John Deere is an American corporation that manufactures agricultural machinery, heavy equipment, forestry machinery, diesel engines, drive-trains used in heavy equipment, and lawn care equipment. It is the world’s largest producer of farm equipment, with more market share than its two largest competitors. It generated around 44 billion U.S dollars in net sales and revenue in 2021. John Deere refuses to allow farmers to repair the equipment that they purchased from the company. The reason is that it wants to control the farm technology data. It requires proprietary software and tools to complete any repair, forcing farmers to use its authorized dealers and technicians. Farmers have traditionally had the ability to fix and maintain their own machinery. However, John Deere has monopolized the market for repair and maintenance services of its agricultural equipment. The cost of repairing is very high, which pushes farmers to sell their used tractors on the secondary market in parts because they are easier to repair than modern tractors.
Another sign of monopoly is the repair policy of the company. John Deere puts cuffs on its customers when it comes to repair and maintenance. Customers are not allowed to repair the equipment on their own nor at other unofficial dealers. There is also a place for rent-seeking. Large monopoly profits give the firm's incentive to spend large sums of money to gain and protect monopoly power. There have been nearly a dozen efforts to create laws protecting the right to repair, but none of them have passed. In my opinion, in order to maintain its monopoly power, John Deere spends some resources on lobbying. By collecting data about people who use their machinery, the company can predict the approximate price that consumers are willing to pay. In my view, the manufacturer can overcharge some of the customers because they know their evaluation.
