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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (74962)

1/27/2024 9:33:57 PM

From: E_K_S

1 Recommendation

Recommended By
Grommit

Read Replies (1) | Respond to of 78508

AGCO Continues Technology Transformation to Become an Industry Leader in Smart Farming Solutions

DE is the leader but AGCO and CAT not far behind. CNHI also has many of these features but not nearly as integrated using satellite technology.

TITN is a distributor of AG tires for all the major players as well as a distributor for new & used equipment.

I own all of them except DE and may have had the change to add on their last earnings disappointment. It was not clear if it was DE specific (prices are quite high for their equipment) or just an industry seasonal slowdown.

Typically farmers will buy new equipment after better than expected harvest and/or high commodity prices. Very difficult to time but have seen this in TITN sales especially w/ used equipment sales and/or trade ins.

Long term all have done well and DE probably the leader. AGCO & CNHI big in Europe.

I continue to own/add AGCO (on any sell offs) as they have the most to gain from their recent acquisitions mentioned in the article. They are basically catching up with DE.

FWIW, I watch several of the farming Youtube channels all but one use the DE equipment. It is amazing how far they have come with the technology. I am sure an integrated AI package will be deployed but even now as you mentioned there is already very smart technology being used in both fertilizer applications and weed management.
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A new AG name I have been building a position in is AGRO:

Adecoagro S.A. operates as an agricultural company in South America, with operations in Argentina, Brazil and Uruguay. The Company is engaged in farming crops and other agricultural products, cattle and dairy operations, sugar, ethanol and energy production and land transformation. Adecoagro S.A. is based in Luxembourg.

Adecoagro S.A. (AGRO) operates farms in four South American countries: Argentina, Brazil, Paraguay, and Uruguay. Here's a breakdown of their agricultural footprint:

CountryHectares (approximate)Acres (approximate)Main CropsLand Ownership

Argentina	240,000	593,000	Soybeans, corn, wheat	Mixed (owned and leased)
Brazil	400,000	988,000	Soybeans, sugarcane, corn	Mixed (owned and leased)
Paraguay	120,000	296,000	Soybeans, corn, wheat	Mixed (owned and leased)
Uruguay	100,000	247,000	Soybeans, rice, wheat	Mixed (owned and leased)

Total: Approximately 860,000 hectares (2,124,000 acres)

It's important to note that the exact land area and ownership details can vary slightly depending on the source and date. However, this information provides a good overview of Adecoagro's farming operations in South America.

In addition to the crops mentioned above, Adecoagro also produces other agricultural products like peanuts, sunflowers, and dairy products. They often employ a mixed ownership model, where they own some land and lease additional land to optimize their operations.

From AI BARD:

Adecoagro isn't known for publicly disclosing specific brands of their tractors and farm implements. They likely source equipment from a variety of manufacturers based on factors like performance, reliability, cost, and compatibility with their existing systems. However, here are some insights that might be helpful:

Possible Brands:

Major Agricultural Machinery Companies: John Deere, New Holland Agriculture (including CNH Industrial brands like Case IH and New Holland), AGCO (including Massey Ferguson and Valtra), Kubota, Caterpillar. These companies offer a wide range of tractors and implements suitable for large-scale farming operations in South America.
Regional Brands: Some South American brands like Jacto (sprayers), Stara (planters), Metalfor (seeder and tillage equipment), and Apache (grain carts) are popular in the region and could be used by AGRO.

To: Grommit who wrote (74962)	1/29/2024 12:23:21 PM
From: Lance Bredvold	3 Recommendations Recommended By E_K_S Grommit Spekulatius Read Replies (1) \| Respond to of 78508

CNHI; A few years ago they purchased one of my favorite companies for Raven's precision farming equipment division. One of three divisions and I believe they soon spun off the plastics division in Sioux Falls and Sulphur Springs TX. I presume they also discarded the balloon division which were the original focus of Raven's from 1956. Sprayer arm control was a big part of their precision division and had been developed due to experience in plastic manufacturing for balloons early on. The farming equipment business was quite far along relative to Deere in about 2015 (just guessing) and Raven made a decision to sell some add-on equipment to Deere--that would be self steering and sprayer controls to existing equipment primarily already in the field I believe. Never heard much more about that deal but know it was a big decision whether to let Deere in on their technology which sharing they'd avoided for many years. Raven bought a small inventor (DOT) of field equipment in Saskatuwan and helped finance a power unit which could be used on several different appliances in the field like self controlled product vehicles which would, without operator, drive out to a combine or sweet potato/legume harvester/other field equipment and haul the load back to a central location on the farm. They also had been selling controls for tractors utilizing GPS capability both with an operator on board or without one for several years. I don't think JD had the capability and that's why they bought from Raven. At the time Deere appeared to me to be far behind. However, the fact that CNHI needed to spend so much to get Raven's capability leads me to think they were even further behind. Still, a small company like Raven did not have significant capital to keep up and JD has apparently lapped them and CNHI. On edit; holy smokes, Spekulatius mentions Raven while I'm typing--how in the world does he have so much knowledge- I thought only I would know of Raven.