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> If Deere is so bad buy from competitors, of which there are many. I somewhat agree with your earlier comment, but this bit is ignoring the systemic issues in
by phil21 2y ago
> If Deere is so bad buy from competitors, of which there are many.
I somewhat agree with your earlier comment, but this bit is ignoring the systemic issues involved.
Deere is a leader in much of the efficiency technology that allows large-scale farming operations to reach the economy of scale needed to farm the huge multi-thousand (tens of thousands of acres in many cases) grain operations that are slowly but surely taking over food production in the US.
This trend, unabated, is a weird form of monopoly power for lack of a better word. If one manufacturer is more or less the sole-source for the largest corporate farms, and those farming operations are putting smaller ones out of business due to cost pressure - eventually - and likely sooner than later it becomes a too big to fail situation and a systemic national security risk.
This is starting to get into the realm of arms manufacturing. If these trends continue for another decade or three, and then Deere has say a massive IT failure, planting and harvesting operations literally grind to a halt for the top-end equipment entirely reliant on the automation and data harvesting these machines require to operate. People will be at risk for starvation in the event of an extended outage. Farming as a Service has a hidden cost to it many are not seeing in these comments.
I don't agree with disbanding Deere and nationalizing it - however this really needs to be looked at much more than a simple competition issue. It's rapidly becoming a winner-takes-all market, which is subsequently running the smaller operations out of business and putting the US food supply at a systemic risk if nothing is done.
Of course a competitor could somehow battle through the patent forest and capital requirements, but I wouldn't bet our lives on that.
- SideQuark 2y ago> This trend, unabated, is a weird form of monopoly power for lack of a better word. Deere controls around 40% of the North American agricultural machinery market [1]. This is so far from anything near any kind of monopoly it's ludicrous to call it so. No court has ever ruled anything anywhere near this low as any kind of monopoly. Everything you wrote predicated on this FUD is invalid. > This is starting to get into the realm of arms manufacturing. And this takes the hyperbole into crazy land. > It's rapidly becoming a winner-takes-all market Nope. The competition for making such machines is rapidly increasing as it's becoming easier, not harder to make ag equipment. Pressure from a huge host of countries whose economies are becoming first world is adding many other worthy candidates. CNH, Agco, Kubota, Case, New Holland, and many others are already making inroads. EU is the biggest ag market, and Deere has far less market share there than here, where the competitors have already made major inroads, and they're now moving imports and even production into the US. > It's rapidly becoming a winner-takes-all market Do you look at market data from investment firms or even at SEC filings from the major players? These statements are not based in any fact. [1] https://www.nasdaq.com/articles/plowing-ahead:-john-deeres-crop-of-success-in-turbulent-markets https://www.nasdaq.com/articles/plowing-ahead:-john-deeres-c...