Additional and sometimes confusing information began to slowly filter out from the U.S administration later in the day.

A ‘monkey with a machine gun’

“It’s like a monkey with a machine gun, they’re going in all different directions,” said Automotive Parts Manufacturers’ Association president Flavio Volpe during a televised interview on CBC the next day. “The fact they don’t understand this or don’t care is going to crash the U.S. auto sector.”

The belief this tariff would seriously harm the auto industry in all three countries was reiterated by University of Toronto professor Dimitry Anastakis, who spoke on an Energy Media podcast on Thursday.

“This is going to go down as one of the greatest own goals in economic and policy history. This is crazy.

“The auto industry is one of the most competitive and difficult industries in the world in the best of times. When you add in that we’re trying to make this transition from an ICE (Internal Combustion Engine) to EV (Electric Vehicle) future and face competition like China, which is already so far along, to turn around and disrupt and insert so much chaos into the North American sector when legacy manufacturers like Ford and Stellantis are just trying to catch up is asinine.”

According to Cox Automotive’s senior economist Jonathan Smoke, who spoke on an industry insights and sales forecast call, the tariffs will cause a significant reduction in industry output, raising new and used vehicle prices and force the elimination of some vehicle models.

“If there are no carveouts for autos, the tariffs would add $3,000 to U.S. made cars, and $6,000 or more on a vehicle assembled in Canada or Mexico. If tariffs go through this time, by mid April we expect disruption to all North American vehicle production, amounting to 20,000 fewer vehicles produced per day, which is about a 30 per cent hit to production.”

Disrupted production

The uncertainty caused by the on-again-off-again tariff threat has already disrupted production of some vehicles and slowed or stopped capital investments.

“A few weeks ago Ford announced it was going to delay the next generation F-150 because of all the chaos around tariffs that Trump has created,” said Anastakis. “So it’s not just hurting EV rollout, it’s hurting the very manufacturers Trump was supposed to protect and support.”

The goal of the tariffs, according to the U.S. president, is to bring automotive manufacturing back to the U.S. But currently there are about 700 different manufacturers in Ontario alone that supply components to the auto sector. Then there are many more in Mexico. It’s improbable to think they can all relocate to the U.S. in the short term to avoid tariffs.

Experts generally doubt the U.S. could ever return to the kind of manufacturing economy it had in the 1950s, especially when it comes to automotive production. Not all of those needed support sectors could operate economically in the U.S.

“There are some specializations in Canada,” said Anastakis. “Whether it’s tool and die, mold manufacturers, aluminum production — you cannot replicate that in the States. So these border tariffs are going to have a tremendous impact.”

Transition to electric vehicles

A critical goal for future viability of North American auto companies is to catch up to China in the transition to electric vehicles. China has all the resources it needs to form a complete supply chain in that production cycle, from raw materials through to manufacturing facilities. That gives it a key advantage in the EV market.

However, Canada was set to play a key role in bringing similar advantages to North American companies. It has critical minerals as well as new production facilities.

“When I saw this announcement that they were going to go through with this on automotive, I said to myself, ‘they’re popping champagne in Beijing,’” added Anastakis. “The United States hobbled its own industry without the Chinese having to lift a finger.

“There’s a very good chance in 10 years we’re all going to be driving Chinese EVs, whether they’re made in China or elsewhere in the world, because this is a pivot moment, it’s a paradigm shifting moment. I don’t know how the industry is able to recover from this, when they’re already facing such incredible burdens to begin with.”

“We’re at an interesting crossroads today in 2025,” agreed Smoke. “The problem is a substantial change in trade policy due to tariffs will be highly disruptive to North American vehicle production.”

Said Volpe: “Maybe he (Trump) has to send the U.S. over the edge, have hundreds of thousands of auto workers at home before he understands the depth of the problem he’s caused.”

The post ANALYSIS: U.S. auto sector tariffs an “own goal” appeared first on Country Guide.

A portion of those exports were straw choppers and weed seed control units, manufactured by Redekop at its plant near Saskatoon.

Redekop has farmer customers in Montana, North Dakota, Kansas and other states who want a better chopper on their combine. The Redekop straw chopper cuts straw into fine pieces and evenly distributes the residue across the field, which is desirable for growers.

“We tend to focus on small grains and the higher volume of residue, where you have lots of straw,” Trevor Thiessen, chief executive officer of Redekop Manufacturing, said while sitting at a booth at the Commodity Classic, a trade show held in Denver March 2-4.

U.S. sales growth

Redekop sales to the U.S. have increased in the last five years as word spread about the straw choppers and Redekop’s weed seed destructor.

However, sales were soft in 2024 due to the downturn in the ag equipment market.

“Farmers were hesitant to spend a lot of money … 2024 was a hard year for a lot of equipment guys,” Thiessen said.

Last year was challenging, but 2025 could be more difficult for Redekop and other Canadian manufacturers.

