Shop Talk: Feds Sue to Stop Deere Acquisition

THE U.S. DEPARTMENT of Justice filed a lawsuit to stop Deere & Co. from acquiring the Precision Planting equipment business from The Climate Corp., a subsidiary of Monsanto Co.

According to Reuters, the government claims the proposed deal would mean higher prices for farmers who want to buy equipment for high-speed precision planting. Prosecutors are particularly concerned that Deere is selling both planters and the technology to go on the planters.

“By offering farmers high-speed precision planting retrofit kits at a fraction of the cost of a new planter, Precision Planting posed a formidable challenge to Deere and its profitable sales of new planters,” the Department of Justice stated.

Reuters reports that a Deere ExactEmerge planter that includes components for precision technology sells for about $150,000, while a Precision Planting retrofit kit costs about $30,000.

Deere & Co. and The Climate Corp. signed a definitive agreement for Deere to acquire Precision Planting in November 2015. The companies say they fully cooperated with the Department of Justice’s antitrust review and they plan to contest the lawsuit.

IN OTHER NO-TILL NEWS…

  • Equipment Technologies announced its 2017 Apache model-year sprayers will feature new enhancements, including leak-proof, quick-service Banjo boom manifold fittings and Hypro nozzle bodies. The new Raven Hawkeye application control system will also be an additional option.
  • Little Engine Ventures acquired non-GMO seed company Spectrum Seed Solutions. Scott Odle, Spectrum founder, will remain on as a shareholder.
  • John Deere introduced the ExactApply intelligent nozzle control system. Starting with the 2018 4-Series…
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