AGCO Corp. and CNH Industrial NV tumbled 8.4% and 7.3%, respectively. Caterpillar Inc. shares fell as much as 6.4% intraday.

The price of machinery has been one of many financial stressors for farmers, especially as elevated interest rates make such investments even costlier. Farmers have pulled back on purchasing new equipment in recent years amid weak crop prices, weighing on the sales of machinery manufacturers including Deere.

The latest move is part of the FTC’s “work to preserve competition in the agricultural sector,” according to the release. That includes a July settlement with Deere, which resolved a lawsuit that alleged the company unlawfully limited the ability of farmers and independent repair providers to service the company’s farm equipment.

Photo: An employee assembles engines at a Caterpillar manufacturing facility in Sequin, Texas. Photographer: Callaghan O’Hare/Bloomberg