In his weekly blog, Nathan Faleide, self-proclaimed cynical ag tech mentalist, and 2024 Precision Farming Dealer Summit speaker, explains why precision ag is uniquely positioned to thrive during these tough economic times in agriculture.

“This ‘doom and gloom’ moment is the best time for ag tech to thrive,” Faleide says. “When things are normal, people stay comfortable. When things break, they start listening. The businesses that can’t change are the ones panicking. The ones already experimenting, collaborating or thinking outside the norm will come out stronger.”

As OEMs struggle to move iron, and farmers hold onto their equipment longer, dealers are going to lean heavier on service and parts, Faleide says. This is where he sees a big opportunity to focus on upgrading monitors, guidance systems, sensors and software and even adding data management services.

“There’s less capital needed to do that than to move big iron, plus most of the infrastructure is already there,” Faleide says. “Now is the time for equipment companies to double down on digital. Focus on what’s already built to improve ROI, not just sell hardware. When the shiny new stuff slows down, software and service become the steady hand that keeps people going.”

Change is never easy, but Faleide says it’s long overdue in the ag equipment industry.  

Let’s take a quick detour here because this reminds me of my past life as a sports broadcaster. I built up a strong following while working for a local TV station in central Illinois for several years. I was comfortable with the market, knew all the big players and had the daily/weekly/yearly routine for covering the local sports scene down to a science.

When I was offered a job to lead the sports department for a station in Mississippi, my instinct was to turn it down and stick with what I knew. But one of my old co-workers echoed the sentiments of Faleide and gave me the nudge I needed.

“Ah, outside the comfort zone, that’s where the real magic happens,” he told me.

I leaped outside of my comfort zone and took the job. And I’m glad I did. It was a very rewarding — and action-packed — chapter of my life.

OK, back to the main point. Some dealers might be facing a similar crossroads right now, as Faleide points out (and illustrates in the meme below) — stay on the same path or take a hard turn into the unknown, which might be less scary than it sounds. 

“Everywhere you look, there’s a sense that ag is at a turning point,” he says. “Dealers are looking for direction, farmers are tightening belts and everyone’s scanning the horizon for the next safe move. But the truth is, there isn’t one safe move.

“The path forward is smaller steps, smarter tools and more collaboration. The industry has to start filling its own gaps, bailing itself out and keeping things simple enough that progress actually sticks. Adapt early, work together and stay curious. Because this isn’t all doom and gloom. It’s the start of something new and interesting. Which path will you take?”