Dive Brief:
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Deere & Co’s effort to dismiss lawsuits claiming the tractor giant unlawfully restricted maintenance and repair services was denied by a federal court in Illinois on Monday, allowing "right to repair" claims from more than 17 farmers to proceed.
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U.S. District Judge Iain Johnston said farmers have provided sufficient evidence that Deere tightly controls the repair services market. The complaint “alleges both constitutional and antitrust standing, relevant markets, and all the necessary requirements for each count in the complaint,” he said.
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The lawsuits allege the tractor manufacturer “monopolized” the repair-service market for John Deere brand agricultural equipment with onboard central computers known as engine control units. Farmers have said it's become expensive and more difficult to repair equipment, and are seeking damages for paying for repairs from Deere dealers from Jan. 12, 2018 to today.
Dive Insight:
The ongoing fight with Deere is part of a larger “right-to-repair” movement happening across the U.S. as consumers push to repair goods themselves or select a repair service of their choice — and not be limited to just the manufacturer or manufacturer-approved providers.
The issue covers all types of consumer goods, including cell phones and home appliances. But for farmers in particular, the difference in repairing a tractor themselves and finding an approved dealer in Rural America could make or break the season.
According to Farm Action, a nonprofit organization and advocacy group, farmers are often forced into long travels and wait-times for repairs, which can result in “losses of tens or even hundreds of thousands of dollars in potential yields.”
Across the U.S., four states have enacted “right-to-repair” legislation this year, with pending bills in more than two dozen states. Colorado enacted the first law requiring agricultural equipment manufacturers to provide resources for individuals to repair their own farm equipment.
There are also efforts happening at the federal level, where there is bipartisan support to end cumbersome restrictions on the repair market.
“Agriculture is already a demanding line of work, with tight windows dictating when producers can plant or harvest crops,” U.S. Representative Abigail Spanberger (D-VA) said in a September statement. “When machinery breaks, time is of the essence, and farmers shouldn’t have to wait weeks to get a service appointment.”
Earlier this year, the American Farm Bureau Federation signed a voluntary memorandum of understanding with a number of agricultural equipment manufacturers, including Deere, to strengthen farmers’ rights to repair. However, the effort was met with criticism by the National Farmers Union, saying it “falls short of real repair protections.”
Nathan Proctor, who leads Public Interest Research Group's right to repair campaign, said Deere's complicated software means farmers are still struggling to repair their own equipment despite the MOU.
"I had farmers telling me they installed a new turn signal, but could not get the computer to talk to the charge signal because it was part of the critical safety system," Proctor told Agriculture Dive last month. "And those critical safety systems are only fixable by a dealer, so farmers have to pay $500 for someone to just push a button."
The court's decision to let the case continue marks a win for farmers seeking change.
“The ultimate determination of the claims will likely be a long and expensive process, despite this Court’s goal of bringing this litigation to a just, speedy, and inexpensive resolution,” Johnston wrote. “This order is the first major step on that journey.”
Sarah Zimmerman contributed to this story