Precision farming revenue numbers reached new heights for some dealers in 2022 despite an overall decline in growth, and the outlook for 2023 remains mostly positive according to the 10th annual Precision Farming Dealer benchmark study.

Time is running out to participate in the 9th annual Precision Farming Dealer Benchmark Study.

The Precision Farming Dealer 2020 Benchmark Study showed several shifts in dealers’ expectations for their future revenue. Topping the list of revenue sources considered important for growth was application technology hardware, reversing its 3-year downward trend.

Problem solving is often the linchpin of a dealership’s precision farming business. The last couple of years have tested the abilities of precision teams to overcome ongoing economic — and more recently — social challenges to maintain, if not grow revenue.

The results of the eighth annual Precision Farming Dealer benchmark study — with contributions from dozens of farm equipment dealers, input retailers and independent precision companies — trend toward a conservative reality and a cautious outlook for the majority of respondents.

This year has shown interesting new developments in market sentiments, with dealers continuing to slowly move away from hardware and steer sharply toward data management for future revenue, according to the seventh annual Precision Farming Dealer Benchmark Study.

Agronomic service is still a push-pull offering for dealers. Some have proactively embraced and invested in providing robust support options to customers that include soil sampling, data analysis and field prescriptions.

The more things change, the more they stay the same, at least in terms of how dealers are selling and servicing precision farming products. While strides have been made establishing precision as a standalone business, dealerships continue to seek a better balance between revenue generated by hardware sales and service.

Despite the downturn in the ag economy, precision farming dealers have largely maintained an ambitious sales outlook, banking on their ability to increase billable service and capture ROI-based revenue from new products.

The last 6 years have seen both subtle and dramatic shifts in dealer priorities with precision business. For the first few years, hardware held a firm grip on the most promising areas for future profit, but there has been a gradual shift in where dealers see their greatest growth potential.