In response to a Justice Department lawsuit, Deere and Co., the world’s largest farm equipment maker, says its purchase of a competitor, Precision Planting, will expand farmers’ ability to update their planters and will not reduce competition for planter sales. The Justice Department filed an antitrust lawsuit in federal court in Chicago to block the transaction in late August.
The Justice Department says Deere and Precision Planting, owned by Monsanto, account for at least 86 percent of sales of high-speed seed planters, which it predicts will become the industry standard. High-speed planters allow farmers to work at up to 10 mph, twice as fast as earlier planters.
In a response filed in federal court, Deere said high-speed planters should be considered part of the larger market for seed planters because planting speed is only one factor when trying to hold down costs. “Deere’s core business in providing original equipment,” said the court document, while Precision Planting’s units could be retrofitted onto earlier-model planters from Deere and other makers.
The response referred to an agreement Deere announced on Wednesday, allowing Ag Leader Technology, an Iowa maker of precision farm equipment, to manufacture and sell Precision Planting’s “SpeedTube” and related planting equipment. “Deere’s competitors and their customers will continue to have access to Precision Planting’s SpeedTube technology for their planters,” said Deere, arguing that its purchase of the Monsanto subsidiary will result in robust competition in the planter sector.