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4. The BTO (Big Time Operator). Deere has been known to give them very compelling deals that the other manufacturers cannot match. The smaller farmers are more
by randomdata 5y ago
4. The BTO (Big Time Operator). Deere has been known to give them very compelling deals that the other manufacturers cannot match. The smaller farmers are more likely to buy used equipment, so this also ensures that when the largest farmers buy Deere, green equipment is what is found on the used lot.
- etempleton 5y agoThis is a good point. I also wonder if the service agreements start to make a lot more sense for the BTOs due to scale and so they are less likely to be concerned about the right to repair.
- randomdata 5y agoA lot, I dare say even most, of the new equipment is leased to the first generation customers. They will run them for a year, two tops, and then it will go out on the used market for the 'regular' farmers to buy. You won't find much concern about ownership agreements when they are renting the equipment.
- boringg 5y agoThe biggest operators get it on a deal but the small to mid tail of the curve needs to pay full price but they aspire for the better product - which is where the margins are. Almost a veblen good but not quite by traditional definitions. FWIW the lock-in for farming in terms of equipment and seed product is so bananas to me. Really feels like the large corpos have got everyone squeezed.