When you hear the name John Deere, you probably picture green tractors working in farm fields. But have you ever wondered who actually owns this iconic American machinery company?
Many people are surprised to learn that while John Deere is a publicly traded company operating under Deere & Company, the largest shareholder of John Deere is Bill Gates through his investment firm Cascade Investment LLC. They own about 7.26% of the company’s shares.
The company has a rich history dating back to when blacksmith John Deere created the first commercially successful steel plow in 1837. Today, the company is led by Chairman and CEO John May, who oversees more than 75,000 employees worldwide.
Deere & Company manufactures not just agricultural machinery but also heavy equipment and forestry machinery that’s used around the globe.
Despite having major shareholders like BlackRock Advisors LLC (which owns about 4.78% of shares), John Deere remains a public company where ownership is spread among many investors who buy stock through the market. This ownership structure has allowed the company to maintain its independence while growing into one of the world’s leading equipment manufacturers.
History of John Deere
John Deere’s story spans nearly two centuries, evolving from a one-man blacksmith shop to a global agricultural equipment giant. The company’s growth reflects America’s agricultural development and technological innovation in farming.
Founding and Early Years
John Deere, a Vermont blacksmith, moved to Grand Detour, Illinois in 1836 when business slowed in his home state. In 1837, he developed the first commercially successful, self-scouring steel plow, solving a major problem for Midwest farmers struggling with sticky prairie soil.
Unlike cast-iron plows that needed constant cleaning, Deere’s polished steel plow cut through the soil easily. Word spread quickly about his invention, and by 1841, he was manufacturing 100 plows annually.
In 1848, Deere moved operations to Moline, Illinois, to take advantage of water power and transportation from the Mississippi River. The company was officially named “Deere & Company” in 1868, with John Deere serving as its president until 1886.
Expansion and Diversification
By the early 1900s, the company expanded beyond plows to offer a full line of farm implements. A key milestone came in 1918 when Deere & Company purchased the Waterloo Gasoline Engine Company, bringing tractors into their product lineup.
The iconic green and yellow color scheme was adopted for John Deere tractors in the 1920s. During the Great Depression, despite financial hardships across America, the company managed to maintain operations without defaulting on loans.
After World War II, John Deere heavily invested in new manufacturing facilities and product development. The 1950s saw significant growth with the company establishing John Deere Credit Company in 1958 to finance equipment purchases.
Modern Developments
In the latter half of the 20th century, John Deere transformed into a global corporation. The company officially incorporated as Deere & Company in 1958, though it continues to do business as John Deere.
The 1960s through 1990s marked significant technological advances in their tractors and farm equipment. Computer technology began integrating into John Deere products, enhancing precision farming capabilities.
Today, John Deere is recognized worldwide for manufacturing:
- Agricultural equipment
- Construction machinery
- Forestry equipment
- Lawn care products
The company has embraced GPS technology, automation, and artificial intelligence to create “smart” tractors and equipment. John Deere continues to innovate in sustainable farming practices while maintaining its founder’s commitment to quality and customer service.
Ownership Structure
John Deere, officially known as Deere & Company, has a diverse ownership structure with a mix of institutional and individual shareholders. The company’s stock trades on the New York Stock Exchange under the ticker symbol “DE,” and ownership is divided among various entities.
Public Shareholding
Deere & Company is a publicly traded corporation, which means anyone can purchase shares through stock exchanges. This public ownership gives regular investors a chance to own a piece of the iconic agricultural machinery manufacturer.
The company issues shares to the public, allowing them to participate in the company’s growth and receive dividends. Public shareholders have voting rights at annual meetings, though their individual influence is typically small compared to larger institutional holders.
About 30% of Deere’s shares are held by non-institutional investors, including retail investors and employees. The company’s public status means it must follow SEC regulations and provide regular financial disclosures to all shareholders.
Institutional Investors
Institutional investors control approximately 70% of Deere & Company’s shares. These large organizations significantly influence company decisions through their substantial voting power.
The largest institutional shareholders include The Vanguard Group, BlackRock, and State Street Global Advisors. These financial giants manage trillions in assets and invest in stable companies like Deere.
BlackRock holds approximately 4.78% of shares, amounting to over 13 million shares valued at around $6.26 billion. The Vanguard Group maintains another significant position in the company.
These institutional holders typically take long-term positions in companies they believe will provide stable returns. Their involvement provides Deere with capital stability but can also influence major corporate decisions.
Individual Shareholders
Among individual shareholders, Cascade Investment LLC stands out, owning approximately 7.26% of Deere & Company. This investment vehicle belongs to Bill Gates and holds nearly 20 million shares valued at over $9.5 billion.
The board of directors also maintains ownership stakes, aligning their interests with the company’s performance. These directors make critical decisions about Deere’s strategic direction while representing shareholder interests.
