2019 has seen interesting new developments in market sentiments, with dealers continuing to slowly move away from hardware and steer business objectives toward data management for future revenue, according to the seventh annual Precision Farming Benchmark Study.
Much has been made of autonomous advancements in the ag industry during the last few years, as a possible pathway to increased field efficiencies and a solution to labor shortages.
Managing a dealership hasn’t gotten any easier in recent years, and talking with leadership and large and small-store operations, some are still scratching their heads over where to take their precision business in the future.
Even in a challenging ag economy, dealerships are looking for opportunities which can strengthen the business for the future. Acquisitions and consolidation have long been a part of the farm equipment industry. But collaborations and partnerships, especially on the precision farming side, could be key in further developing this side of the business for dealers.
In-house agronomists and annual service contracts see jumps in 2019, while fewer rely on precision specialists for delivery of data management support.
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.
Summer is typically a prime timeframe for precision salespeople to engage customers on future purchasing decisions. But with many regions dealing with delayed planting this spring, precision specialists have perhaps put off having conversations with customers about technology additions or upgrades.
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 market challenges, a majority of dealers report measurable precision revenue growth in 2018, including nearly one-third seeing an increase of at least 8%.
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.
Strip-till farmers have typically been among the most progressive adopters of precision technology, embracing tools including variable-rate seeding, implement guidance and unmanned aerial vehicles. But RTK-level correction is often referred to as the most essential technology in a successful strip-till system, given the importance of accurately planting into a narrow strip of soil.
We had a front-row seat to the launch of AEF’s Agricultural Interoperability Network (AgIN) at AGRITECHNICA a few weeks ago, which promises to ease the process of data sharing for farmers and dealers.
DigiFarm VBN is a proven leader in providing RTK Correction Services across the Midwest and beyond, via cellular based RTK network. We have been in business since 2011 working with farmers, Ag retailers, and precision Ag dealers
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