(Radio Iowa) – Ag equipment maker John Deere is announcing plans to eliminate some 800 jobs at plants in Iowa and Illinois over the coming weeks. It follows word last month the company would shift production of its skid steer loaders and compact track loaders from Dubuque to Mexico by the end of 2026. Iowa Secretary of Agriculture Mike Naig is reacting to the news. “Anytime that you’re hearing about roll backs, layoffs, moving things outside of the state of Iowa or the United States,” Naig says, “you’re concerned about those things, you want to understand them.”

In a statement, the company cited rising manufacturing costs as a key factor, while lower crop prices have also caused a slowdown in new ag equipment sales. Some forecasters predict a 25-percent drop in farm income this year over last. Naig says the agricultural economy in general is experiencing what he called “softness” due to a number of factors. “The announcements that you’ve heard made of late are indicators of very much some softness in the ag economy,” Naig says. “Given the effects of inflation, high input prices, the cost of capital interest rates remaining where they are, all those things are contributing in the ag space to delaying decisions if you can — let’s just go sideways for a little bit.”

Deere is eliminating more than 200 jobs at its Davenport plant and another 99 in Dubuque at the end of August, and more than 500 in East Moline, Illinois at the end of September. Deere announced earlier this year it’s cutting more than 800 jobs at facilities in Waterloo, Ottumwa and the Des Moines metro. Naig says the souring economic effects aren’t just limited to the ag equipment sector. “That’s also playing out now in some of these announcements that you’re hearing made about even meat processing or manufacturing,” he says. “So, you try to take all that in and look at it holistically, but I do think that it’s certainly sending some signals about a softening in the economy or at least a lack of confidence in the economy, and those are things what we need to be addressing as a country.”

Secretary Naig says it’s imperative for the state to do everything it can to help agriculture and manufacturing continue to thrive, as they are key economic drivers in the state. His comments came Monday as he was in Davis County to tour a local parts fabrication business.