U.S. president Donald Trump imposed 25 per cent tariffs on all goods from Canada March 4, although the tariff rate and implementation date may have changed by the Western Producer’s March 10 press time.

A spokesperson for another manufacturer of ag equipment on the Prairies, who also attended the Commodity Classic, said his company acted before March 4 to avoid the tariffs. The Manitoba business moved machinery across the border this winter and should have sufficient stock in the U.S. for many months of sales.

Shipping ahead of tariffs

Redekop took similar action in February.

“We shipped pretty much 98 per cent of our (U.S.) distributor’s order already,” Thiessen said.

Exporting farm equipment to the U.S. has become a larger part of Saskatchewan’s economy.

Sales climbed by $500 million from 2019-23, reaching $834 million in 2023.

“There certainly is growth in the agricultural machinery and equipment exports from Saskatchewan specifically to the U.S.,” said Peter Siarkos, director of manufacturing and technology with the Saskatchewan Trade and Export Partnership, which helps provincial businesses sell their products to the world.

Exports of ag equipment have created strong relationships between Saskatchewan firms and American buyers, but explaining the impact of tariffs and who will cover the cost can get awkward.

“When I talk to U.S. farmers and customers, I’m not sure everyone fully understands that the importer, i.e. the U.S. farmer, is the one who is going to have to pay the premium,” Thiessen said.

Who absorbs the tariffs?

To maintain American sales, Redekop and other Canadian makers of ag equipment may absorb a portion of the 25 per cent tariff. The customer will take on the rest.

“I think we’ll be fine.… Maybe we take a margin hit (on U.S. sales) for a period of time, but it’s not going to cripple our business.”

As of March 2025, it’s impossible to predict Canada’s trade relationship with the U.S for the next four years. It could be OK, bad or horrific.

If tariffs do stick around for years, Thiessen is considering a branch plant or a partnership to do some manufacturing in the U.S.

“We’ll make these core components, you assemble,” he said, describing one scenario.

“Set up a (U.S.) assembly plant, which would (maybe) get us past the tariff.”

Such decisions are a few years down the road, depending on what happens with trade and tariffs.

In the shorter term, Redekop Manufacturing wants to diversify sales to other parts the world. It has set up a company in South America to sell straw choppers and weed seed destructors to farmers in Argentina and Brazil, Thiessen said.

“(We’re in the) second year of testing in Brazil and the first full season of selling in Argentina.”

The post Prairie equipment manufacturers adjust to tariffs appeared first on Country Guide.

Kip Eideberg, vice-president of government and industry relations with the Association of Equipment Manufacturers (AEM), said it’s very challenging right now to talk to Republicans about the benefits of trade.

“It is a frustration … that there seems to be precious few Republicans on Capitol Hill who are for free and fair trade,” said Eideberg while standing beside the AEM booth at the Commodity Classic trade show in Denver March 3.

“This used to be a Republican core issue (free trade). Where have all those Republicans gone?”

‘Tariffs are taxes’

Despite the frustrations, the AEM and other groups continue to lobby politicians and members of Trump’s cabinet about the danger of tariffs.

The AEM, which represents manufacturers of farm and construction machinery is still trying to talk with politicians and deliver a clear message.

“Our position is very simple. Tariffs are taxes. They’re taxes on American manufacturers. They’re taxes on American farmers…. This is no way to bolster U.S. manufacturing,” said Eideberg, who has been listed as one of the top lobbyists in Washington for the last six years.

Eideberg and others are still able to get access to policy-makers and powerful people in the American government.

At the Commodity Classic in Denver, he walked the trade show floor with U.S. agriculture secretary Brooke Rollins.

His message to her was that tariffs on Canada and other countries are damaging for American farmers.

“These tariffs are going to make all of this great (farm) equipment, on display here, more expensive. That will lead to fewer American jobs.”

Listening to farmers?

Rollins, who spoke to the media at the Commodity Classic, said she’s listening to such messages. She has only been in the role of ag secretary for a couple of weeks but has met with hundreds of farmers.

Many of them are worried about tariffs and the consequences for America’s ag industry, she said.

“That is my role,” Rollins said.

“To ensure that those concerns are heard, effectively.”

That’s positive for groups like AEM, but Eideberg believes that Trump is hell bent on imposing duties on Canada, Mexico and other countries.

The U.S. government will proceed with tariffs on a wide range of goods and products, which will have economic consequences.

The American public and the economy will have to suffer before Trump changes his mind, Eideberg said.

“I think the one thing that’s going to perhaps ensure that the tariffs come off or are not fully implemented is a recession,” he said.

“Tariffs are inflationary and are going to drive up (inflation)…. It’s a shame we have to rely on something like a recession … unfortunately.”

Another possibility is a re-negotiation of the Canada-U.S.-Mexico Agreement, provided President Trump can tell his supporters he got a “win” in the new deal.

—Updated – adds photo of Kip Eideberg

The post Anti-tariff lobbyists struggle in Washington appeared first on Country Guide.

