Demonstration projects for promotion and development of new equipment

A close friend farms over 10,000 acres of corn in the mid-west. The property is spread out over 3 counties. His operation is a “partnership farm” with John Deere. They use the larger farm operations as demonstration projects for promotion and development of new equipment.

He recently received a phone call from his John Deere representative, and they want the farm to go to electric tractors and combines in 2023. He currently has 5 diesel combines that cost $900,000 each that are traded in every 3 years. Also, over 10 really BIG tractors.

John Deere wants him to go all electric soon.

He said: “Ok, I have some questions. How do I charge these combines when they are 3 counties away from the shop in the middle of a cornfield, in the middle of nowhere?” “How do I run them 24 hours a day for 10 or 12 days straight when the harvest is ready, and the weather is coming in?” “How do I get a 50,000+ lb. combine that takes up the width of an entire road back to the shop 20 miles away when the battery goes dead?”

 

Response Questions: 

  1. Have you heard of a “partnership farm” before? What benefit(s) does this arrangement provide to the farmer? What benefit(s) does this arrangement provide to John Deere?
  1. What things has John Deere failed to consider in this scenario?
  1. Do you think the John Deere representative was involved in the “push” for this farm to go electric? Why or why not?
  1. What factors are influencing John Deere to modify their sales strategies? What would happen if John Deere did not modify their sales strategies?