Farm equipment stocks after the FTC and USDA joint inquiry: AGCO, Deere and CNH compared

On October 7, 2026, the Federal Trade Commission (FTC) and U.S. Department of Agriculture (USDA) initiated a joint investigation into agricultural equipment manufacturers. The focus of the probe was on restrictive dealer contracts, hidden fees, and retaliation against farmers who choose not to deal with authorized dealers. The inquiry was described as a fact-gathering exercise, not a legal proceeding, with the outcomes potentially influencing future legal actions and regulations.

Deere & Company (DE), CNH Industrial (CNH), and AGCO Corporation (AGCO) experienced declines of 5.0%, 5.7%, and 5.9% respectively, as of the trading day on October 7, 2026. The stock prices had been on a downward trajectory since peaking around 2023, with Deere falling from $61.22 billion to $45.63 billion, AGCO from $14.41 billion to $10.08 billion, and CNH from $24.69 billion to $18.09 billion.

Despite the declines, the trailing price-to-earnings (P/E) ratios remain inflated, particularly for Deere and CNH, given that earnings have contracted more rapidly than share prices.

The outlook for the agricultural equipment sector hinges on whether the regulatory proceedings are still in their early stages and whether a cyclical market recovery could help restore earnings. On the bearish side, the potential remedies could erode dealer and service margins, impacting the financial performance of these companies.

Deere's high-margin parts and repair business appears to be the most vulnerable segment during this regulatory scrutiny. However, the analysis did not provide a definitive buy or sell recommendation, noting that AGCO offered the most valuation protection, while Deere had the least.