Employees may own shares through stock purchase plans or compensation packages. This ownership helps align worker interests with company success and provides additional financial benefits beyond regular compensation.
Individual shareholders with significant stakes can sometimes influence company policy, especially if they coordinate voting or gain board representation. However, most individual investors hold relatively small positions compared to the institutional giants.
John Deere’s Product Range
John Deere offers a wide array of equipment serving multiple industries with innovative solutions for various needs. Their product lineup spans from small lawn mowers to massive farming combines and heavy construction machinery.
Agricultural Machinery
John Deere is perhaps best known for its agricultural machinery. Their iconic green tractors range from compact utility models for small farms to massive row-crop tractors with advanced precision technology.
The company’s combine harvesters are industry leaders, featuring cutting-edge automation that helps farmers maximize yields. These machines can harvest multiple crop types and offer features like GPS guidance and yield mapping.
John Deere also produces:
- Sprayers for crop protection
- Planters and seeding equipment
- Balers and hay tools
- Tillage equipment for soil preparation
Many modern John Deere farm machines include smart technology that connects to the John Deere Operations Center, allowing farmers to track performance and schedule maintenance.
Construction Equipment
The yellow and black construction lineup from John Deere includes powerful machines built for reliability in demanding conditions. Their excavators range from compact mini-excavators to large production models for mining operations.
Other popular construction offerings include:
- Wheel loaders for material handling
- Backhoe loaders combining digging and loading capabilities
- Skid steer loaders with numerous attachments
- Dozers for earthmoving projects
- Motor graders for road maintenance
Construction professionals appreciate the comfortable cabs and intuitive controls that reduce operator fatigue. Many models now feature hybrid technology to reduce fuel consumption without sacrificing power.
Forestry Equipment
John Deere serves the forestry sector with specialized machines designed for sustainable timber harvesting. Their purpose-built forestry equipment includes harvesters that can fell, delimb, and cut trees to specified lengths in one efficient operation.
The forestry lineup also features:
- Forwarders for transporting logs from cutting site to landing
- Skidders that drag cut trees to collection points
- Feller bunchers for cutting and gathering multiple trees
- Wheeled and tracked harvesters for various terrain conditions
These machines are built with reinforced frames, heavy-duty components, and protected hydraulic systems to withstand the harsh forest environment. Specialized software helps operators maximize productivity while minimizing environmental impact.
Lawn Care Equipment
For homeowners and landscaping professionals, John Deere offers quality lawn and garden equipment. Their riding lawn mowers include everything from basic models to commercial-grade zero-turn mowers with professional features.
The residential lineup includes:
- Walk-behind mowers for smaller lawns
- Residential and commercial zero-turn mowers
- Compact utility tractors with multiple attachments
- Garden tractors for larger properties
- Gator utility vehicles for hauling and transport
John Deere’s lawn equipment maintains the same quality standards as their larger agricultural machines. Many models feature easy-to-use controls, comfortable seating, and durable construction that lasts for years of reliable service.
Technological Innovation
John Deere has transformed from a traditional farm equipment manufacturer into a technology company focused on agricultural solutions. Their innovation strategy has revolutionized farming practices through smart machinery, autonomous equipment, and eco-friendly technologies.
Precision Agriculture
John Deere’s precision agriculture technologies help farmers maximize efficiency and crop yields. Their tractors and equipment feature GPS guidance systems that enable accurate field navigation with minimal overlap, reducing wasted resources.
Smart sensors collect valuable data about soil conditions, crop health, and weather patterns. This data helps farmers make informed decisions about when and where to plant, fertilize, and harvest.
John Deere’s mobile apps and farm management software allow farmers to monitor operations remotely. These digital tools provide real-time updates and analytics, helping farmers track everything from fuel usage to crop development.
The company’s purpose-driven innovations focus on addressing key agricultural challenges, including feeding a growing global population. Their precision technology makes farming more productive and profitable while using fewer resources.
Automation and Robotics
John Deere has made significant investments in automation and robotics to create smarter farming machines. In 2021, they acquired Bear Flag Robotics, a Silicon Valley startup specializing in autonomous tractor technology.
Another major acquisition came in 2017 when Deere purchased Blue River Technology for $305 million. Blue River’s “See & Spray” technology uses computer vision to identify and target individual plants for precise application of herbicides.
Autonomous tractors and harvesters are becoming a reality on modern farms. These self-driving machines can work around the clock with minimal human supervision, addressing labor shortages in agriculture.
Robotic attachments for Deere equipment can now perform delicate tasks like selective harvesting and precision weeding. The LettuceBot technology from Blue River can distinguish between crops and weeds, targeting only unwanted plants.
Sustainable Innovations
John Deere’s commitment to sustainability drives many of its technological advancements. Their equipment now features more fuel-efficient engines that reduce emissions while maintaining powerful performance.
