Farms.com Precision Ag Digital Digest recently had the opportunity to speak with Damon Audia, the Senior Vice President and Chief Financial Officer of AGCO, to discuss the company’s focus and retrofitting strategy, emphasizing not just new equipment but on retrofitting existing equipment. Audia shared insights on why this approach is particularly relevant in 2024, noting that, according to the USDA, farmers’ incomes are expected to decline from the highs of the past few years. He knows that while farmers are interested in technology, it is not realistic to assume that they can continuously invest in new technology-enabled equipment. But he knows there is a consistent need among farmers to upgrade their equipment to enhance productivity and reduce costs and reduce waste. A notable aspect of AGCO’s retrofitting strategy is its inclusivity, with solutions designed to fit all makes and models of equipment. AGCO’s retrofit solutions are designed to be compatible with all makes and models, further illustrating the company’s inclusive approach to helping farmers upgrade their equipment. He explained that AGCO would like to differentiate itself from other major OEMs through its unique retrofit channel, including such brands as Precision Planting, allowing farmers to invest in smaller, more affordable modules to improve yield or reduce input costs. Audia emphasized AGCO’s commitment to being a farmer-focused company, ensuring that farmers can see value in their investments with a relatively quick payback period of one to two years. The retrofit business has been growing at a doubledigit rate for AGCO, underlining its importance to the company’s overall business strategy. Audia also highlighted the recent joint venture (JV) with Trimble, a move that positions AGCO as a leader in mixed fleet precision agriculture. Like Precision Planting, Trimble’s guidance systems are brand and vintage agnostic, which complements AGCO’s strategy of providing versatile, high-tech solutions to the agricultural sector. This JV with Trimble is a significant part of AGCO’s technology stack, especially as the company looks toward autonomy and enhanced connectivity in farming operations by 2030. AGCO’s focus extends beyond retrofitting to encompass the entire crop cycle, with ongoing investments in automation and other technologies that ease the workload for farmers. 14 WATCH THE VIDEO PHOTO: Sergio Delle Vedove – stock.adobe.com AGCO’S FARM EQUIPMENT RETROFITTING STRATEGY SETS IT APART Enhancing farmer productivity without heavy investment DENISE FAGUY FARMS.COM
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