John Deere to pay $99M in right-to-repair settlement

Farmers have been fighting John Deere for years over the right to repair their equipment, and this week, they finally reached a landmark settlement.

While the agricultural manufacturing giant pointed out in a statement that this is no admission of wrongdoing, it agreed to pay $99 million into a fund for farms and individuals who participated in a class action lawsuit. Specifically, that money is available to those involved who paid John Deere’s authorized dealers for large equipment repairs from January 2018. This means that plaintiffs will recover somewhere between 26% and 53% of overcharge damages, according to one of the court documents—far beyond the typical amount, which lands between 5% and 15%.

The settlement also includes an agreement by Deere to provide “the digital tools required for the maintenance, diagnosis, and repair” of tractors, combines, and other machinery for 10 years. That part is crucial, as farmers previously resorted to hacking their own equipment’s software just to get it up and running again. John Deere signed a memorandum of understanding in 2023 that partially addressed those concerns, providing third parties with the technology to diagnose and repair, as long as its intellectual property was safeguarded. Monday’s settlement seems to represent a much stronger (and legally binding) step forward.

Ripple effects of this battle have been felt far beyond the sales floors at John Deere dealers, as the price of used equipment skyrocketed in response to the infamous service difficulties. Even when the cost of older tractors doubled, farmers reasoned that they were still worth it because repairs were simpler and downtime was minimized. $60,000 for a 40-year-old machine became the norm.

A judge’s approval of the settlement is still required, though it seems likely. Still, John Deere isn’t out of the woods yet. It still faces another lawsuit from the United States Federal Trade Commission, in which the government organization accuses Deere of harmfully locking down the repair process.

It’s difficult to overstate the significance of this right-to-repair fight. While it has obvious implications for the ag industry, others like the automotive and even home appliance sectors are looking on. Any court ruling that might formally condemn John Deere of wrongdoing may set a precedent for others to follow. At a time when manufacturers want more and more control of their products after the point of sale, every little update feels incredibly high-stakes.