Ag Equipment Makers Face Federal Inquiry, Seed Markets Next

The U.S. Department of Agriculture and Federal Trade Commission have launched a joint public inquiry into potential anticompetitive practices in agricultural equipment markets, according to The Wall Street Journal.

The agencies said the effort is in response to complaints from farmers about barriers to purchasing equipment and getting repair services. Progressive Farmer reported regulators are seeking information on whether manufacturers or dealers are restricting competition and how those practices may affect farmers, independent repair shops and rural communities.

The announcement weighed on equipment manufacturers’ stocks. According to Investing.com, shares of Deere & Company fell 5%, while CNH Industrial and AGCO Corp. declined 5.7% and 5.9%, respectively.

In addition, Iowa Capital Dispatch reported that USDA is expanding cooperation with the Department of Justice to investigate competition in seed markets. The agencies will examine seed pricing, licensing, and other practices as USDA officials raise concerns about rising seed costs for producers.