The ban will include sales of farm and construction equipment.
Last week, the California Air Resources Board approved a set of rules for switching to all electric cars and trucks. And the governor's executive order will require all new, off-road equipment sales to be zero emissions where feasible by 2035.
To prepare for the change, Deere says it's "exploring technical advancements around internal combustion engines, renewable fuels, hybrid electric vehicles, and battery electric vehicles." The goal is to "deliver these technologies to customers where they make sense."
For example, last winter Deere bought Kreisel Electric, an Austrian company that specializes in battery technology.
Deere said the acquistion of Kreisel will allow Deere to design electric vehicles and powertrains, mainly for "high-performance and off-highway applications." And those products may include small tractors and construction equipment.