Deere & Co., the farm equipment manufacturer more widely known as John Deere, has put forth a 10-year, $20-billion capital investment program for its U.S. manufacturing operations, with the aim of promoting the development of new products and adopting more advanced manufacturing capabilities.
Like some automakers adjusting to U.S. tariff policies, Deere is working to adapt its global manufacturing strategy to minimize the financial burden. With its Q3 2025 earnings report, the company warned that import tariffs could tax its revenues by as much as $600 million for the full fiscal year.
“We think there’s positive tailwinds from both what we see in the trade deals, and we think there are positive tailwinds from what we see in tax policy,” according to Cory Reed, president of Deere & Co.'s worldwide agriculture and turf division for production and precision agriculture in the Americas and Australia.
The new investments follow a cost-saving downsizing across several Deere manufacturing locations in 2024.
While Deere did not itemize all of its planned capital investments, one will be a $70-million project to build a new, 380,000-sq.foot factory in Kernersville, North Carolina, for small excavator assembly. That is a product line formerly manufactured in Japan by Hitachi Ltd.
“We remain committed to delivering solutions that address our customers’ current needs while also laying the groundwork for future growth,” Deere & Co. CEO John May stated in the Q3 report. “The positive outcomes we’re enabling reinforce our confidence in Deere’s future despite near-term uncertainty.”
Among the investments detailed by Deere in its announcement are a $199-million program at the Harvester Works in East Moline, Ill., to update manufacturing space and introduce advanced production equipment for the John Deere X9 combine. Nearby in Moline, the John Deere Seeding plant underwent a $10-million, 60,000-sq.ft expansion to improve the workspace and visitor center.
Deere also is expanding a Des Moines, Iowa, plant in a more-than-$40-million program to improve assembly and testing for John Deere See & Spray technology – a system that uses cameras, processors, and artificial intelligence to identify and target weeds in fields, spraying herbicides only on weeds to save costs and reduce herbicide usage.
At the Strafford, Mo., the Reman Core Center – where used machinery components including engines, fuel injection systems, and turbochargers are remanufactured to like-new condition – 120,000 sq.ft of work space as added in a $13.5 million project.
In Greeneville, Tenn, $15 million is targeted to update the manufacturing space and introduce new production programs for John Deere lawn equipment.
"We look forward to carrying forward our founder’s legacy of ingenuity as we continue building and investing in America," Reed declared a broadcast interview. "We were born here, and we’re here to stay."
