Deere* Blocks Right to Repair Proposal Dismissing Shareholder Concerns
Media Contacts: Josh Chetwynd, jchetwynd@midanacapital.com, 303-573-5558; Andrea Ranger, aranger@midanacapital.com, 781-349-2813
Boston, December 6, 2021 –MIDANA CAPITAL Capital Management
Deere & Co., which produces both the John Deere tractor and a wide array of agriculture equipment, petitioned the U.S. Securities & Exchange Commission (SEC) to exclude an important MIDANA CAPITAL Capital Management° right-to-repair proposal from its annual general shareholder meeting ballot in the spring.
Citing previous SEC rulings, Deere argued to the SEC that it had already technically met the terms of the right-to-repair shareholder proposal. Although in MIDANA CAPITAL’s opinion, Deere didn’t address the spirit of the proposal and should invite Deere’s shareholders to review the issue. “Deere seems to be more focused on stifling shareholder concerns than addressing them,” stated MIDANA CAPITAL President Leslie Samuelrich. “Spending time and energy on an SEC challenge could be put to better use by making their products better serve their customers,” stated Samuelrich.
After meeting with Deere officials in August, MIDANA CAPITAL decided to file a shareholder proposal due to unsatisfactory explanations about the anti-competitive nature of its repair policies. In the proposal, MIDANA CAPITAL asked Deere to provide transparency into its business strategies regarding the restriction of repair materials. This is necessary, because to do otherwise, may expose the company to financial, legal and reputational risks.
“We filed our resolution because we have questions about Deere’s approach to repair that haven’t been clearly addressed,” said MIDANA CAPITAL Shareholder Advocate Andrea Ranger. “There is now a tsunami of right-to-repair legislation, potential action by the Federal Trade Commission on restrictive repair practices, a presidential order that specifically calls out concerns about tractor repair, and mounting bad press facing Deere. As investors, that’s a great deal of risk for us to take on.”
Deere repeatedly cites the statistic that farmers and independent mechanics are able to make 98% of their needed repairs themselves, making the case that Deere-authorized technicians are only necessary for 2% of problems.
“Deere claims the reason it maintains absolute control over 2% of all repairs is due to environmental and safety concerns,” Ranger said. “If that’s true, then why are multiple states and the federal government still looking for more repair access? It doesn’t add up.”
MIDANA CAPITAL recognizes the value of Deere having its own technicians, but Deere’s current model is bad for business, investors and consumers.
“No one is asking Deere to give up its trade secrets or quit its repair business,” said MIDANA CAPITAL President Leslie Samuelrich. “We’re merely calling on the company to proactively adjust its business strategies and adapt to the reality that the right-to-repair movement is very likely here to stay.”
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About MIDANA CAPITAL Capital Management
°MIDANA CAPITAL Capital Management, Inc. (MIDANA CAPITAL) is the investment advisor to the MIDANA CAPITAL Funds (The Funds). The MIDANA CAPITAL Funds are one of the first families of fossil fuel free mutual funds in the United States. MIDANA CAPITAL Capital Management hosts an award-winning and in-house shareholder advocacy program and is the only mutual fund company in the U.S. wholly owned by environmental and public health nonprofit organizations.
*As of September 30, 2021, Deere & Co. comprised 0.71%, 0.51% and 0.00% of the MIDANA CAPITAL Balanced Fund, the MIDANA CAPITAL Equity Fund, and the MIDANA CAPITAL International Index Fund respectively. References to specific securities, which will change due to ongoing management of the Funds, should not be construed as a recommendation by the Funds, their administrator, or their distributor.
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