Large Dealer Groups Increasing

According to Farm Equipment magazine, the push toward industry consolidation continues, as the list of “big farm equipment dealers”, which they define as groups with five or more store locations, went from 151 in early 2009 to 163.

“Our best estimates are that these large dealer groups account for well over 20% of all North American farm equipment dollar sales,” said Editor Dave Kanicki. “By brand, we estimate that these dealer networks account for nearly 50% of John Deere’s annual ag equipment sales in the U.S. and Canada.”

This compares with AGCO (primarily the Challenger brand) and Case IH, where their larger dealer groups make up around 30% of annual sales. The larger New Holland and Kubota dealer groups have yet to demonstrate the same level of impact, accounting for plus or minus 10% of annual sales.