In the state of North Dakota, the John Deere dealership network is comprised of independent dealerships. However, these companies are not permitted to compete with Deere dealers. Those who run independent dealerships must sign an agreement that states that they are not authorized to work with Deere. In the case of the Dakota Farm Equipment building fire, a small fire department was sent to the scene to assist. The firefighter’s efforts were impeded by cold temperatures.
John Deere Dealers In North Dakota
John Deere dealer’s network of independent dealerships is “not permitted through their agreements” with Deere
The plaintiffs in a proposed class action lawsuit against the John deere dealer have alleged that Deere intentionally monopolized the agricultural equipment repair and maintenance market. The lawsuit alleges that John Deere dealerships “cornered” the market by restricting their access to information and software required for repairs and service. As a result, these dealers have been able to achieve supra-competitive profits in the agricultural equipment repair market.
Farmers are suing Deere to recover the costs of repairs that were made by independent dealerships, which were not authorized by Deere. Farmers have spent tens of thousands of dollars on John Deere repairs, but the equipment won’t run unless the software is approved by Deere. The plaintiffs argue that this practice is unfair and illegal.
The lawsuit claims that John Deere intentionally monopolized the agricultural equipment repair and maintenance market by restricting independent dealers. Forest River Farms owns five John Deere tractors and two combines. The company has declined to comment on the allegations. A representative for Forest River Farms declined to comment on the matter. Although Forest River Farms owns two tractors and five combines from Deere, the company declined to comment.
According to the lawsuit, the majority of Deere dealerships are owned by a single ‘Big Dealer’ with five or more locations. RDO Equipment and Brandt Holdings are the largest two chains in the US, with 32 locations in nine states. While John Deere does not directly own its independent dealerships, they are affiliated with them.
In the future, farmers will pay 150 to $180 per hour for Deere tractor repair services. However, this trend will not be completely eliminated. In the meantime, it will continue to grow as the number of independent dealerships decreases, but farmers will be forced to pay for those services. As a result, the price of Deere tractor repairs will continue to rise.
The class action lawsuit alleges that Deere has created an illegal monopoly over agricultural equipment repair. Furthermore, Deere has intentionally denied independent repair shops access to tools and software required for repairing their equipment. The lawsuit alleges that Deere monopoly is unconstitutional because it “ties” farmers to Deere-authorized service centers.
Cost of repairs
The lawsuit alleges that John Deere dealers charged farmers excessive fees for repairs. In fact, Deere’s repair policy blocks 2% of all tractor repairs, which puts a farmer’s equipment in a death knell mode. Since most farmers don’t want to spend money on modifying their John Deere tractors, the manufacturer’s repair policy isn’t surprising. Despite the lawsuit, Deere has already made some concessions. For example, service manuals are available. Another major concession: Deere’s lawsuit is based on the fact that the company is battling 5 antitrust lawsuits in the process.
While it’s true that Deere’s customer service representatives don’t charge customers for routine maintenance, they are still expensive. The company says that, by 2021, farmers will spend $150-$180 an hour for Deere repairs. But, if you’d prefer to save money, the company offers self-repair solutions. A new initiative by the company offers software that farmers can use to make repairs themselves. While the software allows owners to perform basic repairs, it’s still not as advanced as those performed by certified Deere technicians.
The lawsuit alleges that Deere has unfairly monopolized the repair services market for Deere brand agricultural equipment. The lawsuit is seeking damages for farmers who repaired their equipment through Deere from January 12, 2018 to the present. In the past, farmers could either repair their John Deere equipment on their own or bring it to a local independent repair shop. But since the software used in Deere equipment is vital to their functionality, owners can’t just take their equipment to any local shop.
The company’s repair restrictions put independent dealers in a dangerous position of dependency on the company and drive them out of business. Farmers in rural areas like Montana had access to three family-run dealerships within an hour’s drive. Now, their nearest dealer is four hours away. The problem isn’t so much the cost of the products, but rather how they are repaired. The company is aiming to improve its repair procedures and preserve the Deere brand.
In addition to unfair pricing, the company has not addressed the important moving parts of the deal. Until these issues are addressed, the deal cannot be improved. This issue is a real problem for farmers and must be solved. While many argue that the issues are IP protection, it is clear that the farmers are not stealing John Deere’s intellectual property. They are simply trying to clear some codes. The company needs to understand that farmers are not trying to steal intellectual property, but are seeking fair prices and a fair deal.
If you own a John Deere tractor, you have a responsibility to keep up with maintenance. If you don’t know how to do basic maintenance, a repair may cost you thousands of dollars. John Deere dealers can provide assistance with maintenance programs and preventative measures. They can also offer advice on how to properly care for your John Deere tractor. The cost of repairs for a John Deere tractor is one of the biggest expenses a farmer must face.
Four John Deere dealerships in North Dakota are merging, creating one of the 15 largest in the country. The new dealerships include three owned by Kibble Equipment, two by Schuneman Equipment, and one by Larson’s LLC. In a letter to customers posted to the dealerships’ websites, the four companies say the merger brings stable neighboring John Deere dealerships together and will increase their services.
Founded in 1957, True North Equipment is a four-store John Deere dealer network in the northern Red River Valley. The company has been shifting away from traditional store managers to focus on training. In fact, it is planning to build a corporate headquarters, called the True North Resource Center, by December 2013. The building will be a nerve center for 120 employees and include functional management of departments. True North Equipment is a profitable business, with annual sales over $170 million.
The number of John Deere dealerships in North Dakota has decreased over time. While in 2007 there were 2,984 John Deere dealerships, that number has dropped to 1,544 by 2021. Of the 144 non-owned dealerships, only four are owned by big dealers with five or more locations. There are three large dealership groups, however: Ag-Pro Companies, United Ag and Turf, and C&B Operations. Other smaller dealership groups include Greenway Equipment, Van Wall Group, and Quality Equipment.