Members of the United Auto Workers voted down an offer from Deere to extend its contract with the union by two years, setting up what will likely be a contentious negotiation for a new contract next year.

The farm equipment maker last month offered union members two years of 4% wage increases and $3,000 bonuses if they accepted the offer by the end of August. The proposal would have extended the current contract from 2027, when it is set to expire, to 2029.

The company said pensions, healthcare coverage, cost-of-living wage adjustments and other benefits in the 2021 contract would have remained unchanged under the extension.

UAW President Shawn Fain derided the unprecedented offer, calling it an effort to avoid the regular collective bargaining process. He said the offer failed to address the outsourcing of work from unionized Deere plants and didn't include a plan to call 1,600 laid-off employees back to work.

"The company failed to make an offer that addressed the issues weighing on the minds of our members, especially job security," Fain said Sunday. "We'll see Deere at the table in 2027."

Deere officials didn't immediately respond to a request for comment about the vote results.

UAW members struck Illinois-based Deere in 2021 for the first time in 35 years. The walkout lasted more than a month. Workers rejected two proposed contracts before approving a six-year deal that included an immediate 10% raise and an $8,500 bonus for each worker.

The union in July submitted a counteroffer to Deere's proposed extension. Deere turned down the counteroffer, describing it as costing the company roughly $500 million more than the company's extension proposal.

"That counteroffer is contrary to Deere's goal of providing continuity and certainty for our employees when equipment demand is down," Deere said in a statement.

Demand for high-horsepower farm equipment in North America-a market Deere dominates-has fallen precipitously since 2023. Lower market prices for farm commodities and higher costs for fuel and fertilizer have eroded farmers' incomes, causing them to refrain from buying new tractors, harvesters and other equipment.

Deere has continued to generate profits during the slump in the farm economy. The company aggressively lowered costs with workforce reductions and increased profits from its construction machinery line and other businesses. The stock is up 29% over the past year, beating the broader S&P 500 index.

Fain said Deere has put the interests of shareholders and executives' compensation above workers in recent years. "They should start by bringing back the 1,600 laid off workers and guarantee no layoffs in the next two years," he said.