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.

Topics:

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
Business ManagementPrecisionAg.com: Top 10 Most Popular Stories in 2017
December 28, 2017
The editors at PrecisionAg.com always get excited putting together our website’s list of the most-read stories of the year. To Read More
Wabash-Valley-Services
Business ManagementWabash Valley Service Co.: Back to the Basics
December 19, 2017
Wabash Valley Service Co. has been at the grindstone on precision agronomy for as long as almost any cooperative service organization Read More
Sentera drone
Business ManagementAgTech Conference of the South Coming to Alpharetta, GA
December 13, 2017
Tech Alpharetta, with the support of the city of Alpharetta, has announced the AgTech Conference of the South to be Read More
Grower-Field-iPad-Connectivity-Photo-Credit-VLab
Business ManagementOpinion: Agtech Boom Is Yet To Come
December 6, 2017
Many agronomists, farmers, and VC groups monitoring the agtech world are proclaiming the startup boom is over. Investments are down, Read More
Trending Articles
John-Deere-Cab-GPS
Data ManagementPrecision Ag Hardware and Software: A Little Off-Season Maintenance Goes A Long Way
January 11, 2018
All service technicians have heard this line. Most often when spring makes its anticipated return to our lives. It is Read More
Anez-Consulting-Paul-Anez-and-Michael-Dunn
Service ProvidersAnez Consulting: Focus On Fertility
January 9, 2018
Central Minnesota features variability aplenty when it comes to soil characteristics and topography, from flat, black expanses rich in organic Read More
Agrishow2017
Americas5 Best Ag Tech Shows in Brazil
January 8, 2018
Brazil continues to demonstrate its potential in agriculture. Several international companies are investing in our country because we have a Read More
Farmer and computer
Service ProvidersPrecision Agriculture Writers Wanted To Join Our Team in 2018
December 10, 2017
About The Opportunity: PrecisionAg.com is looking for people to join our team in 2018 and submit original content to our Read More
Harvested-Corn-Field-Clouds
Data ManagementWeather Services Advance Precision Agriculture
December 4, 2017
Some estimates suggest over half of growers’ activities are impacted by weather conditions, from field workability to fertility management to harvest Read More
Wheat-an-oats-Daniel-X-ONeil
Data ManagementWill Open-Source Finally Unlock Ag Technology’s Potential?
November 28, 2017
To Aaron Ault’s eyes, ag technology right now is something like a walled garden — not unlike the Microsoft of Read More
Latest News
Lee_Brittany
Specialty CropsFlorida Blue Farms Digging Data for Savings and Profit
January 17, 2018
Brittany Lee is no stranger to land management, writes Frank Giles on GrowingProduce.com. She grew up around it, observing her parents Read More
AmericasPrecision Farming Companies to Watch in 2018 (OPINION)
January 17, 2018
My friends, as many of you told me repeatedly throughout the last 12 months, 2017 was an interesting year in Read More
farmer-tractor-ipad
Data ManagementThe Era of Digital Agriculture: Opportunities and Chall…
January 17, 2018
The digital revolution is changing the way agriculture is done. Rapid population growth, changes in market demands, depleting agricultural land, Read More
Data ManagementBlockchain: Making Data Cleaner, More Secure
January 16, 2018
Probably most professionals who deal with business data have at least heard the term “blockchain” bantered about as potentially the Read More
Soybean-field-clouds-Photo-courtesy-of-Earl-R-Shumaker
Data ManagementBetting on Rain? The Accuracy and Reliability of Precip…
January 16, 2018
For you sports junkies out there, if I could prove to you that I can correctly predict winners and losers Read More
center-pivot-irrigation-drop-sprinklers-on-corn
Precision IrrigationFinding Your Precision Ag Mindset
January 15, 2018
A precision mindset is the most important requirement for successful precision ag technology adoption. One of my first VRI (variable Read More
Drone-and-operator-Photo-courtesy-of-Kray-Technologies
DronesCrop Protection Application by Drone: A Q&A with Kr…
January 15, 2018
January is a busy month for agricultural companies. It’s a month that strong sales can set the mood for the Read More
Data ManagementAgGateway Grain Traceability Proof-of-Concept Seeks Ind…
January 15, 2018
AgGateway’s Precision Agriculture and Grain & Feed councils have issued a call for participation for a proof-of-concept initiative in AgGateway’s Read More
John-Deere-Cab-GPS
Data ManagementPrecision Ag Hardware and Software: A Little Off-Season…
January 11, 2018
All service technicians have heard this line. Most often when spring makes its anticipated return to our lives. It is Read More
Corn-Planter
Grower Services & SolutionsCorn Planter: The Train of Consequences
January 11, 2018
It’s always planter season in our shop but now that harvest is done the corn planter is the next piece Read More
Robotics/Labor SaversSmart Ag Announces Driverless Tractor Automation Platfo…
January 11, 2018
An Iowa technology company has unlocked the tremendous potential for automation in agriculture by developing the first cloud-based platform for Read More
Anez-Consulting-Paul-Anez-and-Michael-Dunn
Service ProvidersAnez Consulting: Focus On Fertility
January 9, 2018
Central Minnesota features variability aplenty when it comes to soil characteristics and topography, from flat, black expanses rich in organic Read More
Agrible
Grower Services & SolutionsAgrible to Launch Retailer Services in 2018
January 9, 2018
It’s a new year, which means new market challenges. Full service retailers are searching for ways to differentiate themselves and Read More
jeremy-speaking
Grower Services & SolutionsGrower and Precision Ag Services: Opportunities Lost
January 9, 2018
I often spend time with growers, talking about their operations, and the processes they go through each season to do Read More
Winters-Farming-farm-manager-Alex-Bergwerff-and-Ranch-Systems-marketing-and-business-development-manager-Hylon-Kaufmann
Precision IrrigationInside California Irrigation: Winters Farming
January 9, 2018
As many of us already know, almonds tend to get a bad rap for their water-use efficiency — or some Read More
Sentera software
DronesSentera Offering Elevation Data Mapping Via AgVault
January 9, 2018
Sentera announces the availability of elevation maps within the Sentera AgVault platform, offering agronomists, crop consultants, and growers additional field Read More
Industry NewsRaven, South Dakota State University Link Up: What You …
January 9, 2018
On Tuesday afternoon Raven and South Dakota State University (SDSU) held a press conference on the SDSU campus in Sioux Read More
Agrishow2017
Americas5 Best Ag Tech Shows in Brazil
January 8, 2018
Brazil continues to demonstrate its potential in agriculture. Several international companies are investing in our country because we have a Read More