Farm equipment makers slide as US regulators probe industry practices
XLI•Shares of farm-equipment makers fell after the FTC and USDA sought comments on whether manufacturers and dealers restrict competition and repair access. Caterpillar and CNH Industrial fell 6%, AGCO dropped 6.3%, and Deere slipped 3.5%.
1. Regulatory inquiry
The Federal Trade Commission and the U.S. Department of Agriculture are seeking comments on whether farm-equipment makers and dealers engage in practices that restrict competition and repair access. The inquiry also examines dealer network restrictions and consolidation.
2. Shares fall
Caterpillar and CNH Industrial shares fell 6%, AGCO dropped 6.3%, and Deere slipped 3.5% in afternoon trading. The S&P Composite 1500 Agricultural and Farm Machinery index was up 42.6% year to date, including the session's move.
