In this episode of On the Record, brought to you by Benzi America, we follow up on Jake Lieb’s viral TikTok video about AHW LLC canceling his order. In the Technology Corner, Noah Newman visits with Sloan Implements salesperson Jason Seger on demoing the S7 combine with automation. Also in this episode, an update on the auction market, the latest WASDE report from USDA and the most likely products to see year-end buying.

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This episode of On the Record is brought to you by BENZI.

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Illinois Farmer Takes to Internet to Square Off with Deere Dealer AHW

One of the biggest viral stories in the ag machinery dealer world, though not a good one as far as most industry stakeholders are concerned, transpired at the end of August. During a conference-room meeting at John Deere dealer group AHW LLC, Illinois farmer Jake Lieb went public about AHW’s decision to cancel his multi-unit order with the John Deere dealer group. Lieb claims the 18-store dealer group ripped up his multi-unit trade deal inked 2 months ago, citing downward trends in the used equipment market as the cause.

 Within days, Liebe’s 71-second video was viewed 1.2 million times. Not since the right to repair uproar has there been such a division in ag machinery, with farmers, dealers and analysts taking sides.

AHW is an 18-store John Deere dealer group that employs 550. According to the 2024 update to Farm Equipment’s Dealer 100™ list, AHW is the 44th-largest dealer group in North America.

Farm Equipment editor Mike Lessiter has been following the story and spoke to the 5th generation farmer in early September about the video from the AHW boardroom and the subsequent commentary and media coverage that has gone industrywide. Lessiter reached out to AHW management on 3 occasions but no calls have been returned to date.

“We've just been informed that a deal we made 2 months ago to trade equipment is no longer being honored by AHW because some things have changed in the used equipment market.” says Lieb, who runs a progressive corn and soybean operation with his brother Josh. The farm is in its 5th generation of family ownership.

Lieb never had any issue with the local store. In the video, he says, “Now, AHW has close to 20 stores, and I guess they think they're too big to care about honoring deals, which we've got on paper. They're saying they're not going to honor it … that the P.O. is worthless anyway. So, if you, the farmer, have a P.O. and with grain prices being down you feel bad about the agreement you've made, I'd encourage you to just back out of it,” he says, also pointing his fellow farmers to 2 other Deere dealers he mentions by name.

You can read Farm Equipment’s coverage from September 5 on the matter, as well as a just-updated part here.

Dealers on the Move

This week’s Dealer on the Move is Johnson Tractor. The Case IH dealership group has acquired 2 of St. Joseph Equipment’s locations in LaCrosse and Richland Center, Wis. The acquisition will be finalized on December 1, 2024. With this acquisition, Johnson Tractor will have 11 locations in Wisconsin and Illinois.

Deere Dealer Demos Limited Production S7 Combine with Automation 

It’s been a busy summer for the dealership formerly known as Alliance Tractor after it was acquired by 22-store Sloan Implement in July. Last week, we paid a visit to the Vincennes, Ind., store for an upcoming feature in Farm Equipment, and came across a limited production S7 combine equipped with precision technology that they’ve been demoing for wheat growers this summer. Salesperson Ryan Seger gives us the rundown on the new machine.

“The biggest thing that customers see on this is some of the new automation. The combine is going to be proactive, where it’s going to be using satellite imagery, and it also has cameras so it’s going to be able to speed up and slow down the combine based on what the crop conditions are. Lots of this automation is going to help the customer be more productive. So even more of our experienced operators will be excited to see the productivity gains with this machine. We’re excited to have this demo machine, and looking forward to getting it out to the field with some customers this fall.”

And we’ll have more on the new machine and Sloan Implement’s approach to precision technology in the upcoming issue of Farm Equipment magazine.

Van Wall Holds Auction at 2024 Farm Progress Show

During the Farm Progress Show in Boone, Iowa, Van Wall Equipment auctioned off 137 items over 2 days in conjunction with Big Iron and Sullivan Auctioneers.

I spoke with Big Iron co-founder Mark Stock during the show. The auction — like all run by Big Iron and Sullivan Auctioneers — was absolute, meaning there’s no reserves and everything has to sell

The auction attracted buyers at the show as well as worldwide.

