What if there came a time when it was no longer economically feasible to grow corn in Iowa? I know this is crazy talk and the possibility of such a scenario is about as far fetched as getting an atheist to join you at an evangelical revival meeting.
In the fourth of Farm Equipment’s every-other-year Dealership Minds series, six editors travelled to central California to experience first-hand how a successful dealership — Kern Machinery — operates in a market where agriculture can only be described as “diverse,” “intensive” and “rapidly changing.” It wasn’t that long ago when cotton, potatoes and hay dominated the landscape. Today, vegetables, fruit, grapes and nuts are taking over.
Clayton Camp didn’t plan on leading a multi-store dealership group. As a crop science major at Cal-Poly, he expected to spend his career on the family farm.
When the Camp family started farming 80 years ago, they primarily grew cotton, potatoes, hay and grain. But California farmers don’t often enjoy the cropping stability seen in the Midwest, and change is constant to maintain profitability.
Don Camp, Jr. is the president of Western Power Products, one of the three businesses owned and operated by the Camp brothers. In addition to Western Power Products, these include farming operations, which is overseen by Edwin Camp, and Kern Machinery, the John Deere dealership group, run by Clayton Camp.
“I miss cotton,” says Larry Sitzman. “We really enjoyed serving the cotton industry for a lot of years.” But today, cotton, which was once called “white gold,” has become insignificant in California’s Central Valley, one of the most diverse agricultural regions in the U.S., if not the world. Kern Machinery, where Sitzman is the general sales manager, hasn’t sold a cotton picker in more than 10 years.
Kern Machinery has not been satisfied to merely distribute farm machinery to its customer base. With the wide diversity of crops — from almonds and pistachios to table grapes and pomegranates — grown at the south end of California’s Central Valley, many of its customers’ challenges are unique to the region and not necessarily economically feasible for its major supplier to address.
“In terms of enterprise operations, I keep us all on the same track with planning, projects and key objectives coming up,” says Charlie Moe, aftermarket manager for Kern Machinery, in describing his role at the dealership.
Marty Buck, the CFO for Kern Machinery and the other Camp family entities (based in Bakersfield, Calif.), explained to Farm Equipment some of the differences in financial management responsibilities as dealerships grow in scale. He joined Kern 7 years ago, after previously leading financial departments at Unisys and Bolthouse Farms.
As part of one of the liveliest discussions Farm Equipment editors have had on the accounting topics with equipment dealerships, Kern Machinery CFO Marty Buck shared some takeaway value for some who wonder what their bean-counting teammates are up to, or what some of their words mean.
Santiago Alcantar wasn’t an expert on agriculture equipment when he joined Kern Machinery in 2013, but he was an expert when it came to customer service and retailing. Before joining the dealership as the parts manager for the Bakersfield and Lancaster stores, Alcantar worked as a manager for AT&T and Sears.
The uniqueness and diversity of agriculture in California’s Central Valley present some interesting challenges when it comes to selling farm machinery. But it’s been the switch to permanent crops and away from traditional row crops in the region that has altered how dealerships approach the sales process.
With a pair of GPS receiver globes resting on a shelf, an unopened touchscreen display tucked in the corner and a handy assortment of connectors and harnesses within arm’s reach, Joel Turrubiates’ office resembles that of most precision farming specialists.
Mark Campanella, the service manager for Kern Machinery’s Bakersfield, Calif., store, was originally brought into the dealership in 2009 to help the company “revamp” its field service program. Before joining Kern Machinery, Campanella had owned and operated his own field service business for construction equipment in southern California for 15 years.
Joe Alvarado leads by example and doesn’t take any of the opportunities he’s been afforded for granted, something he attributes to his time in the Marine Corps. When Alvarado returned to civilian life, he started working for a farm equipment and auto parts company in Tipton, Calif. It was a small, family-owned operation, but it was there that he fell in love with agriculture — more specifically the people of agriculture.
