The Association of Equipment Manufacturers has released their 2010 outlook for agricultural machinery. It looks like an expectation of continued “continued weakness in U.S. and Canadian tractor sales.” This is comes from a survey they conduct of members. So although this year’s outlook is somewhat negative, future years look much better.
For all sizes of two-wheel tractors, however, the declines are expected to be less steep than 2009 losses. Double-digit decreases are expected for four-wheel-drive tractors, following relatively flat business in 2009. Combine sales are predicted to drop in the double digits for 2010 after 2009 sales growth. Sales of tractors and combines are then predicted to start rebounding through 2011 and 2012.
For other types of farm-related equipment covered in the AEM survey, overall 2010 demand for most products in the U.S. and Canada is expected to improve after 2009 business declines. All categories are predicted to be in the plus column for 2011 and 2012.
One of the exhibits I visited at AG CONNECT Expo is our primary Precision Pays.com sponsor, Ag Leader Technology. Mike Olson, Sales and Support Manager, was on the floor interacting with attendees when I stopped by.
The Ag Leader booth was one of the ones displaying the “New Product” banner. I asked Mike what was new. He says there have been several new products released recently by the company including their new INTEGRA display. The 12.1 inch screen combines the operation control options Ag Leader is known for, with a built-in full-featured steering and guidance system including an on-screen lightbar.
Mike says most of the growers he spoke with know they need to implement precision technology but are asking questions about how they can use it in their operation.
You can watch or listen to my interview with Mike below:
I had a chance to sit down with Alida Bellandi, the Director of International Marketing for the Brazilian Association of Machinery and Equipment Manufacturers (ABIMAQ) during the AG CONNECT Expo. Bellandi’s organization was here to participate in the AgriEvolution Forum, a forum that is promoting a dialogue between the associations of manufacturing around the world. The first forum was in Rome two years ago, and the second one was hosted here by the Association of Equipment Manufactures (AEM) with the goal to discuss the future of the industry.
Bellandi told me that her organization represents manufacturers that produce equipment for small to medium sized farmers. This includes equipment used for soil preparation to silos to tractors and harvesters. Brazil has been manufacturing equipment for 30 years and currently exports to more than 60 countries.
Since AG CONNECT Expo was an international show, I asked Bellandi about Brazil’s efforts in helping other countries with their efforts. She told me that Brazil has developed a direct planting technology that is something other Latin American countries are very interested as are many countries in Africa. She also noted that while sustainability is a very important aspect for the ag industry in Brazil, it is not yet important in developing countries.
“What you have to understand is the stage they are in right now. They have to feed their people and they have practically nothing in many countries. So environmental issues are not very important for them. We’re trying to show them they could start thinking about it a little bit differently. But in Latin America, we’re beginning to influence them,” Bellandi.
To get people thinking about environmental issues, ABIMAQ has produced a free video called “The Earth hanging by a drop,” that demonstrates how ecosystems are affected by global warming. To receive a free copy of this video and to learn more about the organization, visit ABIMAQ’s website.
The inaugural AG CONNECT Expo is “in the books.” It was a good one too. I believe the show was very professionally done and everything went smooth. Attendees and exhibitors have echoed those comments when I’ve spoken with them.
To wrap things up I spoke to Charlie O’Brien, VP Ag Services for the Association of Equipment Manufacturers. He says that they’re extremely pleased with the show. Attendance neared a total of 8,000. He says that the show committees have all met and the common theme among them was “quality, quality, quality.” Meaning that they have all been impressed with the quality of the booths, the sessions and the people on hand to answer questions. Looking forward they would like to broaden the scope of the show with more exhibitors. They’ve already got a large portion of next year’s floor space sold. He also heard from exhibitors that they were grateful for the integration of educational sessions into the show.
Next year’s show will be in Atlanta, GA January 7-10 so make your plans now. You can watch my interview with Charlie or listen to and download it below:
AG CONNECT Expo released some statistics about the show this morning during a press briefing. We heard from Show Director Sara Mooney and AEM VP of Ag Services, Charlie O’Brien.
Here’s some quick stats for you. There are currently 7,000 registered. The final numbers will change since we’re not at the end of the show yet by the way. Of those 7,000 there are 2,000 producers with an average or 2,900 acres and 80 percent say they are decision makers. There are 1,800 agribusiness and 800 dealers. The balance consists of all the people working out on the show floor. There are 312 exhibitors using 167,800 square feet of space. About 20 percent of attendees are from outside the U.S. and there are 67 countries represented and 49 out of the 50 states in the U.S. (Hawaii) didn’t have anyone here.