But just because the latest whiz-bang creation can, for the sake of argument, combine, check the markets, and cook an egg, all while holding a conversation, doesn’t necessarily mean it meets your vision for your farm.

Considerations

Fortunately, producers aren’t so tempted by the latest shiny thing that they’ll bring home without running the decision to buy it or not to buy through numerous considerations that are part of their vision for their farm and its future growth.

Darren Bond, a farm management specialist with Manitoba Agriculture, says farmers should ask some questions: “Does this save them time in completing jobs on the farm? Does this allow them to do tasks more efficiently to save money? Will this purchase allow them to produce more or produce a higher quality product and increase profitability on the farm?”

Producers will also consider whether a potential buy can reduce risk on their farm.

“Generally speaking, if the new purchase doesn’t accomplish one of these goals, the purchase does not go ahead,” says Bond.

How farmers weigh these variables will vary from operation to operation.

“Depending on the farmer’s vision and risk appetite for their farm, they will usually weigh these goals differently and prioritize investments in equipment and technology differently than other farms,” says Bond.

Importance of a business vision

Bond finds most family farms have a common vision for their farm.

“While some family farms and farmers change over time, grow apart and split their operations to become independent of each other, the vast majority of family farms stick together and evolve together,” says Bond.

Equipment and technology purchasing decisions are just one part of the overall vision for success for the farm, he says.

“Considering how costly farming has become and the amount of risk involved, it’s going to become even more important that family members on a family farm have a unified vision and are on the same page from a strategic planning perspective,” says Bond.

Budget tightening in 2025

Farm Credit Canada (FCC) senior economist Justin Shepherd advises farmers to match their technology or equipment purchases to their farm’s vision where it makes sense for their budget.

“The key for farmers is to know their financial numbers and make sure that the operation can afford it today, even if the tech enhancements may support a longer-term vision,” explains Shepherd. “Producers need to always ask themselves: Do the tech improvements, whether its enhancing yield, product quality, or a reduction in labour hours, balance my return on investment?”

Bond says that with the sector heading for tighter margins in 2025, many farmers are likely to be even more careful when considering any new equipment or technology purchases.

“New purchases will have to have a positive cost-benefit outcome with respect to increased productivity or reducing overall costs for the purchase to be made,” says Bond. “Having a clear vision on needs versus wants is incredibly important for success in managing in a tight margin environment.”

FCC’s Leigh Anderson adds that with falling commodity prices, high operating costs and lower profits, farmers are placing a greater emphasis on their price per acre equipment costs. The senior economist says that farmers are seeking cost saving measures, which include delaying purchases and planning to further reduce equipment costs.

The overall effect will be weaker demand for large farm equipment, which will in turn pressure sales and prices in 2025, FCC predicted in November 2024.

But Anderson adds that as demand slows and prices adjust, there could be buying opportunities for farmers who are considering investing in new equipment.

“Lower interest rates, combined with strong revenues in select sectors, could make it a great time to invest in new equipment as it’s more affordable per acre,” she says, but cautions that a lower Canadian dollar versus the U.S. greenback could see higher imported equipment prices. 

Industry adjustments

Likely in the face of these anticipated changes, equipment makers are making adjustments,

Scott Garvey, a senior editor for machinery and equipment at Glacier FarmMedia, points out that John Deere and AGCO are starting to focus on the retrofit market, offering technology upgrades for existing machines, and thereby allowing farmers to get higher levels of digital capability and efficiency without needing to buy an entirely new machine.

Also, buyers can now get brands to unlock some high-tech features built into their equipment for a limited time, based on acreage or hours used, he says.

“That allows even smaller-scale growers to be able to afford more advanced features, such as spot spraying. We will see more of this in the future,” says Garvey.

The post The pros and cons of new technologies appeared first on Country Guide.

Recently, I filled in as a temporary replacement for a driver at another dealership, delivering and picking up equipment. There was a little over 40 years between those two jobs. The truck I used this time was a T800 Kenworth pulling a tridem RGN trailer with loads that have sometimes pushed the truck’s gross weight north of 80,000 pounds — with a permit, of course.

That’s how the scale of farm equipment has changed in my lifetime. And the farmer that took delivery of that earlier combine would laugh out loud at the sticker prices for new equipment these days.

Farm size and machinery expectations have grown significantly over the last 40 years. But not on every farm. There are still many farms without high-end machines and the crew of employees to operate them, including many that are more of a lifestyle operation with income supplemented from off-farm jobs. YouTube is full of vloggers who document their day-to-day adventures on those types of farms.

For many of these farmers, the idea of buying brand new equipment has become more of an aspiration than a reality. Instead, they’re making the most of used machinery.

New iron and new tech

Many years ago I had a conversation in Germany about how most young German farmers dreamed of one day owning a Fendt tractor. Fendts, at the time, were among the few tractors with a very high level of technology, and their price tag reflected that. It took young farmers quite a few years to build a big enough bank account to buy one.

Famers took pride in owning German-built machines. On top of the comfort and convenience Fendt offered, they were also a kind of status symbol.

