We used to say, “All important decisions are made on the basis of insufficient data.” That’s probably not the case these days. In fact, with data coming at us from all angles and every direction, “paralysis by analysis” would seem to be more fitting. What is even more correct is “uncertainty reigns,” but then this is nothing new for agriculture.
The landscape of the agriculture industry has been changing over the last several years, and is showing no signs of easing up. Consolidation and mergers are redefining the industry. Three mega-mergers on the crop protection and seed industry side of the business have dominated headlines — Dow-DuPont, ChemChina-Syngenta and Bayer-Monsanto.
Farm consolidation over the last 3 decades has led to fewer, but larger production farms, while small lifestyle farms have risen in number and will drive demand of small farm equipment.
Dow and DuPont. Monsanto and Bayer. John Deere and Blue River Technology. AGCO and Precision Planting. In almost every segment of the agriculture industry — from chemical and seed, to farm equipment and technology — consolidation is taking place. And the cause of these major mergers is a direct reflection of what is taking place on the end user side: farm consolidation.
Over the last two decades, the agricultural equipment market has seen dramatic change — change that has had a huge impact on farm equipment manufacturers, dealers and customers. In this special report, Farm Equipment takes an in-depth look at the many factors that have been driving industry consolidation through the decades, and what to expect in the years ahead.
All aspects of the ag industry have been consolidating over the last several years, and it seems to have picked up recently. This is no different for farm equipment dealerships. Some of the consolidation is being led by the major equipment manufacturers, some of it is in response to farm consolidation (see “Farms Shrinking in Number, Growing in Size,” page 12), and still some is due to dealer owners exiting the industry.
The most popular response was subscriptions and association memberships, followed by dealer peer groups. The least popular responses were vendor-supplier training and webinars. First of its kind Marketing Expenditures Survey reveals surprises, confirms suspicions for industry practices.
Many ag equipment dealers have seized on digital marketing opportunities and found them to be very effective tools as part of their overall marketing efforts, according to the findings of a first of its kind marketing survey.
In January’s article, I challenged you to focus on investing in your Human Capital in 2018 given the importance of finding and developing the people that work for you — “Job One.” The goal is that by the end of the year you’ll look back fulfilled with your progress.
The high cost of installing three-phase electrical service to rural areas, whether for irrigation pumps or grain-handling motors, may not be as necessary as commonly thought thanks to the maturing of an electrical-engineering concept developed over the past 25 years.
This is an exciting time in the farm equipment business. There is a generational paradigm shift happening both with ag equipment dealers and the producers. Retiring producers and those that have gone out of business have left the door open to expansion. Across North America, the demand for technology, specialized product knowledge, and the decreasing number of producers has led to greater dealership consolidation. In order to create economies of scale, both sides will continue to grow. So what does this mean and how will it effect each other’s business? In my opinion, the next 5 years will have such a dramatic change the industry will be unrecognizable.
Farm consolidation over the last 3 decades has led to fewer, but larger production farms, while small lifestyle farms have risen in number and will drive demand of small farm equipment.
Dow and DuPont. Monsanto and Bayer. John Deere and Blue River Technology. AGCO and Precision Planting. In almost every segment of the agriculture industry — from chemical and seed, to farm equipment and technology — consolidation is taking place. And the cause of these major mergers is a direct reflection of what is taking place on the end user side: farm consolidation.
Over the last two decades, the agricultural equipment market has seen dramatic change — change that has had a huge impact on farm equipment manufacturers, dealers and customers. In this special report, Farm Equipment takes an in-depth look at the many factors that have been driving industry consolidation through the decades, and what to expect in the years ahead.
All aspects of the ag industry have been consolidating over the last several years, and it seems to have picked up recently. This is no different for farm equipment dealerships. Some of the consolidation is being led by the major equipment manufacturers, some of it is in response to farm consolidation (see “Farms Shrinking in Number, Growing in Size,” page 12), and still some is due to dealer owners exiting the industry.
Check out the newly redesigned Dealership Minds Summit website, with exclusive event photos, agenda and speaker information, video links and more. www.DealershipMindsSummit.com
Built on 90 years of expertise, Yetter Farm Equipment leads the agriculture industry in designing effective and innovative equipment for residue management, seedbed preparation, precision fertilizer placement, harvest attachments, strip-tillage, and more.
At Machinery Scope, we believe you deserve the best risk management solutions for your investments in heavy equipment. Since 2013, we have been proud to offer extended warranty, appraisals, and inspections. Machinery Scope is a family-owned business built on our experience in farming and equipment dealerships. We understand your business and provide a personalized and professional level of customer service. Machinery Scope has built a strong warranty product with our customers in mind, offering the same professional level of service from the time you get a quote, through the processing of a claim.
Finance Scope is able to provide the best financing opportunities for equipment dealers and customers through a diverse mix of lending companies under one single platform. Our large group of lenders, allows for competitive rates regardless of credit scores. Additionally, dealers and customers have access to the industry’s best expertise surrounding finance and lease structures, for all purposes, within the agricultural and construction industries. We provide all of this into one online platform to provide our customers with the best available tailored finance solution for their equipment.