Challenges and strategies in the precision farming sector revealed at summit

During a panel discussion at the 2025 Precision Farming Dealer Summit, Spud Armstrong, a precision specialist with Ag Technologies Inc. based in Rochester, Indiana, addressed some of the significant challenges currently facing the precision farming sector. Armstrong candidly remarked on the difficulty in recruiting talent, stating, “It’s hard to find good people. We don’t go out and hire someone just because they have a heartbeat. We try to find people that know what they’re doing.” He noted that while there have been opportunities to recruit from other dealerships, his organization has been selective in their choices.

The summit, which attracts dealers and industry experts, included findings from the 12th annual Precision Farming Dealer Benchmark Study. This study highlighted several key challenges that precision dealers anticipate in the coming year.

One significant concern identified was the deteriorating profit and loss statements for farmers in 2025, leading to diminished spending unless there is a marked improvement in market conditions or yields. A proposed solution from various dealers included an emphasis on ROI-based selling, asserting that farmers who adopt technology tend to be more profitable and can produce at lower costs.

Another critical challenge revolves around increased competition, particularly from John Deere, which is advancing its hardware sales programs and product diversity. This competition compels precision dealers to enhance their customer experiences and explore alternative product lines to remain competitive.

Armstrong and his peers also raised concerns about the effectiveness of billing for precision farming services. Many team members find themselves giving away free support, something Armstrong acknowledges as a leadership flaw. He plans to pivot towards a more positive approach that includes teaching his team beneficial soft skills for discussing pricing with clients.

Additionally, dealers are grappling with the fallout of the ag economy downturn. The loss of capital among farmers significantly impacts sales, prompting a focus on products that demonstrate clear ROI. In light of seasonal fluctuations, there is also a call for innovative revenue generation strategies, such as promoting offseason services.

Armstrong highlighted the challenge of scaling their operations, which includes adding new locations and hiring qualified precision ag support staff. To address this, he has turned to their HR department for active recruitment, utilizing existing networks and connections with educational institutions.

Recognising the volatility of grain markets and environmental factors such as moisture levels, many dealers expressed a sense of helplessness in addressing such challenges. Their focus remains largely on developing strategies to enhance volume sales and profitability by optimising the use of CRM systems.

The prevalence of customer loyalty issues, particularly with clients purchasing products online from competitors, is prompting dealers to reconsider their service strategies. Suggestions included offering discounted service rates for products purchased in-house to incentivise loyalty.

Overall, the participants at the Precision Farming Dealer Summit are actively identifying challenges and proposing strategic solutions to navigate the intricacies of the precision farming industry in the upcoming year.

Source: Noah Wire Services