Deere Issues Statement on DOJ Lawsuit Blocking Precision Planting Deal

The agricultural industry will benefit from Deere’s acquisition of Precision Planting LLC (“Precision Planting”) through faster and better innovation focused on helping agricultural commodity growers increase crop yields and operate more efficiently. No competition will be lost as a result of the transaction. In fact, competition will intensify, according to a recent press release from Deere and Co.

Rather than consider these competitive benefits, Plaintiff’s challenge stems from a competitor’s fears of enhanced competition—not the best interests of the agricultural community. Tellingly, the Department of Justice, pursuant to procedures under the Hart-Scott-Rodino Act, long ago cleared this transaction to proceed, only to change its mind and bring this lawsuit when a Deere competitor protested. However, it is a fundamental maxim that antitrust laws are meant to protect competition, not competitors. Growers deserve the benefits of this transaction and the increased innovation, competition, and consumer choice that a combination of Deere and Precision Planting will create.

Precision Planting manufactures and sells component products that can be installed on growers’ existing equipment—including planters. These products are designed to help growers better execute their in-field jobs using the equipment they already own. Precision Planting’s agronomically focused and innovative team will boost Deere’s capacity to help growers across a wide range of crop production steps, beyond simply increasing planting speed.

Today’s grower is increasingly focused on lowering their production costs per bushel of crop, and they do this by maximizing yields and managing costs. Planting speed is only one factor growers consider when looking for ways to lower their production costs. Growers also look to a wide range of other available options to meet their own unique farming needs and optimize their yield throughout the entire crop production cycle; from planning their crop, preparing the soil, planting the seed, nurturing and protecting the plants, and harvesting. Deere’s core business is providing original equipment solutions addressing these in-field tasks.  Combining the efforts of Deere and Precision Planting will drive innovation across all of these tasks to help growers more quickly lower their production costs and remain competitive in a global commodities market.

Deere also maintains a highly sophisticated dealer distribution channel. Together, Deere and its dealers have made advanced new capabilities available through local distribution networks that provide differentiated support and choices to growers in deciding which options will best help them lower their production costs. The transaction will increase the number of retail outlets where growers can purchase Precision Planting components by adding Deere’s dealer channel to Precision Planting’s existing network. This combination creates a unique opportunity to bring Precision Planting’s innovative components to more growers, in more geographies, more quickly, across a broader range of in-field jobs.

In addition to enhancing Deere’s innovation capabilities and portfolio to better serve growers, the transaction increases grower choice and creates value with Ag Leader Technology, Inc. (“Ag Leader”), a recognized innovator in the field of agricultural equipment. As part of the transaction, Ag Leader will gain the right to manufacture, sell, and even improve upon Precision Planting’s SpeedTube and other components. Ag Leader’s capabilities and extensive distribution network will ensure an additional independent and competitive channel for growers and OEM’s to purchase Precision Planting’s SpeedTube and other components, and Ag Leader’s track record of innovation will provide a new path for continued improvement in these Precision Planting products.

Post-transaction, Deere’s ExactEmerge planter technology will continue to provide growers seeking to buy new planters as well as those that own late-model Deere planters an opportunity to plant with greater precision at faster speeds. Meanwhile, Precision Planting’s products will continue to provide solutions for late-model as well as older Deere planters. And through both existing contractual commitments and Deere’s agreement with Ag Leader, Deere’s competitors and their customers will continue to have access to Precision Planting’s SpeedTube technology for their planters as well. Ultimately, the transaction provides all growers with greater freedom of choice and more independent channels and options to buy Precision Planting components. The transaction will ensure even more robust competition to provide equipment, aftermarket components, and other means to increase growers’ yields and lower costs. In short, the transaction will increase competition and promote consumer freedom by increasing the total number of market players. Restraining this vibrant competition and greater consumer choice in the narrow interest of a particular competitor is not in the public’s interest.

Leave a Reply

One comment on “Deere Issues Statement on DOJ Lawsuit Blocking Precision Planting Deal

  1. Back when this country had more common sense they broke big companies up when the got to big and threatened the competition. Sadly this trend has been ignored by the short sighted nincompoops we have in Washington. The way it is going we will have one of everything one bank, one airline, one retail giant, one insurance company, etc. This country will be changed forever where there is no opportunity for individuals to start their own businesses. It appears the govt wants everyone working for giant companies with pension plans and health care instead of the land of opportunity we once were blessed with. I oppose large merger of any kind in any field and any industry.

