Deere's Tractor Repair Monopoly Cost Farmers $4.2 Billion a Year. The FTC Just Ended It.
Summary
The FTC's own complaint found Deere held 100% market share in repairs that need its full diagnostic tool, forcing farmers to pay dealer mechanics $58.90 more an hour than independent shops -- a restriction a 2023 survey put at $4.2 billion a year nationwide. On July 8, 2026, the FTC and five states signed a 10-year settlement forcing Deere to open those tools, three months after Deere agreed to pay farmers $99 million in a separate class action.
A monopoly the could measure
The mechanism was simple. Deere's full diagnostic and repair tool, called Service ADVISOR, could clear fault codes, reprogram electronics, restart a machine after an emissions shutdown, and pull the technical manuals needed to do any of it. A weaker tool, Customer Service ADVISOR, was sold to farmers and independent shops — but per the 's complaint it "is incapable of doing all repairs." The result, the complaint alleged, was that Deere controlled who could fix a broken Deere tractor and priced accordingly.
View data as table
| Independent mechanic | $89/hr | survey average |
|---|---|---|
| Deere-authorized dealer | $148/hr | survey average |
| Gap | $58.90/hr | per U.S. PIRG/NFU executive summary |
"When I, or my independent mechanic, have the know-how and the time to fix my equipment myself, every extra dollar I have to pay the dealer mechanic comes directly out of my profits," Jared Wilson, a Missouri farmer, told U.S. PIRG Education Fund and the National Farmers Union for their 2023 survey. Under the July 8 settlement, Deere must give farmers and independent repair providers the same repair resources — fault codes, reprogramming, limp-mode resets, technical manuals — that it gives authorized dealers, "on fair and reasonable terms," for the next 10 years, under and state court supervision. Dealers are barred from retaliating against customers who use independent repair instead. "Today's settlement enables farmers to do what they've done for generations — fix their own tractors and other farm equipment — without having to pay an authorized John Deere dealer to do it for them," FTC Bureau of Competition Director Daniel Guarnera said in the agency's announcement. Illinois, Arizona, Michigan, Minnesota and Wisconsin joined the as co-plaintiffs; the order was filed in the U.S. District Court for the Northern District of Illinois.
What the restriction actually cost
The 's case establishes market structure — a share number, a legal violation. It doesn't put a dollar figure on what farmers paid for it. That number comes from a separate, independent source: a 2023 survey by U.S. PIRG Education Fund and the National Farmers Union, which asked 53 farmers across 14 states to track their actual repair costs, labor hours and downtime. The surveyed farmers lost an average of $3,348 a year to downtime waiting on dealer repairs and paid $1,328 a year in extra labor costs from the dealer rate gap — $4,676 per farmer, per year. The report's own caveat applies here too: this is a 53-farmer sample extrapolated nationwide, not an agency census, so treat the total as an estimate, not a precise account.
View data as table
| Downtime & crop loss (est.) | $3.0B/yr | 71% of total |
|---|---|---|
| Dealer labor-rate markup (est.) | $1.2B/yr | 29% of total |
| Total estimated annual cost | $4.2B/yr | 100% |
If every U.S. farmer running Deere equipment faced similar restrictions, the survey's authors estimated the national toll at $3 billion a year in downtime and crop loss and $1.2 billion a year in the dealer labor-rate markup — $4.2 billion a year combined. Fifty-three percent of the surveyed farmers said they had actually lost crop or livestock to a repair-related breakdown; another 26% said they came close. Set against that annual toll, the $99 million private class-action settlement — covering farmers who paid Deere dealers for large-equipment repairs from January 2018 forward, filed April 6, 2026 in In re Deere & Company Repair Services Antitrust Litigation (MDL No. 3030, Case No. 3:22-cv-50188, N.D. Ill.) and still awaiting a judge's approval — comes to about 2.4% of a single year's estimated $4.2 billion toll, before attorneys' fees and administrative costs are deducted and before what remains is divided among an eight-year class of farmers.
Colorado passed the first state agricultural right-to-repair law (HB23-1011) in 2023, and more than a dozen states have since introduced similar bills. Deere's settlement with the does what none of those state laws could alone: it applies nationwide, for a full decade, under a federal court's continuing jurisdiction.
The takeaway
- The didn't have to estimate the monopoly — Deere's own tool distribution proved it. A 100% market share in full-diagnostic repairs is not an inference from prices; it's a direct description of who had the software.
- The dollar cost predates the fix by years. The $4.2 billion-a-year estimate is from a 2023 survey; the settlement that addresses it didn't arrive until July 2026.
- The settlement fund is a fraction of the annual toll. $99 million is about 2.4% of one year's estimated $4.2 billion cost, before legal costs and an eight-year class divide it further — the real relief is the 10-year structural fix, not the payout.
The $4.2 billion figure is a survey-based national extrapolation from 53 farmers in 14 states, not a government census of actual repair spending; it is presented here as the best available independent estimate, clearly labeled as such, alongside the 's separately documented 100% market-share finding and the court-recorded $99 million settlement.
Sources
- Federal Trade Commission, press release, , States Secure Settlement with Deere & Company, Advancing Farmers' Right to Repair (July 8, 2026) — terms of the 10-year stipulated order, the five co-plaintiff states, and the Bureau of Competition Director's statement. ftc.gov
- Federal Trade Commission, press release, , States Sue Deere & Company to Protect Farmers from Unfair Corporate Tactics, High Repair Costs (January 15, 2025) — the original complaint, including the finding that Deere held 100% market share in repairs requiring its fully functional tool. ftc.gov
- U.S. PIRG Education Fund & National Farmers Union, Out to Pasture: Repair Restrictions Lead to Tractor Downtime and High Costs (April 2023) — the 53-farmer, 14-state survey behind the $58.90/hour dealer labor-rate gap, the $3,348/farmer downtime loss, the $1,328/farmer labor markup, and the $4.2 billion national extrapolation. PDF downloaded and text-verified directly against server byte count. publicinterestnetwork.org
- Capital Press, John Deere agrees to pay $99 million to settle right-to-repair antitrust suit (April 7, 2026) — reporting on the proposed $99 million private class-action settlement, case name and number (MDL No. 3030, Case No. 3:22-cv-50188, N.D. Ill.), and class period. capitalpress.com
- Colorado General Assembly, HB23-1011, Consumer Right To Repair Ag Equipment (2023) — the first state agricultural right-to-repair law, cited for context on the pre-existing state legislative landscape. leg.colorado.gov
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A tractor built in the last decade cannot be fully repaired without software. Fault codes need clearing, replacement parts need "pairing" to the machine's electronics, an engine stopped in emissions "limp mode" needs a reset — and for years, Deere & Company made the only software tool capable of all of it available to one group: its own authorized dealers. The FTC's complaint, filed January 15, 2025, alleged that arrangement let Deere "maintain a 100% market share and charge higher prices, via its network of authorized dealers, for all repairs that require the fully functional tool." On July 8, 2026, that case ended in a settlement. It arrived three months after a separate, private lawsuit already cost Deere $99 million.