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Esteemed Advisor

AGCO to buy Precision Planting?

Is it me or would AGCO be better off investing in more dealerships than spending big money on Precision Planting? We don't have any good AGCO dealers within a 50 mile radius. I looked at a couple Gleaner combines earlier this year and even emailed AGCO to find the nearest dealership that serviced Gleaner combines. They gave me the names and locations of dealers in my "area" but didn't know if they serviced combines. I got a new-to-me JD combine yesterday. Thoughts?

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Veteran Advisor

Re: AGCO to buy Precision Planting?

I completely concur that sophisticated dealer support is an AGCO weakness.  I'm willing to bet that AGCO is betting that there will be more and more data driven enterprises and they have to get a seat at the table or be left out.


The lack of strong dealers may mean to some of us that all the sophistication in the world won't matter if we can't get support.


I'm a rebel who doesn't like Apple or John Deere.  My last tractor is a Kubota.  Maybe AGCO is betting people like me will give up some convenience for a less expensive product and no green.  That is a risky bet.  Most of my friends are slowly migrating to Deere, especially the bigger ones.  It's kind of like "of course I'm successful, I run Deere."  


Few of us are really as objective as we'd like to think when it comes to farm machinery. 


Wasn't there regulator opposition to Deere buying PP?  10 years from now, assuming Deere builds the capability in house, will they not dominate the product line for that equipment?  What do you think?

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