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
Deere R4023 cab
Business ManagementOpinion: Reality vs. Hype in Precision Agriculture
July 6, 2017
I think there is a certain word that can accurately describe much of the precision ag and/or ag tech industry right Read More
Alabama bottomland
Business ManagementGreenPoint AG: Dealing in Ag Tech Down on the Delta
June 5, 2017
Precision-farming veteran Ben Carlisle is the Agricultural Technology Manager for GreenPoint AG, LLC, a retailer with locations in Arkansas, Louisiana, Read More
GPS, Guidance
Business ManagementPromoting Precision Agricultural Innovation in a Risk Averse Marketplace
April 24, 2017
As precision agriculture consultants we constantly are being asked our opinions on where to invest, and how to strategically invest Read More
Business ManagementBionic Leaves: Future Source of Endless Fertilizer?
April 21, 2017
*Article Notes: This monthly column takes some crazy sounding ideas and applies them to the field of Ag Tech. The Read More
Trending Articles
Yield Data Image
Data ManagementYield Data: More Than a Pretty Picture
July 13, 2017
It is mid-July, which, for the Australian cotton industry, means that picking is still going on for some growers. A Read More
BASF Maglis Grower Tablet
ProfessionalsPatience Needed: Lessons for Getting New Tech onto the Farm
July 6, 2017
A popular joke within the tech industry was trotted out at GAI AgTech Week in Boston, MA, speaking volumes about Read More
PrecisionAg Vision Conference
EventsPrecisionAg® Vision Conference: Focused on the Future
June 13, 2017
PrecisionAg® is pleased to announce the return of its PrecisionAg Vision Conference, October 10-12, 2017. Based on overwhelmingly positive response Read More
Gavin Newsom Forbes AgTech-Summit
ProfessionalsAgTech Summit Aiming High for Modern Farming Solutions
June 12, 2017
THRIVE AgTech, in partnership with SVG Partners and Forbes, is hosting the third annual Forbes AgTech Summit June 28-29 in Read More
Quantix Drone Farmer
DronesTop 10 Most Intriguing Technologies in Agriculture
June 3, 2017
This may be a bit of stating the obvious here, but we’ll throw it out there anyways: as much as Read More
Farming iPad
Data ManagementOpinion: ROI or Die in Precision Agriculture
May 12, 2017
The thought of $3.50 corn for the foreseeable future seems pretty disheartening. However, if you look at the precision ag Read More
Latest News
Industry NewsLindsay Corp. Names Dow’s Timothy Hassinger New C…
July 19, 2017
Lindsay Corp. has  announced the appointment of Timothy Hassinger as president and CEO and a member of its board of Read More
InfoAg 2015
Events2017 Awards of Excellence Winners Announced
July 18, 2017
PrecisionAg Institute is pleased to announce its Awards of Excellence winners for 2017. Honorees of this year’s prestigious award are Read More
Interseeding Cover Crops
ProfessionalsA 3-Step Approach to Interseeding Cover Crops
July 18, 2017
As growers continue to search for opportunities to create healthier soils and increase yields, more trusted advisors and farmers are Read More
Rod Weimer and Paul Schrimpf
Excellence AwardsPast Recipients Of The PrecisionAg Awards Of Excellence
July 18, 2017
Since 2007, the PrecisionAg Insititute has sponsored the annual Awards of Excellence program. Here's a list of the past winners. Read More
Data ManagementEFC Announces FieldAlytics, Adapt-N Expanded Integratio…
July 17, 2017
EFC Systems is pleased to announce an expanded integration between its FieldAlytics product and Agronomic Technology Corp’s Adapt-N nitrogen recommendations Read More
Data ManagementOpinion: Benchmarking in Precision Agriculture is Big S…
July 17, 2017
Benchmarking has become a buzzword in precision agriculture recently and before we get too excited with all of the profound Read More
Yield Data Image
Data ManagementYield Data: More Than a Pretty Picture
July 13, 2017
It is mid-July, which, for the Australian cotton industry, means that picking is still going on for some growers. A Read More
Industry NewsQuick Rewind: Ohio Dealer Talks Deere-Precision Plantin…
July 12, 2017
A few weeks ago I took a quick trip south down I-71 to Central Ohio (for you non-Buckeyes, I-71 runs Read More
DronesSentera Launches Versatile Quad Sensor for Drones
July 12, 2017
Fully Customizable Filters on Sentera Quad Sensor Allow for Unique Crop Health Detection Capabilities Sentera introduces the latest update to Read More
Hortau Irrigation Management Software
Sensors/IoTHortau Named Finalist for CogX Artificial Intelligence …
July 10, 2017
Hortau was recently named a CogX Award finalist in the Best Artificial Intelligence Product in Agriculture category. The awards were Read More
Grower Services & SolutionsVantage South Atlantic Announces Mid-South Expansion
July 10, 2017
Vantage South Atlantic announced that it has joined Trimble Agriculture’s global network of independent Vantage partners to provide farmers, advisors, Read More
Ag Retailer and Grower WinField United
Decision Support SoftwareAgronomic Technology Corp Surpasses Daily Nitrogen Reco…
July 6, 2017
Agronomic Technology Corp, a leader in agricultural field modeling for soil, water, crops, and fertilizer, for the first time surpassed Read More
Precision IrrigationDealership Celebrates 25 Years in the Irrigation Game
July 6, 2017
25 years ago, Bobby Kempenich had an idea. An idea to launch a business that combined his knowledge of irrigation Read More
BASF Maglis Grower Tablet
ProfessionalsPatience Needed: Lessons for Getting New Tech onto the …
July 6, 2017
A popular joke within the tech industry was trotted out at GAI AgTech Week in Boston, MA, speaking volumes about Read More
Deere R4023 cab
Business ManagementOpinion: Reality vs. Hype in Precision Agriculture
July 6, 2017
I think there is a certain word that can accurately describe much of the precision ag and/or ag tech industry right Read More
Events2017 agBOT Challenge Winners Announced
July 6, 2017
Driverless robotic machines entered the fields of Gerrish Farms in Rockville, IN in June 2017. Universities and entrepreneurial teams showcased Read More
gomez-featured
ProfessionalsCommitment to Ag Innovation: Q&A with DuPont Pionee…
July 5, 2017
Editor’s note: PrecisionAg.com contributor Amy Wu often writes about women in ag technology. Recently, she interviewed DuPont Pioneer’s Nadilia Gomez, research scientist, Read More
LAP
InternationalLAP and ABPSAP: Advancing Precision Agriculture in Braz…
July 5, 2017
In this article, I would like to highlight two important entities of precision agriculture in Brazil. The first of these Read More