While there’s nothing quite like that new cab smell — just like that new car smell — is it still practical for many farm operations to consider buying new? Or is it even necessary? An average high-horsepower MFWD tractor will be somewhere in the vicinity of $500,000, depending on horsepower. A new top-of-the-line combine or four-wheel drive tractor can easily top $1 million.

A machinery brand executive once made a comment to me that spelled out pretty clearly what manufacturers see as the big reason more farmers are quicker to trade in for new machines.

“All machinery built in the last decade or two can still go out into the field and do the job very satisfactorily,” he said. (I’d go so far as to stretch that age limit quite a bit further in many cases.) “Incorporating advanced technology into new equipment is what brands will need to do now and into the future to convince farmers to spend their money on the newest machines.”

New technology gives buyers something they don’t already have in their existing equipment. Brands are spending a lot on R&D to make machines smarter and to automate as many features as possible, with full automation on the horizon.

“Productivity and yield for farmers … that’s where our (R&D) investment is going,” said CNH Industrial’s CEO Scott Wine during a technology day presentation in the spring of 2023.

Smart machines and automation can help increase efficiency and raise yields for sure, but the trade-off is the price of admission, so to speak. And the net return, if any, will depend on each operation’s specifics and needs.

How old can you go?

The year-end numbers on a balance sheet are also important for those choosing older, lower-cost equipment. But there are other factors besides affordability.

New equipment under warranty is likely to perform pretty well with limited downtime. Although it’s likely, it’s not a given. I once bought a new tractor and after just 25 hours on the clock it had to go back to the dealer for a major rear-end overhaul due to faulty assembly at the factory. The model was so new some parts had to be shipped in from Europe. It spent weeks sitting at the dealership.

My case was obviously an extreme one. Typically, when a new machine breaks down, a dealership technician will soon head out to determine the problem and fix it on warranty. And that’s important in some operations. But that kind of reliability may come with significant stress associated with living with the size of loan or lease payments.

It all means the cost of ownership for new machines is predictable, but very high. By comparison, the cost of running used equipment is likely to be lower but not as predictable. An older machine might perform flawlessly one season and leave you stranded the next.

Is that a stress that’s more suited to your personality and farming considerations than losing sleep over a finance payment?

If choosing the used equipment option, the first thing to think about is how old do you want to go? Here’s an example of what needs to be considered.

Ritchie Bros. Auctioneers recently sold a 1982 875 Versatile tractor at a sale for $29,000. They also sold a 2017 400 Versatile for $355,000. Those are both within the price range you’d expect.

The two tractors have similar capabilities with horsepower ratings of 360 and 400, respectively. But they have very different purchase prices and probable reliability levels, not to mention comfort levels. Which will best meet your needs and fit your definition of an ideal purchase? Or are you operating on a scale that allows you to buy both and keep the old 875 in reserve for some jobs, just in case? Compared to the price of a single brand new 400 horsepower model, you’re likely still money ahead.

But consider that the 875 will have a Cummins engine with a mechanical injection pump. No pesky computer, sensors or emissions system to fail, causing the tractor to derate its power or quit completely. Computer, electronics and emissions systems are the most common failure points on modern machines of all types, and often only a dealership service department can identify those problems and correct them, because of the proprietary software needed to diagnose them.

The 875 won’t give you any of that trouble. And if you need to completely overhaul its 855 Cummins engine, the parts are still readily available with rebuild kits available for around $2,500.

The cost of an overhaul kit for the QSM11 Cummins in the 400 is similar, but it is an electronically controlled engine. That means the 875 overhaul might be simpler to tackle in their farm workshop for anyone who isn’t as skilled as a Red Seal mechanic.

If you’re more than a little handy with a set of wrenches, you could opt for the 875, invest some money in parts and time and get a pretty reliable machine for well under $50,000, a tiny fraction of the cost of a new tractor of similar size, although finding some replacement components for older machines may require hunting for a donor machine at one of the few remaining wrecking yards, or looking for a parts tractor on Kijiji.

In this case, investing in a very good and well-equipped farm shop makes a lot of sense.

On the other hand, for someone who isn’t that handy in the shop, the newer, lower-hour 400 may be the better bet, unless they have a good friend who just happens to be a diesel mechanic.

Old dogs, new tricks

Maybe you want some of that new technology that goes well beyond guidance, such as features on the seed drill like zone control to prevent overlaps, or variable rate capability. New machines will definitely give you that, but increasingly those kinds of features can be added to older equipment. Going old school doesn’t necessarily mean going without some level of technology.

Want to put GPS auto guidance on that 875, which didn’t come auto-steer ready from the factory? Outback Guidance, for one, can set you up with a bolt-on kit for between $10,000 and $15,000. Raven’s RCM (Rate Control Module) system can give a variety of older drills variable-rate capability, as long as they have hydraulic metering systems.

Getting RCM installed on drills may require some specialized assistance from companies like My Precision Ag Ltd. in Rocanville, Sask., which specializes in that.

