Product Diversity at Farm Shows Sorely Missed on Dealer Lots

This morning, I watched time-lapse video of the set-up at the Farm Progress Show in Boone, Iowa. It was a spectacular site for a couple of reasons.

First, as one of the biggest farm shows in the United States, watching it all come together is impressive. Next, seeing the diversity among manufacturers is a reminder of the breadth of the equipment in the industry.

Unfortunately, the breadth of equipment at this farm show, and every farm show, is a stark contrast to what many manufacturers will see when they return to their communities. Because of dealer consolidation and the continued push by majors for brand purity on independent dealer lots, farmers have fewer choices at their local farm equipment dealerships.

This is not just a problem for the shortline industry. It’s a problem for agriculture. Farmers deserve the choice, value and innovation that our members bring to farm equipment, and they deserve to find it on the same lots as the majors’ equipment.

We are far from the only ones to see the contrast as a problem. Officials from one state recently noted that “dealer access in the U.S., and brand purity, are threats to business longevity and market access.” 

The officials cited “major” companies telling dealers via contract terms what they can—and cannot—sell, saying that given the large number of ag manufacturers, dealer exclusivity and product placement on certain dealer lots is a disadvantage.

We applaud such state governments for taking notice of this major issue, and we agree it would be beneficial for elected officials to learn more about brand purity and negative impacts to non-major ag companies within their state and region. 

We will discuss this issue at the upcoming Marketing & Distribution Convention in San Diego, but the conversation need not be confined to the meeting.

You have the opportunity during this farm show season to raise awareness about the majors’ push for brand purity and build grassroots support for dealers who continue to provide a wide variety of choices for producers.

Whether you are in Iowa, North Dakota, Nebraska, Ontario, Ohio, or Georgia, engage farmers in a conversation about how important it is for them to see competing products on their local dealer’s lot. Tell farmers they deserve the opportunity to compare the best of what’s out there. This simple concept is at the heart of free enterprise.

We at the Association wish you a successful farm show season and look forward to hearing how farmers respond to your thoughts on an open, competitive marketplace.

Sincerely,

Vernon Schmidt,
Executive Vice President

Vernon@FarmEquip.org

P.S. A note about San Diego: Many members who have already registered intend to either arrive early or extend their stay beyond our meeting dates. 

This week, we were able to secure additional rooms on both sides of our meeting. Members are encouraged to take advantage of early registration discounts, which end on Sept. 11, to save over $100 on registration fees.