In 1908, Joseph Dain of the Dain Manufacturing Company (Iowa) purchased two hundred and fifty acres of land east of the Welland Canal between Humberstone and Crowland Township line. The town awarded a ten-year assessment of $10,000 and, in December of that year, Dain Manufacturing Company Limited in Welland, Ontario was chartered. The company based its growth on manufacturing new hay handling equipment developed and patented by Joseph Dain in 1882. Dain Manufacturing also produced grain binders, corn binders, and disk tillers, seeding attachments for disk tillers, disk harrows, field cultivators and Dain mowers.
Joseph Dain chose the location for his Canadian plant for its strategic advantages. The Welland area is located within five hundred miles of 60% of the population of the United States and 80% of Canada’s population. An important railroad network serving the United States and Canada services it. These rail lines included the New York Central, Michigan Central, Toronto, Hamilton and Buffalo, Wabash, Canadian National and Canadian Pacific. Highway transportation provided a network of facilities for convenient travel to all parts of the continent. The proximity to the Welland Canal provided for the economical shipment of products to customers.
In 1909, Dain City was named for the company because of the subdivision of the land adjacent to the plant for its employees to build houses. On April 7th of the following year the Dain Manufacturing Company Limited opened. In May, the manufacturing of the Success Spreader (under patent held by Kemp and Burpee Manufacturing Company, Syracuse, New York) began. By August 1910, the company entered the export market, shipping hay balers to South America.
In 1911, Deere and Company bought out Dain Manufacturing Company Limited. At the time, executives at John Deere still considered plow manufacturing to be the company's core business. Horses, oxen and mules were still considered the main source of power on American farms. But a dramatic shift was occurring elsewhere – the automobile industry was expanding and farmers were buying cars and learning about the advantages of the internal combustion engine.Joseph Dain was the driving force behind the All Wheel Drive Tractor. After the death of Joseph Dain, questions about the survival of the John Deere tractor business surfaced. The company's Board of Directors moved ahead by authorizing the manufacture of at least one hundred All-Wheel-Drive Tractors as soon as possible. Despite the quality and usefulness demonstrated in the AWD tractor, its list price of $1,500 was still considered too high. In 1917, as WWI continued in Europe, John Deere began producing wartime equipment instead of tractors.