“You can’t just take it out of the box, plug it in and go,” said Matthew Yanick, owner of My Precision, when I spoke with him this past summer. “You have to change some connections and that kind of stuff.

“There are more and more people wanting to upgrade tanks to get the newer technology.” he said. “They just want to be able to do what the new tanks can do.”

If you want to add sectional control to a drill, there are some after-market manufacturers, such as Romafa Metal Works in Arborg, Man., that build updated metering systems to accommodate that technology. Romafra offers new metering boxes for John Deere, Flexi Coil and Morris drills.

Of course, there are still older, cheaper seeding equipment options other than air drills that can get the job done efficiently and won’t put comparable hydraulic demands on a tractor. But they aren’t compatible with VR or sectional control technology. So once again the question is: “Will the rate of return justify the increased investment in implements to put behind the tractor?”

Increasingly, major brands are taking notice of the farming segment that can’t or won’t pay the kind of money they demand for a new machine. They’re starting to look seriously at the retrofit market as another revenue stream for their businesses. That’s good news for producers running older machines and wanting to get more out of them.

In his third-quarter earnings address to shareholders, AGCO president and CEO Eric Hansotia said the brand aims to offer “autonomous retrofit solutions” for grain cart hauling by 2025. It will also offer a retrofit targeted-spraying system by 2024 that will work on any brand of machine. That’s two full years ahead of the company’s goal of releasing the system as an OEM option on new sprayers.

John Deere, too, is offering a limited range of upgrades for its late-model S Series combines and sprayers to bring their features a little closer to the current range of machines.

For its part, CNH Industrial spelled out just how important precision farming technology will be to the company in the coming years. A good deal of their revenues will come from providing retrofit solutions to farmers.

“CNH Industrial’s full year 2022 agriculture net sales are expected to include an estimated $900 million contribution coming exclusively from precision technology components,” reads the company’s press statement from early 2023. “We forecast a 10 to 15 per cent annual growth rate across the next two to three years and are aggressively pursuing an estimated US$1 billion in 2023 net sales contribution from precision technology components. Precision technology components include technology contained in whole goods, retrofit components and Raven third-party sales.”

It means a good portion of the digital wizardry on the newest and shiniest machines can now be bolted on to older equipment. Is that food for thought?

– This article was originally published in the January 2024 issue of Country Guide.

The post Summer Series: Old machines,new technology appeared first on Country Guide.

To help develop and bring that product to market, the Ruuds entered into a joint agreement between their startup firm, Nature’s Net Wrap, and CNH Ventures, the investing arm of the equipment manufacturer CNH Industrial and parent company behind Case IH and New Holland.

The compostable twine is being sold by Case IH and New Holland dealers starting this spring.

Increasingly, major equipment brands are keeping an eye out for young startup companies like Nature’s Net Wrap that have an innovative technology on their boards. And, as in this case, they are pumping investment money into them to help develop and incorporate that technology into their own product line.

“We launched CNH Ventures a couple of years ago,” points out Michele Lombardi, senior vice-president of corporate development at CNH. “Our purpose is joining forces with innovative teams of people that are working on disruptive technologies or new ideas, primarily in the ag tech space.”

Since starting, CNH Ventures has invested in 10 fledgling firms and bought another one outright, Lombardi says, “It’s a strategic investment… we invest to learn. And then, obviously, we seek a good financial return as well.”

“Sometimes we do some hires,” adds Lombardi. “We find a little team that has a good technology, good IP (intellectual property) or a good way of working and we just scoop them up and they are fully integrated into our teams as if they were always part of it. In some cases that’s the right thing to do.”

Although CNH’s prime objective isn’t to take over control of these firms or hire the individuals that populate them, they did buy Augmenta for its electronic eye technology, and increased their ownership share to 51 per cent in another.

Now, a similar strategy is underway in a slightly different program over at John Deere, which also looks to partner with small startups to enhance its R&D. Deere calls their program the Startup Collaborator, and in January it announced its list of six tech firms it will work with through the course of 2024 on a one-year term.

Deere launched the Startup Collaborator program in 2019, with a new group each calendar year.

“We’re really focused on mutual learning across the aisle in the companies, with the focus of solving customer problems in the field,” says Cody Sorge, business development manager with the Intelligent Solutions Group at John Deere.

“It’s a very light agreement we have,” Sorge emphasizes. “There’s no investment or IP involved. We get to work with these companies for a 12-month period, starting (each) January.

“They get a sponsor — or mentor — from the Deere team and a project lead to work with them. Then they go work on a project that is mutually beneficial… and we share information.”

Testing the limits

Whether you’re looking to do business with CNH or Deere, however, you’ll find that neither firm thinks of tech startups as a replacement for internal R&D. Instead, it’s a complementary or additional avenue to increase the number of technologies beyond what their in-house engineers can take on, especially the kinds of technologies that have been the main focus of the smaller companies.

