John Deere plans to close its Ottumwa Works factory after shifting the plant's windrower and round baler production north to its Des Moines Works facility in Ankeny, a move that could put hundreds of Iowa jobs on the line. The agricultural equipment giant says the production transition will play out over the next two fiscal years before the Ottumwa doors shut for good.
Production Moves First, Then the Plant Closes
Deere plans to move windrower production — the equipment used for cutting hay and grain — from Ottumwa to Des Moines Works by the end of fiscal year 2027, according to the Des Moines Register. Round baler production will follow by the end of fiscal year 2028, per KWQC. Once that transition is complete, Deere plans to close the Ottumwa Works factory entirely, as reported by Radio Iowa.
The company has attributed the shift to changes in customer demand and available manufacturing capacity. The Ottumwa Courier reports that the company cited changes in customer demand and available manufacturing capacity as the reasoning behind the move.
Job Loss Estimates Diverge
How many workers will ultimately be affected depends on who's doing the counting. Ottumwa city officials estimate the closure will cost about 400 jobs, according to the Courier's reporting. Deere itself has offered a lower figure, telling the Iowa Capital Dispatch that at “normal production volumes” approximately 300 people would be impacted by the closures.
Deere said affected employees may receive support that could include internal transfer opportunities, retraining assistance, retention offers, relocation assistance, severance benefits, and career-transition support, the same outlet notes. A company spokesperson also said Deere has been operating far below normal production volumes due to the downturn in the ag economy.
A Rough Year Already for Ottumwa Workers
Wednesday's announcement lands on top of a string of difficult headlines for the Ottumwa plant. Deere executives cited weak demand for farm equipment as the primary factor in several waves of layoffs over the prior year, according to Radio Iowa's earlier reporting. In January 2025, the company notified state officials it would lay off 75 workers from the Ottumwa plant the following month, and Deere had already offered early retirement to more than 100 employees at the facility before that round of cuts. Separately, Deere has been moving mower production from Ottumwa to Mexico, per the same Radio Iowa account.
Other Iowa Plants Also Affected
Ottumwa isn't the only Iowa facility in Deere's restructuring plans. The company also plans to end manufacturing operations at its Hagie factory in Clarion by fiscal year 2029, the Iowa Capital Dispatch reports. And in the next fiscal year, Deere intends to move small planter production from a facility in Moline, Illinois, to a production facility in Paton, Iowa, according to the same report.
The Ottumwa site has deep roots in Deere's history in Iowa — the company purchased the property from Dain Manufacturing in 1911, making it Deere's first manufacturing site in the state. More than a century later, that legacy plant is now slated to go dark as the company consolidates production closer to Ankeny.
