JayDee AgTech and Janson Equipment earned the industry’s top honors as Farm Equipment’s 2011 Dealerships of the Year.

Farm Equipment Staff Report

Dealership of the Year Judging Panel

The challenging job of choosing this year’s Farm Equipment Dealerships of the Year went to three highly experienced and involved individuals that comprised the independent judging panel. This year’s group included Dr. W. David Downey, Center for Agricultural Business, Purdue Univ., David Kahler, former CEO of the Ohio-Michigan Dealers Assn., and Charles R. Glass, Glass Management Group, and past chairman of the Farm Equipment Manufacturers Assn.’s Dealer Relations Committee.

Dr. W. David Downey
Executive Director, Center for Agricultural Business (CAB), Purdue University, West Lafayette, Ind.

Downey is responsible for the development of education programs at the CAB, which is largely regarded as the U.S.’ leading center for agribusiness education. A distinguished agricultural marketing professor and a proficient author, Downey also consults extensively throughout North America on a variety of agribusiness issues.

David L. Kahler
Retired CEO of Ohio-Michigan Equipment Dealers Assn., Dublin, Ohio

Kahler spent his entire 38-year career assisting equipment dealer-principals with their business affairs, the last 20 as CEO of the association serving Ohio and Michigan. An active industry participant who earned the respect of both dealers and manufacturers, Kahler retired from full-time employment last January.

Charles R. Glass
President, Glass Management Group, chairman emeritus, Farm Equipment Manufacturers Assn.’s (FEMA) Dealer Relations Committee, Arlington, Texas

Glass has been actively involved in the sales and marketing of farm equipment to dealers throughout his 40-year career. A former Director of FEMA, he is also a frequent presenter and author, including several white papers on the future of farm equipment distribution.

The 2011 Farm Equipment Dealerships of the Year have been selected and JayDee AgTech of Swift Current, Saskatchewan, has been chosen as this year’s top dealership in the over $50 million in annual revenue category. Top honors in the under $50 million in annual revenue category goes to Janson Equipment of Reese, Mich.

In total, 96 U.S. and Canadian dealerships were nominated this year by their farm customers, equipment suppliers , Dealership of the Year “Alumni” and their own employees..

Joining the top dealers this year are four additional farm equipment retailers that have been selected as the “Best-in-Class Dealerships” for 2011. Honors in the over $50 million in annual revenue category go to Johnson Tractor Inc. of Janesville, Wis., and BTI (Bucklin Tractor & Implement Co.) of Greensburg, Kan.

Chabot of Elie, Manitoba, and Heritage Agriculture of Arkansas, Carlisle, Ark., received the same honors in the under $50 million in annual revenue category.

Together, these six dealers amassed $495 million in total revenue, which amounted to nearly $880,000 per employee. They also combined for an average parts and service absorption rate of 84.2%.

Individual & Industry

What sets the top farm equipment dealerships apart from other outstanding dealerships are performance factors that are often difficult to quantify, like employee training and morale, succession planning and customer care.

But it’s the numbers provide the quantifiable aspect of the Dealership of the Year program.

In JayDee AgTech’s case, revenue per employee was nearly $1.2 million in 2010. Janson Equipment posted slightly over $730,000 of revenue per employee.

Two other numbers also stand out for Farm Equipment’s 2011 Dealerships of the Year. These included return on assets/parts and service (aftermarket) absorption.

As shown in the accompanying bar charts, the two top dealerships for 2011 easily surpassed industry averages and/or benchmarks.*

The SouthWestern Assn. (SWA) defines return on assets as “Net income before taxes/average assets.” The North American benchmark for ROA in 2009 was 6%.

JayDee AgTech reported a 24.3% ROA and Janson Equipment posted a 27% ROA for the year.

Aftermarket Absorption is defined as “Parts & Service gross margins/total expenses.” The North American benchmark for absorption for farm equipment dealers is 80%-plus and the North American average in 2009 was 64.6%.