The goal is for the big company to get a head start in the evolution of a product.

“Recently, this arm (CNH Ventures) has helped us to accelerate exploration of new spaces and to test some assumptions,” says Lombardi. “Before, we probably couldn’t do it as effectively because we would probably have had to acquire a company to do it or go through an entire internal development.

“It’s not replacing anything, it’s adding an additional option.”

The same is true at John Deere.

“What (Deere’s) program was founded for was finding opportunities with startup companies where technologies are being developed,” says Sorge, who goes on to describe what they’re looking for: “Really agile, focused teams that can move really quickly solving customer problems, making this technology available. Deere’s a large tech company. We might not be as focused or be able to move as quickly, so there’s a perfect opportunity to learn together.”

Who wins the contract?

Deere and CNH also have similar decision processes for figuring out which startups to work with. The main focus is on small firms that are working in the tech sector and have or are attempting to develop systems that could be a benefit to the larger companies.

“It’s a mix of things (we look for),” says Lombardi. “We predetermine some spaces we are interested in. It might be vision AI, it might robotics, these kinds of things. Once we have that direction, we then go out and build a map of all the players in that space. That creates a dynamic list of all the investments we could make and collaborate. We then go out and speak to many of them. In some cases they might not be interested. In some cases it might be the right target at the right time.

“We tend to work with a wider range of companies, not just the ones we invest in. We might start dialogue with these companies, even if we don’t invest.

“We look at how their technology is different from that around them. Why does that technology have a greater opportunity to be successful. We think how does that technology fit with our road map specifically? Going down the line, is this something we would be interested in including in our products? We participate in learning with those companies through an investment. If some of them become so interesting we think we should incorporate them, then we end up acquiring them.”

The investments made through the CNH Ventures initiative create a portfolio of small startups that can generate a financial return. In the case of Nature’s Net Wrap, it also adds a product that can be sold through CNH dealerships, although Lombardi says exclusivity in selling the products isn’t necessarily a requirement. In fact, CNH encourages the startups to forge their own way rather than limiting them.

“That’s a never-ending discussion we have internally,” Lombardi says. “All our companies, except one, have or will have in the future products that can be sold through our network. We do not force them to sell through our network. It’s potentially limiting to the growth of the companies, forcing them to only work with you. What happens is they lose that entrepreneurship. We drive them to develop their own commercial capability in order to be able to explore the world on their own. Through which, by the way, we learn too.”

At Deere, when it comes to selecting partners to collaborate with, the decision process follows a kind of parallel trajectory.

“Back in 2019 we asked, how can we get really connected to startups? How can we get them connected to us and learn together to see what’s possible?” says Sorge. “We start internally by looking at what we want to go and learn and what opportunities our customers have to solve. Then we’ll explore what companies are out there.

“It all starts at customers, identifying those areas of interest and then plugging in the right companies that fit. We want to make sure there are truly mutual benefits (for startups and Deere).”

Picking winners means taking a close look at more than just the advanced technologies that the startups are pursuing. It can be a bit of a Goldilocks story, finding the startups that are just right.

“We want to make sure they’re at the right stage,” says Sorge. “Making sure they’re early enough, a startup, and not too far along, they’re at the right stage. We’re trying to benefit each other in a win-win scenario.”

The big questions

“We clearly look at the management team,” adds Lombardi. “Do they have that spark in their eyes? Will they be able to continue the development or are they exhausted by what they’ve brought to the table and that’s it?

“If we invest, are they going to be loyal? Will they stay with the company or fly away like a butterfly and do something else? All these thoughts then become important elements in the decision-making, Are we going to put in some capital and commit longer term with these guys?”

Deere doesn’t extend the one-year time frame startups can stay in the Collaborator program, but neither does it rule out maintaining a relationship with a small firm that has impressed it. An example of a company that started off in the Collaborator program and ended up in the Deere family is Bear Flag Robotics in California. It’s a company that had been specializing in developing an add-on full autonomy system for Deere tractors. That is now the technology behind Deere’s autonomous 8R tractor offering, which is in the early stages of commercialization.

“There’s been companies invested in and acquired, even though that’s not the intent of what we’re trying to do,” says Sorge. “It’s really around go explore, learn and identify what we can learn together. And after that, see what happens. We try not to put a clear end on what happens.”

At all large organizations there can be a lot of top-down corporate standardization in procedures and rules regarding how things should be done. Inserting small agile, entrepreneurial firms with their own, often fast and loose processes can be a disruptor when it comes to how R&D gets done.

“We have our legacy approach, and the startups are blasphemous,” says Lombardi with a smile. “They go in and do things upside down and completely different. It’s a horror reaction from our team every time they see it. But it actually gets them thinking and makes them more agile, I think.

“Our ventures initiative is giving to CNH, as a team, far more than any potential financial return. It has truly accelerated our innovation capability by exposing us to different ideas and different ways of innovating.”

Both Lombardi and Sorge believe the approach has paid off, and each has major plans to continue their respective programs.

