ALL ABOUT TRACTORS

BY PAUL WALLEM

 Farm Equipment Magazine recently interviewed two principal managers of large farm equipment dealer groups. One represented a 26-dealer group, the other a five-group.

They were asked how the younger generation farmers want to be treated.

“Like buyers,” they both agreed. “They don’t want to be overlooked as they work alongside a 30-35 year customer of the dealership.”

A dealer sales rep who has worked closely with a long-time customer can easily direct his comments and attention to the older customer and ignore the younger person who is a son or partner. The two dealer managers have found that the younger generations want an adviser more than a relationship with the salesman.

For many dealer salespeople, that’s a difficult transition. Older salespeople have been accustomed to dropping in on good customers and spending time visiting. (That was my practice as a dealer back in the eighties). Today’s younger generation of farmers, many operating more acres, do not want unannounced visits. They expect the dealer sales rep to make an appointment and be on time. They often turn to their laptops for machinery specs and information.

Another common practice among the younger generation is doing business via text instead of in person. Typically, a text will be answered quickly, but a voicemail will receive a slow (or no) response.

Another growing change in dealer/customer relationships is the practice of purchasing equipment by email rather than signing a purchase order.

As with everything else, change is here. Dealerships and their customers are doing business in different ways.

A mind-boggling change for the future

At a recent Raven Industries display, a woman sat at a table occupied by a child’s slot-car race track. She wore a headpiece and showed deep concentration. She was controlling the slot cars with her mind! This level of mind control is called “Stage 5” of autonomy and is far into the future for use in agriculture. But the technology is here now. Amazing.

A unique offering in the electric tractor market

AMOS POWER, located in Cedar Falls, Iowa, is the AMOS autonomous electric tractor developer.

The tractor utilizes three independent motors, one for each track and a third for the PTO. The A3 model is a vineyard model. The A4 is designed for row-crop use. Each has 85 HP with 35 HP PTO.

The tractor price per horsepower has changed

As I looked at used tractor ads today, I was again glad I was no longer a farm equipment dealer. The incredible dollars a dealer has now in used equipment is a challenge as compared to our investment back in the 1980s.

I compared the price per horsepower on today’s market vs. the prices our dealership got in the 1980s. (I still have our old ads)

In 1981, we sold an International 1466 with 147 HP and 1835 hours for $17,500. That amounted to $119 per horsepower. The ad I’m looking at today lists a CaseIH Steiger 350 with 2,595 hours for $290,000. That comes to $828 per horsepower.

Granted, there is a 43-year difference between the two. However, the $119 vs. $828 is also very different.

The centerfold of farm life

Through the years of writing books about IH, I’ve interviewed many who grew up on a farm. Some are still farming, and some have other careers. The one thing everyone had in common was a vivid memory of their first experience with a tractor - either sitting on it for the first time and/or their first time driving.

No one has ever named a combine as their first farm memory. Or a horse-drawn hayrack. It’s always a memory of their first tractor experience.

The photos they sent always had a tractor. Even many years later – especially if they are a collector – their photos of favorites are never implements, combines or windrowers, but always tractors.

In conclusion, I’m convinced the tractor will ALWAYS be the centerfold of farm life.

Paul Wallem was raised on an Illinois dairy farm. He spent 13 years with corporate IH with domestic and foreign assignments. He resigned to own and operate two IH dealerships. He is the author of THE BREAKUP of IH and SUCCESSES & INDUSTRY FIRSTS of IH. See all his books on www.PaulWallem.com. Email comments to pwallem@aol.com.