55 Years And Counting From The Tractor Seat

 By Bill Whitman

 Historically, farmers and ranchers avoid the legal arena like the plague. A lot of our vendors have unfortunately incorporated that attitude into their business model. This article will focus on the equipment industry, but I could also outline many examples in the feed and livestock arenas as well.

Most people that read my articles know that I watch several FarmTube channels regularly on YouTube. There are 10 channels that I follow weekly and in the past week, seven of these channels have been upset over the cost of parts and problems with service. I’m just listening to a video where Matt is changing the bearings on the feeder house of his combine. He priced the bearings from the dealer at $176 each, from his local parts store was $26.

Before I go on to a specific service issue in Michigan, I want everyone to know that I want… we need, for the dealer and manufacturer to be successful. As American farmers, we are proud and supportive of the brands we use and have served us well for decades. We want that relationship to continue but they must accept the fact that we must survive to be customers in their future as well. Again, we fully understand that dealers have debt to service and when new equipment isn’t selling, the dealer looks to the service/parts department to generate the income necessary to service their debt. Unfortunately, too many of the dealerships are owned by a corporation with many dealerships and on the local level, they have forgotten the importance of local relationships. So, in short, the manufacturer needs to hear this: they must find a way to support their dealerships in a way that does not put unreasonable pressures on the farming operation. Let me give you an example.

In Charlevoix, Mich., there is a century dairy farm that uses older (well maintained) tractors and equipment of a certain color. Three years ago, their big tractor (a tractor 30-plus years old with 4,500 hours) had a major breakdown and was sent to the dealership for repair. After spending tens of thousands of dollars, the tractor failed with the same problem within an hour of returning to service. 

The dealership had been purchased by a corporation a couple of states south and the service department pretty much replaced the experienced mechanics with younger technicians who don’t have experience with older equipment repair. When dealerships appreciate their customers, they stand by their service. Additionally, most dealerships in the past would have brought out a loaner tractor and the customer would have been taken care of. But when the dealership no longer values their customers, none of this happens. This farmer had no choice but to take their case to court.

I’m leaving things out of the narrative such as the estimate given was three times less than it ended up being and the amount of time taken to repair the tractor was far beyond the time initially given. During one of the endless depositions the comment was made to the dairyman, “you have so much equity in property, why don’t you just sell out and live comfortably the rest of your life?” You see the disconnect? The equipment dealer doesn’t get the connection that generations have with their farms. Each generation wants to leave it better when it’s passed off to the next generation and no one wants to be the generation to give up on so many generations’ work before them. When our vendors do understand that connection and/or don’t respect it, something needs to change for everyone in the next generation to eat.

My position seems harsh and is an indictment of a business relationship we have depended on for well over 125 years. It is also a relationship that we must have in the future. I am advocating that the future of our farms and the manufacturers we depend on require that we work together rather than the environment that currently exists. I am pleading with manufacturers to find a way to support their dealerships rather than milk the farm from what equity is left. From my perspective, it is a very shortsighted business model that dooms a percentage of the customers they have served for decades.

So, unfortunately, we must factor in yet another challenge to our businesses. What I remain convinced of is that the spirit we founded our country is alive and well, and will sustain our industry through this challenge and others that come our way.

IndianaAg@bluemarble.net