Customer chatter on the showroom floor or a wrench wrapping around a bolt in the service bay are often sounds that help define the success of a dealership. Less audible, but just as critical is the soft and constant purr of a company’s central computer servers, from which flow nearly every business operation.
Richard Knott is a parts department lifer. The parts manager started his career off working for another John Deere dealership north of Kern Machinery’s stores. After a 3.5-year stint in the parts department at that dealership, Knott came to Kern Machinery and 31 years later is still keeping the parts department on goal at the Buttonwillow location.
In over 30 years of working in the parts department at Kern Machinery, Chris Schott has seen a lot of changes. When he first started, a 24-hour turnaround on getting a part was amazing. “That’s not good enough any more. There are thousands and thousands of dollars on the line, so 24 hours is too long,” he says. “That creates the need for more inventory because customers want solutions and they want to be rolling now. If they have a piece of equipment down, they may have 3 pieces that operate behind it that can’t operate because the other one’s down. Well that adds up to big money fast. Downtime is a big thing for our customers and they’re under a lot more pressure.”
The extra large doors in its service department are a good indication that Kern Machinery’s Delano, Calif., location wasn’t necessarily built for the equipment that it specializes in today. “Our shop was actually built solely for cotton pickers. We’ve gotten away from the larger tractors and cotton pickers,” says Matt Godinho, sales manager of the store. As a matter of fact, when I came here 17 years ago we had 4 slightly used cotton pickers for sale. The last one we had was probably 12 years ago. I repossessed that one.”
While Don Zajac, service manager for Kern Machinery’s Buttonwillow, Calif., store, and James Boel, service manager at Kern Machinery’s Delano, Calif., store, have different levels of experience with the dealership and slightly different responsibilities, they both run their service departments with the same principle. No 2 days are the same for the pair and even under the best-laid plans, circumstances and schedules change.
For Clay Camp, son of Clayton Camp, president and co-owner of Kern Machinery, working in the family business at the farm equipment dealership was always the goal. After numerous summers spent helping out at the dealership while in high school, Clay knew he liked the atmosphere and always pictured himself returning to the dealership.
In the fourth of Farm Equipment’s every-other-year Dealership Minds series, six editors travelled to central California to experience first-hand how a successful dealership — Kern Machinery — operates in a market where agriculture can only be described as “diverse,” “intensive” and “rapidly changing.” It wasn’t that long ago when cotton, potatoes and hay dominated the landscape. Today, vegetables, fruit, grapes and nuts are taking over.
To be eligible for the award, each development — which could be a component, machine, structure, system, end product or procedure — must embody the application of new technology or the innovative application of an older technology. The technology must be new to the whole industry, not just to an individual company. In addition, for the 2016 awards the development must have been first made available for purchase or ordering during the 2015 calendar year.
Lower commodity prices (i.e., less money to spend for new equipment) and an industry-wide move to faster field speeds with ground-engaging tools may reignite farm interest in the mining industry’s long-standing practice of hard-facing tool surfaces to renew their shape and protect them from additional wear.
What if there came a time when it was no longer economically feasible to grow corn in Iowa? I know this is crazy talk and the possibility of such a scenario is about as far fetched as getting an atheist to join you at an evangelical revival meeting.
In the fourth of Farm Equipment’s every-other-year Dealership Minds series, six editors travelled to central California to experience first-hand how a successful dealership — Kern Machinery — operates in a market where agriculture can only be described as “diverse,” “intensive” and “rapidly changing.” It wasn’t that long ago when cotton, potatoes and hay dominated the landscape. Today, vegetables, fruit, grapes and nuts are taking over.
To be eligible for the award, each development — which could be a component, machine, structure, system, end product or procedure — must embody the application of new technology or the innovative application of an older technology. The technology must be new to the whole industry, not just to an individual company. In addition, for the 2016 awards the development must have been first made available for purchase or ordering during the 2015 calendar year.
In this episode of On the Record, brought to you by Associated Equipment Distributors, we take an initial look at the Dealer Business Outlook & Trends Report and what dealers are forecasting for 2025.
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