John Deere to close Ottumwa, Iowa plant by fiscal year 2028

John Deere announced Wednesday that it will shut down its factory in Ottumwa, Iowa, by the end of fiscal year 2028, relocating windrower production to Des Moines by 2027 and round baler production by the end of fiscal 2028, WGEM reported. The company framed the move as part of sweeping changes to its manufacturing operations across North and South America, driven by what it called “changes in customer demand.”

The closure lands on a community that has built its identity around the plant for generations. About 300 people currently work at the Ottumwa facility, according to union representatives speaking to Tri-State Trusted News, as reported by KTVO. City officials estimate the loss at roughly 400 jobs and more than $30 million in annual payroll, plus about $100,000 a year in economic initiatives the company has provided.

Deere Relocates Machinery Production Sites

The transition is staged over two years. Windrower production shifts from Ottumwa Works to Des Moines Works by the end of fiscal year 2027, KTVO reported. Round baler production follows by the end of fiscal year 2028, and once that transition completes, Deere intends to close the Ottumwa location entirely.

John Deere fechará fábrica em Ottumwa

The Ottumwa shutdown is only one piece of a wider reshuffle. KCCI reported that production of Hagie STS sprayers will move from Clarion, Iowa, to a Deere factory in Thibodaux, Louisiana, with manufacturing operations at the Clarion plant ending by fiscal year 2029. Small planter production will move from Moline, Illinois, to Deere’s facility in Paton, Iowa, and sugar cane harvester production will shift from Louisiana to Catalão, Brazil, in fiscal year 2029.

The Company’s Case for Consolidation

Deere’s press release, as carried by KCCI, says the changes “reaffirm Deere’s commitment to U.S. manufacturing by aligning production capacity with regional customer demand and advanced manufacturing capabilities.” The company argues that concentrating investment in modern, high-use facilities will preserve and expand critical U.S. manufacturing capabilities and support American manufacturing jobs.

John Deere to close Ottumwa, Iowa plant by fiscal year 2028 — Photo: ktvo.com

That framing sits awkwardly next to another announcement from just last week: Deere called back 275 laid-off workers to its Waterloo operations and planned to hire 400 more people across factories in eastern Iowa, KCCI reported. So the same company is expanding in some Iowa cities while emptying out others.

“It is disappointing to hear the news of John Deere making a transition that will close the Ottumwa Works plant. John Deere has been part of Ottumwa and a piece of our identity for a long time.” — City of Ottumwa statement, as released Wednesday afternoon and reported by KTVO

What the City Says the Loss Costs

The City of Ottumwa’s statement, released Wednesday afternoon, puts hard numbers on the blow: approximately 400 jobs lost, payroll losses above $30 million, and the end of roughly $100,000 in annual economic initiatives from the company. The city also said it has been working with the University of Iowa to study the impact and recovery needed when a large employer leaves, calling that study invaluable through the transition.

Deere said it plans to close its Ottumwa plant by the end of FY2028 and "end manufacturing operations" at its Clarion facility. https://t.co/7q5H3kuo8H

— https://x.com/wqad/status/2118034055169966295

Deere’s foundation is stepping in with money: the John Deere Foundation has committed nearly $1 million to support both Ottumwa and Clarion over the next three years, and plans to continue financial assistance to both communities over the next decade, according to the city’s statement. Deere also said it will engage with employees, union representatives, local leaders, and community stakeholders during the transition, and is committed to identifying the best future use for the Ottumwa and Clarion sites, KTVO reported.

Ottumwa’s leaders pointed to other employers already anchoring the local economy — JBS, Ottumwa Regional Health Center, and Indian Hills Community College — and said the city has already begun work to attract new industry. “Ottumwa is resilient and we will care for the families of Ottumwa that are impacted,” the city statement said.

Deere bringing back 275 Waterloo workers, hiring hundreds more — Photo: kcci.com

Ottumwa Prepares for Phased Plant Closure

The plant does not close overnight. Production ramps down in phases through fiscal 2028, giving workers, the city, and the site’s future planners a window — though a finite one — to plan. The city has already connected affected families to resources like Iowa Workforce, Indian Hills Community College, and Small Business Development Centers, according to its statement. What remains open is what, if anything, will occupy the Ottumwa Works site once Deere leaves, and whether the “future company” the city referenced will materialize.