Business Management Stories
Sonny Perdue
Business ManagementAg Tech CEOs Weigh In On Trump’s Pick For Ag Secretary
January 20, 2017
With President-Elect Donald Trump’s selection of Sonny Perdue as the new proposed Secretary of Agriculture, it brings a new set Read More
Terry Griffin
Business ManagementUsing High Tech To Make Farm Decisions
January 17, 2017
Raj Khosla, professor of precision agriculture at Colorado State University, challenged farmers to think about how far the technology of Read More
Business ManagementCNH Names Danford Industry Relations Manager
January 17, 2017
Dan Danford has been named Industry Relations Manager, Precision Solutions and Telematics (PS&T), for CNH Industrial, parent company of agricultural Read More
Business ManagementBREAKING: FAA Considering Less Restrictive Commercial Drone Regulations
January 11, 2017
FAA is working toward allowing more freedom for drone operators, and at the same time is working with NASA on Read More
Trending Articles
PrecisionAg.com featured image
ProfessionalsWelcome to the Newly Enhanced PrecisionAg.com
December 29, 2016
Talk a quick look around our website and we hope you’ll notice it’s significantly different as we head into 2017 Read More
Ryan Raguse and Matthew Grassi
ProfessionalsIndustry Executives Talk New PrecisionAg Professional Brand
December 19, 2016
EFC Systems President and CEO Ernie Chappell Myriad Mobile Cofounder and Chairman Ryan Raguse Read More
PrecisionAg Professional logo
Industry NewsMeister Media Debuts PrecisionAg Professional
December 13, 2016
Agricultural technology is accelerating, and precision agriculture is gaining renewed interest across cropping systems. At the same time, growers are Read More
NDSU IoT
Sensors/IoTNew Farming Focused IoT Partnership Announced
December 13, 2016
Infiswift, an enterprise Internet of Things (IoT) platform developer, announces a partnership to develop IoT solutions with Acuitus Ag, an Read More
GVM E-Series cab
Ag Tech GlobalGlobalization And Precision Agriculture
December 7, 2016
Globalization has taken on a negative connotation in some circles in the U.S. in recent months. The lightning rod for Read More
Farmers Edge Truck
Data ManagementFarmers Edge, Trotter Fertilizer Form Partnership To Enhance VRT Programs
November 29, 2016
Farmers Edge, a global leader in precision agriculture and independent data management solutions, has partnered with Trotter Fertilizer, Nebraska’s foremost Read More
Latest News
Sonny Perdue
Business ManagementAg Tech CEOs Weigh In On Trump’s Pick For Ag Secr…
January 20, 2017
With President-Elect Donald Trump’s selection of Sonny Perdue as the new proposed Secretary of Agriculture, it brings a new set Read More
BASF Maglis Grower Tablet
EventsRetailers, Consultants Untangle Software Decision Proce…
January 19, 2017
Today, business and agronomy management software is the engine that facilitates a smooth running ag business. The next software decision Read More
Ag Weather Service
Decision Support SoftwareSciFi in Ag: Will Amazon’s Alexa Control the Fami…
January 19, 2017
*Article Notes: This monthly column takes some crazy sounding ideas and applies them to the field of Ag Tech. The Read More
Data ManagementNew Partnerhship Between AgIntegrated, CDMS, SeediQ Wil…
January 18, 2017
AgIntegrated, Inc. (AGI), CDMS, Inc. and SeediQ announce a partnership to develop, promote, and sell a single-source crop input reference Read More
Corn Field Sunset
Ag Tech GlobalAg Technology Among Focus Areas For Kohli Impact Invest…
January 18, 2017
Tej Kohli, a serial entrepreneur, global businessman and philanthropist, has announced he has earmarked an initial $25 million USD, through his Read More
Terry Griffin
Business ManagementUsing High Tech To Make Farm Decisions
January 17, 2017
Raj Khosla, professor of precision agriculture at Colorado State University, challenged farmers to think about how far the technology of Read More
Decisive Farming My Farm Manager mobile app
Ag Tech GlobalLeading Canadian Farming Co-op Brings In New Tech To Bo…
January 17, 2017
Co-op, one of the largest agricultural retailers in Western Canada, is partnering with farm management company Decisive Farming to provide Read More
Business ManagementCNH Names Danford Industry Relations Manager
January 17, 2017
Dan Danford has been named Industry Relations Manager, Precision Solutions and Telematics (PS&T), for CNH Industrial, parent company of agricultural Read More
Australian Harvest
Ag Tech GlobalAustralian Precision Agriculture Market, Forecast To 20…
January 13, 2017
Research and Markets has announced the addition of the “Australian Precision Agriculture Market, Forecast to 2020” report to their offering. Read More
Norris planter
Innovation SeriesCompelling Consultant Panel Kicks Off Next Month’s Prec…
January 12, 2017
Jeremy Wilson, Technology Specialist at CropIMS and renowned precision expert, leads a panel of top precision consultants to kick off Read More
Data ManagementProspera Selected for Top 100 Artificial Intelligence R…
January 11, 2017
CB Insights today selected Prospera to the prestigious Artificial Intelligence 100 list (“AI 100”), a select group of emerging private Read More
Business ManagementBREAKING: FAA Considering Less Restrictive Commercial D…
January 11, 2017
FAA is working toward allowing more freedom for drone operators, and at the same time is working with NASA on Read More
DronessenseFly, Agribotix Combine eBee SQ and FarmLens Offeri…
January 11, 2017
Agribotix has partnered with senseFly to offer a new combined solution for professional users. This technology solution combines the top Read More
Sentera software
DronesSentera Announces NDVI Livestream Capabilities for Doub…
January 10, 2017
Sentera today announced the upcoming release of LiveNDVI Video: livestreamed NDVI video via Sentera’s Double 4K sensor. This breakthrough technology Read More
Young Corn Field
Ag Tech GlobalEurocontrol To Commercialize Precision Agricultural Ini…
January 9, 2017
Eurocontrol Technics Group Inc., a Canadian public company specializing in the acquisition, development and commercialization of innovative test and measurement Read More
Corn Field
Data ManagementWaypoint Analytical, Highland Precision Ag Announce Str…
January 9, 2017
Waypoint Analytical (WP), based in Memphis, TN, and Highland Precision Ag (HPA), based in Mulberry, FL, are pleased to announce Read More
Western Canada Wheat field
EventsSixth Annual Precision Ag Summit Set for January 16-17 …
January 4, 2017
The 6th annual Precision Ag Summit will be held Jan. 16-17, at the North Dakota Farmers Union Conference Center in Read More
University of California Merced Professor Stefano Carpin
Hort TechRobots, People Working Together To Save Water, Enhance …
January 3, 2017
A nearly $1 million grant from the USDA is helping University of California researchers refine collaborative robotic technology that could Read More