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5 Reasons why dealers are turning to FMS services

5 Reasons why dealers are turning to FMS services

The digital ag revolution is about more than just growers, now more than ever there are more and more large ag equipment dealers that are integrating Farm Management Software (FMS) services into their IS strategies.

For some, the adoption of 3rd party software resonates from a fear of being left behind by competitors, while for the majority of dealers the benefits of data integration means they can increase the value of and expand their acres-under-management services.

Here are five reasons why dealers are turning to FMS services and their impact on both their dealerships and customers.

1. Owning The Digital Relationship 

With the recent mega-mergers of across the input supply chain it is clear their sights a set squarely on “owning” the digital relationship with the grower. In fact in a recent AgFunder interview with the global head of Syngenta’s digital portfolio described it as “a race. It’s a race to bring digital capability. It’s a race to have the digital relationship with the grower.”

The implications for handing over the digital relationship to a competing FMS service provider are profound. Data is sticky and the likelihood of regaining the digital relationship is often unlikely. Progressive equipment dealers recognize this and are partnering with FMS providers such as AgDNA to ensure they have the most comprehensive offering for their growers.

2. Maximizing Precision Technology Payback

The amount of under utilized precision farming technology in the market today is nothing short of staggering. There are large operations with the latest machinery, technology and GPS guidance systems that openly admit they have never driven on the same AB line twice!

The under utilization of precision farming technology is largely due to complexity of setup, training of operators and lack of easy-to-use FMS that integrates with the hardware. By offering a fully integrated cloud-based FMS solution, dealers are able to work more closely with growers to ensure they are getting the most from the equipment.

The side benefit of utilizing technology is that growers are then upgrading their fleet and renewing their telematics subscriptions. Just like with GPS steering where “accuracy was addictive” resulting in row crop growers ultimately upgrading to RTK, a similar outcome is being observed with FMS. By using FMS to leverage the already available hardware and demonstrating its ROI, growers are upgrading the remainder of their fleet to maximize workflow efficiencies and ensure data is being collected and analyzed across the entire operation.

3. Making Hardware Smarter 

The Internet-of-Things (IoT) revolution is still in its infancy in the agriculture sector. There are a number of reasons for this including:

  • Connectivity - lack of wireless infrastructure on onboard equipment technology
  • Compatibility – lack of data inter-operability between manufacturers
  • Profitability – no clear ROI value proposition with telematics equipment 

The landscape is changing fast.  All major manufacturers offer telematics on their equipment to solve the connectivity piece. These same manufacturers have opened up their data through API agreements with third parties. Independent FMS providers such as AgDNA are then normalizing the data to ensure it is compatible regardless of manufacturer.

So with the challenges of connectivity and compatibility being solved, the stage is set to unlock the underlying value offered by innovative IoT techniques. AgDNA is one of the leading IoT solutions and our FMS platform is already yielding tremendous value by improving on farm workflow efficiencies, automating data analysis to help reduce input costs and automatically calculating the profitability of every acre with Pixel Profit.

But this is just the beginning. At AgDNA Labs our engineering team is working on cutting edge AI techniques that will help optimize equipment setup (eg benchmark calibration settings for certain operations), automatically identify opportunities to reduce inputs (eg variable rate applications by field conditions) and yield optimization recommendations (eg seed recommendations based on large scale geospatial benchmark results).  

This is all enabled by having the right equipment, connected to the cloud and complemented with the latest FMS such as AgDNA.

4. Demonstrating Long-Term Commitment 

Successful growers are good business people. Period. Farming is not based on luck, its about making careful calculated decisions, managing risk and investing in the future. This can be seen with grower’s ongoing commitment to things like maintaining soil health or running ongoing strip trials to determine the optimal inputs for given conditions.

Progressive and successful growers expect their suppliers to do the same. Innovate and invest in the future to make sure efficiency and effectiveness are at their peak and hopefully by doing so, translate that investment into a healthier bottom line for everyone’s businesses. A dealership can only thrive if their client base is also thriving.  

At AgDNA we see it all the time, a dealer that doesn’t “get it” when it comes to and therefore doesn’t offer it as a service. As a result growers are not familiar with the types of services and solutions available and therefore don’t go seeking it from their dealer. It’s a catch 22 and a the most likely way dealers will get disrupted by start-ups that show growers what’s possible and invest in technology with the goal of providing the grower with a road map for sustainability and health of their business. 

Where is your dealership at? Are you leading your growers toward the future or sitting back and waiting for someone to do it for you?

5. Remaining Relevant 

Does your dealership have a long-term vision on how you will remain relevant in the customer’s mind? Will the business of selling machinery look the same in 20 years from now?  Do the next generation of farm managers and decision makers have a different expectation of technology on the farm? 

There is no disputing that all aspects of our personal and working lives have been impacted by technology. The pace of change is only going to increase and once the shift in thinking by the consumer is made there is no going back. Just ask someone at Blockbuster, Kodak or a local taxi driver what they think about technology and the impact on their business. 

I’ll remind you of the quote from item 1 “It’s a race to have the digital relationship with the grower”. Large well-funded multi-national organizations are spending billions to work out how to disrupt critical elements of your business. If you think innovation, technology and data are a fad and will not be important to your customer’s decision making process in the coming years then I wish you luck!

However, if you think your growers want to:

  • Improve their profitability;
  • Maximize the ROI from technology built into their equipment;
  • Ensure the long-term sustainability of their farm for future generations 

Then contact the team at AgDNA to find out how we can help. And for those dealers that are already offering FMS powered by AgDNA, thank you and we look forward to building the future of farm management together with you.

Contact AgDNA 

If you’re a dealer and want to know more, contact your local AgDNA representative:

Southern US
Russell Cauthen
(601) 559 5474

Northern US
Mark Sullivan
(309) 221 7611

If you’re a grower and want to learn more about how AgDNA can help reduce farm costs and increase yield, visit our Dealer Network website to find your local authorized AgDNA dealer.