JayDee AgTech’s absorption rate came in at 118.2% for 2010 and Janson Equipment demonstrated a 93.9% absorption rate for the year.

An Annual Tradition

In 2005, Farm Equipment editors established the Dealership of the Year program “to elevate farm equipment dealerships that are leading the industry in best practices, operations management and customer care.”

This year’s award recipients will join 33 past winners in the “Dealership of the Year Alumni Group,” which are shown on this page and the next.

*The source of the industry averages is the “2009 Cost of Doing Business Study,” which presents composite income statements and balance sheets in addition to averages for key financial performance ratios.

Data for the study is compiled and analyzed by the SWA Financial Consulting, P.C. annually. Copies of the study are available from the SouthWestern Assn. Go to www.swafinancialconsult.com to learn more.

“Dealership of the Year Alumni Group” 

2011 Class

Dealerships of the Year
JayDee AgTech, Swift Current, Saskatchewan
Janson Equipment, Reese, Mich.

Best-in-Class Dealerships
Johnson Tractor Inc., Janesville, Wis.
BTI (Bucklin Tractor & Implement Co.), Greensburg, Kan.
Chabot, Elie, Manitoba
Heritage Agriculture of Arkansas, Carlisle, Ark.

2010 Class

Dealerships of the Year
RDO Equipment, Northern Agriculture, Fargo, N.D.
Codington-Clark Equipment, Watertown, S.D.

Best-in-Class Dealerships
BTI (Bucklin Tractor & Implement Co.), Greensburg, Kan.
Elder Implement Co., Muscatine, Iowa
Janson Equipment Co., Reese, Mich.
Selmac Sales Ltd., Stoney Plain, Alberta

2009 Class

Dealerships of the Year
Young’s Equipment Inc., Regina, Saskatchewan
Bonneville and Madison County Implement, Idaho Falls, Idaho

Best-in-Class Dealerships
Kay Jan Inc., Fort Morgan, Colo.
RDO Equipment Co., Fargo, N.D.
Codington-Clark Equipment, Watertown, S.D.
Miller Sellner, Windom, Minn.

2008 Class

Dealerships of the Year
Miller Farm Equipment, Moosomin, Saskatchewan
Vincennes Tractor, Vincennes, Ind.

Best-in-Class Dealerships
Hendershot Equipment, Stephenville, Texas
Kay Jan Inc., Fort Morgan, Colo.
Kunau Implement, Preston, Iowa
Young’s Equipment Inc., Regina, Saskatchewan

2007 Class

Dealerships of the Year
Birkey’s Farm Store Inc., Rantoul, Ill.
Scott Supply Co., Mitchell, S.D.
Record Harvest, Nevada, Mo.

Best-in-Class Dealerships
Coastal Tractor, Salinas, Calif.
Fairbanks International, Hastings, Neb.
Hendershot Equipment, Stephenville, Texas
Kunau Implement, DeWitt, Iowa

2006 Class

Dealerships of the Year
Champlain Valley Equipment, Middlebury, Vt.
Titan Machinery, Fargo, N.D.

Best-in-Class Dealerships
Dave’s Tractor, Red Bluff, Calif.
Greenfield Equipment Co., Madison, Ga.
Hlavinka Equipment Co., East Bernard, Texas
S&H Farm Supply Inc., Rogersville, Mo.

2005 Class

Dealerships of the Year
Fred Haar Co. Inc., Freeman, S.D.
Jamestown Implement Co., Jamestown, N.D.

Best-in-Class Dealerships
Atkinson Implements, Hartney, Manitoba
RDO Equipment, Yuma, Ariz.
S&H Farm Supply Inc., Lockwood, Mo.
Swartzrock Implement Co. Inc., Charles City, Iowa

Make plans to participate in Farm Equipment’s 2012 Dealership of the Year program. To nominate a dealer whom you believe is worthy, or for more details, contact Dave Kanicki, executive editor, at dkanicki@lesspub.com or call 800-645-8455, ext. 414.