President Donald Trump revealed plans on Tuesday for a new John Deere facility from parent company, Deere & Co. (NYSE:DE) in the United States.
Trump announced the company’s plan during his speech at Clive, Iowa, for a $70 million excavator manufacturing facility in Kernersville, North Carolina.
“This is going to be the only excavator entirely made in the United States of America,” stated Trump.
Following the announcement, John Deere, the farming equipment manufacturing company, confirmed the plan and also announced that it has recently begun building a new distribution center near Hebron, Indiana.
The new facility in Kernersville will strengthen John Deere’s manufacturing operations by using advanced technologies to build industry-leading excavators for the construction sector. The plant will assume production of next-generation excavators that were previously made in Japan.
Both facilities are slated to begin operations within the next year, with the Indiana site benefiting from the state’s skilled workforce and central location to support future expansion.
John Deere stated that it would maintain operations at its main North American Parts Distribution Center in Milan, Illinois, which has been running since 1973 and employs about 1,200 workers.
Deere Faces Tariffs And Price Pressure
The announcement of these new facilities comes after a series of events that have impacted the agricultural machinery industry. In November 2025, Deere & Company guided to a worse-than-expected fiscal 2026 outlook and warned of a $1.2 billion tariff hit in fiscal 2026, overshadowing a fourth-quarter earnings beat. Investor Relations Director Josh Beal later explained that this amounts to a $600 million increase over 2025 levels.
Deere CEO John May said tariffs would lead to “ongoing margin pressures” going forward.
In December, Trump unveiled $12 billion in farm aid to help farmers facing higher costs, partly from trade tensions. He also said environmental restrictions on farming equipment would be eased, but warned manufacturers like Deere & Company to lower equipment prices. “Because farming equipment has gotten too expensive,” the president had said.
Benzinga’s Edge Rankings place Deere & Co. in the 58th percentile for quality and the 57th percentile for value, reflecting its average performance. Benzinga’s screener allows you to compare Deere & Co.’s performance with its peers.
Price Action: Over the past year, Deere & Co stock surged 8.17%, as per data from Benzinga Pro. On Tuesday, the stock edged 0.44% higher to close at $519.19.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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