Electric and hybrid tractors are being developed to decrease dependence on fossil fuels. These eco-friendly alternatives offer quieter operation and lower maintenance costs compared to traditional diesel models.
Smart irrigation systems from John Deere optimize water usage, delivering precisely what crops need when they need it. This technology is especially valuable in drought-prone regions where water conservation is critical.
In 2020, Deere launched their Smart Industrial Strategy with a focus on sustainable technology investments. This approach aims to make farming more environmentally friendly while maintaining productivity.
Precision application technologies reduce the amount of fertilizers and pesticides needed, minimizing chemical runoff and soil contamination. These innovations protect natural resources while supporting healthy crop growth.
Global Operations
John Deere operates worldwide with manufacturing plants, distribution networks, and service centers across different continents. The company has built a strong international presence while adapting to regional farming needs and equipment regulations.
North American Market
North America remains John Deere’s largest and most established market. The company maintains significant manufacturing facilities throughout the United States and Canada, producing a wide range of agricultural, construction, and forestry equipment.
The U.S. manufacturing commitment is particularly strong, with major plants in Illinois, Iowa, and Wisconsin. These facilities employ thousands of workers and contribute significantly to local economies.
John Deere’s dealer network in North America is extensive, with hundreds of independently owned dealerships providing sales, parts, and service support. This network ensures farmers and contractors have local access to equipment and maintenance.
The company has invested heavily in smart farming technologies specifically designed for North American agricultural practices. These innovations include GPS guidance systems, precision planting equipment, and data management tools.
European Expansion
John Deere entered the European market decades ago and has steadily built a strong presence across the continent. The company operates major manufacturing facilities in Germany, France, and Spain.
European operations focus on creating equipment tailored to the region’s unique farming practices and field sizes. Smaller, more maneuverable tractors and harvesters are popular products in this market.
The company’s European headquarters is located in Mannheim, Germany, where they coordinate regional sales, marketing, and product development. This central location allows them to respond quickly to market changes across Europe.
John Deere has adapted well to Europe’s strict environmental and emissions regulations. They’ve developed special models that meet or exceed these standards while maintaining performance.
The dealer network throughout Europe provides comprehensive support in multiple languages. This local presence helps build long-term relationships with European farmers and contractors.
Growth in the Middle East
The Middle East represents a growing market for John Deere, with significant sales increases in recent years. The company has established regional offices in Dubai to coordinate sales and support across Middle Eastern countries.
Water conservation is a key focus of John Deere’s Middle Eastern products. They offer specialized irrigation equipment and drought-resistant farming technologies suited to the region’s arid conditions.
Joint ventures with local businesses have helped John Deere navigate the unique business environment of Middle Eastern countries. These partnerships provide valuable market insights and distribution channels.
Training programs help farmers in the region maximize equipment efficiency. John Deere regularly conducts workshops on maintenance and advanced farming techniques.
The company has adapted their equipment to handle the extreme heat and dusty conditions common in Middle Eastern farming. Special cooling systems and air filters help maintain reliability in harsh environments.
Asian Market Presence
Asia represents one of John Deere’s fastest-growing markets, with China and India being particularly important. The company operates manufacturing facilities in both countries, producing equipment designed for local farming needs.
Small and medium-sized tractors are especially popular in Asian markets where farm sizes tend to be smaller than in North America. John Deere has developed models specifically for rice cultivation and other regional crops.
The company has formed strategic joint ventures with Asian manufacturers to expand their market reach. These partnerships combine John Deere’s technology with local manufacturing expertise.
Distribution networks in Asia continue to grow rapidly, with hundreds of new dealerships opening in recent years. This expansion helps bring modern farming equipment to previously underserved rural areas.
John Deere provides specialized training to Asian farmers transitioning from manual to mechanized farming. These programs help build customer loyalty while improving agricultural productivity across the region.
Financial Health
John Deere maintains strong financial health with significant assets, manageable debt levels, and consistent returns to shareholders through dividends and stock buybacks.
Revenue Streams
John Deere generates revenue primarily through its equipment operations, which include agricultural, construction, and forestry machinery sales. The company reported net income of $1.245 billion for the fourth quarter and $7.1 billion for the fiscal year, showing its robust earning capacity despite market fluctuations.
Their financial services segment also contributes significantly to the bottom line. In August 2024, John Deere expanded this revenue stream by entering into a joint venture with Brazilian bank Bradesco, strengthening their position in the important South American market.
The company exceeded earnings expectations in November 2024, with earnings per share of $4.55 surpassing estimates of $3.89, representing an impressive 16.97% earnings surprise.
Investments and Acquisitions
John Deere strategically invests in technology and innovation to maintain market leadership. Their investments focus on precision agriculture, autonomous equipment, and digital farming solutions that help farmers increase productivity.
