In recent news, John Deere has announced plans to cut approximately 800 jobs at plants in Iowa and Illinois. This decision comes after the company revealed last month that it would be moving the production of its skid steer loaders and compact track loaders from Dubuque to Mexico by the end of 2026.
The agricultural economy is currently facing challenges such as a predicted 25% drop in farm income this year compared to last year. The company attributed these job cuts to rising manufacturing costs and a slowdown in new ag equipment sales due to lower crop prices. Iowa Secretary of Agriculture Mike Naig expressed concern about these layoffs and relocations, stating that anytime jobs are being lost or moved out of the state or country, it is worrisome and important to understand the reasons behind it.
Deere will be eliminating over 200 jobs at its Davenport plant, 99 jobs in Dubuque, and more than 500 jobs in East Moline, Illinois by the end of August and September. Earlier this year, the company announced over 800 job cuts at other facilities in Waterloo, Ottumwa, and the Des Moines metro. Naig noted that these economic challenges are not confined to just the ag equipment sector but also affecting other industries such as meat processing and manufacturing.
The secretary emphasized the importance of supporting agriculture and manufacturing as key economic drivers in the state. He stated that addressing these challenges faced by these sectors is crucial for their continued growth and success.
