Farms.com Home   Ag Industry News

U.S. Justice Department trying to stop Deere from purchasing Precision Planting

Deal was originally announced in November 2015

By Diego Flammini
Assistant Editor, North American Content
Farms.com

The United States Justice Department is suing John Deere in an attempt to block the organization from purchasing Precision Planting from Monsanto.

This deal had originally been announced by both companies in November 2015.

The Antitrust Division of the Justice Department said the transaction would combine the only two significant American providers of high-speed planting systems and deny farmers the benefits of competition.

John Deere

The department estimates that Deere and Precision Planting hold about 86 per cent of the precision planting market.

“If this deal were allowed to proceed, Deere would dominate the market for high-speed precision planting systems and be able to raise prices and slow innovation at the expense of American farmers who rely on these systems,” Renata Hesse, Acting Assistant Attorney General of the Justice Department’s Antitrust Division said in a release.

Deere disagrees and is challenging the lawsuit.

"The Department of Justice's allegations about the competitive impacts of the transacation are misguided and the companies (John Deere and Monsanto) intend to defend the transaction vigorously against those allegations," Deere said in a release. “The proposed acquisition benefits farmers by accelerating the development and delivery of new precision equipment solutions that help farmers increase yield and productivity.”


Trending Video

90-Day Pause & Lower U.S. Tariffs with China has avoided the “Black Hole.”

Video: 90-Day Pause & Lower U.S. Tariffs with China has avoided the “Black Hole.”


A 90-day tariff pause with China, cutting rates from 145% to 30%, has renewed investor confidence in Trump’s trade agenda. U.S. deals in the Middle East, including NVDA and AMD chip sales, added to the optimism. Soy oil futures rose on biofuel hopes but turned volatile amid rumors of lower RVO targets, dragging down soybean and canola markets. A potential U.S.-Iran deal weighed on crude, while improved weather in the Western Corn Belt is easing drought fears. The U.S. also halted Mexican cattle imports again due to screwworm concerns. Funds are now short corn and adding to long soybean positions after a bullish USDA report.