“There are people here bidding on their phones, but there's guys and gals in Texas and Oregon and Washington and Pennsylvania. Quite a few people bidding in Georgia right now, plus all the Midwest states. A lot of Illinois and Iowa bidders, they buy from all over. And BigIron and Sullivan's have been pretty well respected brand names and from Canada to Mexico and even beyond. We've registered several people from Argentina, Uruguay, Brazil here, and whether they get something bought, we don't know, but they've been bidding.”

According to Stifel’s September Used Equipment Update, auction pricing trends for used equipment continued to face pressure in July given tough comps due to an overall tight equipment market last year related to supply chain challenges. However, Brian Brophy, associate vice president of Stifel, notes asking prices for used equipment are more mixed as some categories continue to see pricing growth and others have started to follow auction pricing declines.

Stock says low commodity prices have pushed used equipment pricing down. 

“The price of good quality equipment is driven by two things, commodity prices and supply. Supply is not an issue right now because a lot of people have rebuilt their inventories up from the Covid times. But what has pushed some of the prices down on the equipment is the low commodity prices. But it always takes a little while to do the math and add that we've got extra bushels coming too in a lot of areas. Once they start realizing that they're still going to have a good crop ... they might hold it and store it in a bin until the prices rebound. They go see their tax guy in November and then it come December ... that's one thing pretty much everybody in agriculture doesn't like to do is pay Uncle Sam a lot of tax.”

WASDE: September Report ‘Modestly Positive’ for U.S. Farmers

USDA released its September World Agriculture Supply & Demand Estimates on Sept. 12.

This month’s 2024/25 U.S. corn outlook is for smaller supplies and a modest decline in ending stocks. Projected beginning stocks for 2024/25 are 55 million bushels lower based on increases in exports and corn used for ethanol for 2023/24. Corn production for 2024/25 is forecast at 15.2 billion bushels, up 39 million from last month. With supply falling and use unchanged, ending stocks are reduced 16 million bushels to 2.1 billion. The season-average corn price received by producers is lowered 10 cents to $4.10 per bushel.  

U.S. soybean supply and use changes for 2024/25 include lower beginning stocks, production, and ending stocks. Lower beginning stocks reflect a slight increase to crush for 2023/24. Soybean production for 2024/25 is projected down 3 million bushels to 4.6 billion. With 2024/25 soybean crush and exports unchanged, ending stocks are projected at 550 million bushels, down 10 million from last month. The U.S. season-average soybean price is forecast unchanged at $10.80 per bushel. 

Analysts with JP Morgan said they view the September report as “modestly positive for farmers to the extent lower new crop ending stocks for soybeans could support crop prices. 

Hay Equipment Most Likely Tax Purchases at Year End

Shortline manufacturers at the 2024 Farm Progress Show were realistic about the current market conditions, but did show glimmers of optimism. 

Jamie Meier, Landoll Ag Division sales manager, said while the summer was tough as far as retail orders, he’s feeling better as we’re getting into fall. 

He added that cattle and dairy customers are doing better than grain producers and are making a little bit of money. With such a large crop in the fields and high yields expected, he says high bushels help offset some of the negative pricing for commodities. As a result, Meier thinks we are likely to see some year-end buying, and notes it will be easier for farmers to buy a $100,000 tillage tool than say a $1 million combine or tractor.

Following the Farm Progress Show, we asked dealers what products they anticipate farmers are most likely to buy come December. 

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Hay and forage equipment stood out as the top product farmers are likely to buy, followed by rotary cutters and headers. 

DataPoint: Canadian Equipment Costs Per Acre Near $900

This week’s DataPoint is brought to you by the 2025 Ag Equipment Intelligence Executive Briefing. 

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Rising farm equipment prices, increasing interest rates and higer farm profitability have farmers placing more emphasis on their per acre equipment costs. According to Farm Credit Canada economists, total farm equipment investment per acre is nearing $900 per acre in 2024, based on new equipment prices and annual equipment capacities. 

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