“I think it’s a wild success,” says Sorge. “At the end of year, we’re always blown away. It’s hard to go and measure, but I think in gaining awareness to technology, startups getting awareness to more customer problems to solve, awareness to Deere and how we work… those are the main measurements of success.”

Says Lombardi, “We like it. We’re learning a lot. It’s been successful. We’ll keep on investing.”

The post Joining forces for new innovations appeared first on Country Guide.

The completion of the transaction was subject to certain regulatory approvals which have all been met, Linamar said in a news release.

Linamar, best known as an auto parts manufacturer, announced it would acquire the Saskatchewan-based firm in late December.

“Linamar’s long term vision is to focus on six markets where we see significant market and technology evolution over the coming decades as a result of key global trends that are under way,” said Linda Hasenfratz, Linamar’s executive chair and CEO, during an online press conference in December. “Food and agriculture is a key market in this long-term vision, and we are rapidly enhancing our footprint in that market.

“We’re calling this our third down project,” added Jim Jarrell, Linamar president and COO. “This is the third short-line acquisition we’ve done to build our powerhouse company, to hit the strategy of feeding the world. If you go back to the day when we bought MacDon, this (Bourgault) was a clear target and discussion point we thought was complimentary. Also as part of the transaction we’re acquiring the business of Freeform plastics and the Highline manufacturing line”

Both Freeform Plastics, which builds plastic tanks for ag applications, and Highline, an implement brand, are divisions of Bourgault.

Hasenfratz said the focus at Linamar is on acquiring shortline equipment manufacturers that produce specialized products which the major manufacturers don’t hold a dominant market share in.

The deal saw Linamar buy 100 per cent equity in Bourgault for CAD $640 million. Current president Gerry Bourgault will step away from the company, although the remainder of the management team will remain in place.

Linamar said it doubled MacDon’s business if five years and hopes to do the same with Bourgault.

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“Linamar’s long term vision is to focus on six markets where we see significant market and technology evolution over the coming decades as a result of key global trends that are under way,” said Linda Hasenfratz, Linamar’s executive chair and CEO, during an online press conference. “Food and agriculture is a key market in this long-term vision, and we are rapidly enhancing our footprint in that market.

“I feel like our team has really hit it out of the park this year, finalizing three acquisitions. All three business bringing excellent technology to the table and strategic value.”

“We’re calling this our third down project,” added Jim Jarrell, Linamar president and COO. “This is the third short-line acquisition we’ve done to build our powerhouse company, to hit the strategy of feeding the world. If you go back to the day when we bought MacDon, this (Bourgault) was a clear target and discussion point we thought was complimentary. Also as part of the transaction we’re acquiring the business of Freeform plastics and the Highline manufacturing line”

Both Freeform Plastics, which builds plastic tanks for ag applications, and Highline, an implement brand, are divisions of Bourgault.

Hasenfratz said the focus at Linamar is on acquiring shortline equipment manufacturers that produce specialized products which the major manufacturers don’t hold a dominant market share in.

In the press release announcing the takeover, current Bourgault president Gerry Bourgault commented, “We are excited to have our team of over nine hundred people in Saskatchewan, and over one thousand worldwide, join the Linamar family. Linamar has a proven track record for not only successfully integrating acquired companies, but also for their manufacturing expertise and business execution overall.”

The deal will see Linamar take 100 per cent equity in Bourgault for CAD $640 million as current president Gerry Bourgault steps away from the company, although the remainder of the management team will remain in place.

“Bourgault is a company we’ve long had our eye on,” said Hasenfratz. “We like the technology. We like how the business is run and how it complimented our existing lineup of products. So we’ve been talking to them on and off. The timing was right. The family was ready to make an exit. It comes at a time when all of our business can complement and create growth.”

When it acquired MacDon, that company had sales of roughly $500 million, about the same as Bourgault does now. Linamar has managed to push MacDon’s current sales into the range of $1 billion. Hasenfratz expects to be able to achieve the same level of growth with Bourgault. She thinks the company can do that by increasing Bourgault’s global reach and cutting manufacturing costs by including it in Linemar’s current procurement processes.

“We have the ability to link and leverage our purchasing efforts,” confirmed Jarrell.

“We see excellent growth potential with the business,” Hasenfratz added. “It’s not dissimilar in size to what MacDon was when we acquired it five years ago. We are selling now in more than 30 countries with nearly 2,500 dealers and distributors around the world. We’ve really created quite a broad strategy around our agricultural products.”

The deal is expected to be finalized in the first quarter of 2024.

Said Hasenfratz: “We doubled MacDon’s business in five years. We hope to do the same with Bourgault.”

The post Bourgault becomes third shortliner acquired by Linamar since 2017 appeared first on Country Guide.

1. There are signs that the scale of farm equipment is hitting its maximum, not just for Europe.
Farm equipment around the world has continued to grow in size and weight. But that’s making it more difficult to get those machines down the road efficiently and a challenge to reduce the soil impact of more weight.