The company’s balance sheet reveals a solid financial foundation for growth and acquisitions. They maintain total shareholder equity of $22.6 billion alongside total debt of $65.0 billion, resulting in a debt-to-equity ratio of 288%.
Despite this relatively high ratio, Fitch has affirmed John Deere’s long-term rating at ‘A+’ with a stable outlook, reflecting confidence in the company’s financial management and future prospects.
Taxes and Regulatory Fees
John Deere navigates a complex global tax environment with operations in numerous countries, each with different tax structures. The company works to maintain tax efficiency while meeting all regulatory requirements.
Regulatory fees vary by region and include environmental compliance costs, product certification fees, and import/export tariffs that impact overall profitability.
The company’s commitment to sustainability may help mitigate future regulatory costs. Their 2023 Business Impact Report highlights environmental initiatives that could position them favorably as regulations around carbon emissions and manufacturing practices tighten globally.
Stockholders benefit from John Deere’s tax planning and compliance strategies, which help maximize after-tax returns. The company has returned 71% of cash flow from equipment operations to shareholders over the past three fiscal years (2021-2023).
News and Upcoming Ventures
John Deere continues to grow through innovation, strategic partnerships, and forward-thinking investments. The company regularly announces new collaborations and product developments that shape the future of agriculture and construction.
Latest Announcements
John Deere recently revealed its 2025 Startup Collaborator program, selecting six promising companies to work with. This program helps the agricultural giant stay at the cutting edge of technology by partnering with innovative startups.
The company is also investing millions back into its operations. These funds will support several expansion projects aimed at improving manufacturing capabilities and research facilities.
In addition to expansion plans, John Deere has been making news with its sustainability initiatives. They’ve been focusing on developing electric equipment options and reducing the environmental impact of their manufacturing processes.
Customer support improvements have also been announced, with new digital tools to help equipment owners manage maintenance and maximize productivity.
Forthcoming Products
John Deere’s product pipeline shows a strong emphasis on autonomous technology. New self-driving tractors and equipment with enhanced precision agriculture features are being developed to help farmers work more efficiently.
Electric equipment represents another major focus area. Following their acquisition of majority ownership in Kreisel Electric, John Deere is accelerating development of battery-powered machinery with improved performance and durability.
Smart farming solutions powered by AI and data analytics continue to evolve in their upcoming product lineup. These tools help farmers make better decisions about planting, harvesting, and resource management.
New construction equipment with improved fuel efficiency and reduced emissions is also in development, reflecting the company’s commitment to sustainability across all product categories.
Strategic Partnerships
John Deere’s growth strategy includes forming important alliances with technology companies. Their 2024 Startup Collaborator program demonstrates this approach, bringing fresh ideas and technologies into their ecosystem.
The company has established joint ventures with several specialized manufacturers to expand their product offerings. These partnerships allow John Deere to enter new markets without developing every component in-house.
Research collaborations with universities and agricultural institutions help drive innovation. These relationships provide valuable testing grounds for new equipment and farming techniques.
Dealer partnerships remain crucial to John Deere’s success. The company continues to strengthen its global dealer network, ensuring customers receive excellent service and support for their equipment purchases.
Community and Sustainability
John Deere goes beyond making farm equipment by investing in people and the planet. The company focuses on sustainable practices, community support, and responsible corporate citizenship.
Corporate Social Responsibility
John Deere demonstrates its commitment to social responsibility through various initiatives and foundations. The John Deere Foundation has pledged $200 million over the next decade to create lasting, purposeful impact for communities and families they serve.
This investment shows how seriously the company takes its role in society. In 2021 alone, the foundation invested $2.7 million in food banks in areas where John Deere operates.
The company has been recognized for these efforts, earning a spot as one of the 50 most community-minded companies. Their approach integrates social responsibility into their business model rather than treating it as an afterthought.
Environmental Stewardship
John Deere’s environmental initiatives are part of their “Leap Ambitions,” a comprehensive roadmap to sustainability. The company uses technology to advance sustainable farming practices worldwide.
They’ve partnered with organizations like The Nature Conservancy to ensure land remains productive for future generations. This collaboration focuses on developing farming methods that protect soil health and reduce environmental impact.
John Deere has also invested in cloud technology to advance sustainable farming. Their smart equipment helps farmers optimize resource use, reducing waste and environmental impact.
The company’s growth strategy aligns with environmental goals, developing technologies that help farmers produce more while using fewer resources.
Supporting Local Communities
John Deere actively supports the communities where its employees live and work. One notable initiative is their partnership with The Farmlink Project. This project addresses food system challenges by connecting surplus produce with people in need.
The company supports education programs that help develop the next generation of agricultural professionals. They provide resources, equipment, and expertise to schools and training centers.
John Deere also responds to community needs during crises, offering both financial support and practical assistance. Their employees frequently volunteer in local communities, reinforcing the company’s commitment to making a positive impact.