Two of the major product launches at Agritechnica were huge in their power potential, but they both included elements that showed that engineers were trying to get their size under control, even if the horsepower or throughput increased. Many people point to Europe’s narrow roads as a driver, but anyone operating a combine down a Canadian road also knows how challenging it’s become.

The New Holland CR11, is a massive machine, as are all modern combines. However the engineers at New Holland kept the physical size and weight the same as the CR10 models, despite adding significant horsepower (to 775) and threshing capacity (rotor length was increased by 50 per cent). They did this by changing the orientation of the engine to align with the direction and tilt of the rotors, and they then could drive some power down through the rotors to the front of the machine, instead of routing that power into belts outside of the main body of the combine.

Massey Ferguson’s new high horsepower 9S tractor has a range of 285 to 425 horsepower, but it weighs less than most other large tractors per horsepower. Massey is quick to point out that the tractor can carry a lot more weight if necessary, but it can be run lighter. It also has an option for a tire inflation adjustment system to reduce the impact on soil.

2. Autonomous power systems that perform their tasks in fields without humans continue to grow in number.
Numerous companies had prototypes or concepts at Agritechnica, including implement companies like Kuhn and Lemken. However, there are few autonomous units ready for the market. There are exceptions including Naio, the French company that makes robots mostly for horticulture markets and which has a number of its units operating in Ontario through Haggerty Ag Robotics. The company is currently building out its global dealer market, which means it has a product to sell.

AgXeed (pronounced as they told me Ag – ceed) is a Dutch company that is also building a dealer network as it now has units running in 20 countries and is making sales. AgXeed has three different units that would replace tractors in field situations versus Naio which is replacing mostly human tasks like weeding and crop monitoring. In discussion with both companies, it’s obvious that they’re thinking about liability, and safety, not just making the technology work, and I believe that for farmers to use the technology, they will need more of a partnership with their suppliers, as someone will have to set the boundaries of the field and whoever does that will take on some liability.

AgXeed is also thinking about standardizing the interface between implements and power units and has worked to create an independent organization with Claas and Amazone to help set those standards. The standards also would apply to the interaction between tractors driven by people in the same field as autonomous units to coordinate their operation.

This is an important step and shows maturity in the autonomy market. We all remember the many standards that existed as data started to be recorded in farm machines and how much of that data was siloed. Much of it has now been freed by more standardization and integrations.

3. There will be electrification in large machinery in the future, but most of the power will continue to be supplied by combustible fuels for large horsepower machines.

Several companies at Agritechnica showcased a variety of new engines, which will handle different types of fuel. Most major tractor companies now have most of their diesel engines that can also use biodiesel made from vegetable wastes or oilseeds. Many also now have hydrogen engines in development, along with hybrids. Hybrid cars operate by supplementing the highest fuel demand periods with electricity and tractors and combines will likely do the same. That’s for high-horsepower tractors. For those under 100 hp, there will be a cascade of electrified options, as many companies, from CaseIH to John Deere to Claas, Kubota, Fendt, Landini and others we don’t see in much North America like Tafe, had under 100 HP electrified tractors on their displays.

4. There are increasing numbers of sensors being added everywhere in agriculture equipment, but at some point I expect there will be some of them that won’t last in the market as they won’t make financial sense. Take Fendt’s mower conditioner which can add more conditioning to areas of a hay field with more biomass.

There are currently three ways the Fendt conditioner will work: 1. By the operator in the cab turning it on depending on what they observe in the field. 2.  By sensing with a drone and through a map set and with that data loaded into the tractor path control and 3. On-board sensors that measure biomass as the tractor mows through the field. I’m going to guess that the operator sensor will be the simplest, easiest and most economical.

5. As one of the world’s leading exporters of agricultural products, Canada should have a larger influence outside of the country in machinery and services. Some large Canadian agriculture companies came to play at Agritechnica, including grain storage company AGI and MacDon, which continues to grow its influence around the world as the draper head expert. A MacDon head is on the new New Holland CR11 combine for example.

But maybe Canadian influence doesn’t have to be in machinery, maybe it can be in targeted expertise. Bushel Plus, the agile and creative startup from Manitoba that started with a pan to measure grain loss from combines, now has 30 employees and is offering combine training around the world, from Europe to Australia to the southern United States.

– John Greig is a senior editor with Glacier FarmMedia. Watch for much more detail on these and many more stories and videos from Agritechnica in our Glacier FarmMedia newspapers and websites.

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Agritechnica is the world’s largest agriculture machinery show, drawing more than 400,000 people from around the world to Hannover, Germany. Glacier FarmMedia Senior Technology Editor John Greig was there and summarized the major product launches and some of the ag-tech industry trends he observed.

– John Greig is a senior editor with Glacier FarmMedia. Watch for much more detail on these and many more stories and videos from Agritechnica in our Glacier FarmMedia newspapers and websites.

The post Agritechnica wrap-up: New combines, tractors and industry trends appeared first on Country Guide.