The VP of Statistics, Technical and Safety Services for the Association of Equipment Manufacturers (AEM) is Darrin Drollinger. He addressed the Agricultural Equipment Technology Conference (AETC) which is conducted by the American Society of Agriculture and Biological Engineers (ASABE) being held in conjunction with AG CONNECT Expo. In his comments he talks about AEM and their new show.
I think we had a great crowd for the opening ceremony of the first ever AG CONNECT Expo. The Chapin Theater here at the Convention Center is a beautiful facility.
Our emcee for the program was Doug DeVries, John Deere. He welcomed everyone and introduced two of his competitors, Martin Richenhagen, AGCO and Jim Walker, Case IH who also made welcoming remarks. I recorded their remarks which you can listen to and download below:
Attending today’s Agrievolution program is Martin Richenhagen, President/CEO, AGCO. I had the opportunity to talk with him about this new ag show – AG CONNECT Expo. AGCO is supporting the show in a big way.
Martin says says that although the U.S. is one of the biggest countries in farming, the biggest farm shows are in Europe and they wanted to change that by having the industry association (AEM) put on the show so that the money made goes back into the industry. He says this gives companies a real vested interest in the show. In fact, he says “we feel pretty much like shareholders.” He really likes what the AEM staff has done with the show.
AGCO has invited about 1,500 dealers and customers to the show and they’ll have some new equipment on display. The idea has been very well received according to initial feedback.
AGCO is also sponsoring the first ever AGCO/AEM/AgChat tweetup following tomorrow’s opening session/reception at approximately 6pm in the news media center which is located in room W221 of the convention center.
AG CONNECT Expo now has an iPhone app available. Working with Core-Apps, LLC, and their Follow Me application, you can navigate the show floor like a pro. The app has interactive maps, lets you search the exhibitor directory or create your own schedule by choosing the sessions you want to attend and speakers you want to hear.
It’s on my phone even though it does cost $1.99. As we get closer to the show I’m sure there will be more data available. It’s got a download function that lets you download exhibitor handouts for example.
I was surprised to see ads for AG CONNECT Expo showing up on FoxNews.com this morning. But we’re getting close to the first ever AEM ag show in Orlando, FL. Got your plans made? I made my plane reservation this morning. Register Now
Advance Attendee Registration deadline has been extended!
Register to attend AG CONNECT Expo 2010 by Friday, January 8, 2010 and save over 30% on the onsite fee.
It seems like more and more meetings are being held in conjunction with the first ever AG CONNECT Expo. This invitation only event is called Agrievolution. The first one took place in Rome in 2008. Some portions of the program may become open to the public.
The Second World Summit on Agricultural Machinery will be hosted by the Association of Equipment Manufacturers on Monday & Tuesday, January 11 & 12, 2010 at the Waldorf Astoria, Orlando, Florida in conjunction with AG CONNECT Expo 2010. This second Summit will again identify challenges affecting the agriculture industry across the globe, and will provide a global platform from which to address issues impacting the industry. In addition to identifying crucial global agricultural and equipment manufacturing issues, the intent would be for the group to issue position statements and serve to coordinate collaborative efforts among the world regions for the betterment and advancement of the industry.
It’s Holiday Greeting time and the wishes are rolling in. Here’s the Association of Equipment Manufacturers saying Happy Holidays. I’m looking forward to spending a lot of time with them in January at their AG CONNECT Expo of which we’re a supporting organization.
Do you have a holiday greeting card you’d like to share with AgWired fans? If so, please send them to me and I’ll do my best to feature them here over the next few weeks. Please don’t hesitate to send if it mentions Christmas too. I and everyone I know are okay with that. After all, it’s the reason for the season.
January in Orlando is looking pretty good right now to most of us here in the frigid Midwest.
So if you have not made plans to attend AG Connect Expo 2010 in Orlando on January 13-15, take this snow day to get on line and make your reservations.
Besides offering the opportunity to get away to a warmer climate, Expo 2010 will provide a world-class event for the global agriculture industry—bringing together the latest in equipment, technology and ideas. The show was developed by the Association of Equipment Manufacturers (AEM) with the support of a variety of industry organizations and companies, including Agwired and parent company ZimmComm New Media.
Find out more about what AG Connect offers from previous posts here on Agwired – including this interview with AEM’s Charlie O’Brien, and one with expo director Sara Mooney about the show’s awards program.
Sara Mooney is the Director of the AG CONNECT Expo and attended the National Association of Farm Broadcasting Trade Talk along with my man Rich Jefferson. I had been wanting to talk to them about their Advocating For Agriculture awards program where they will recognize three individuals who support “in a compelling way the work of farmers and ranchers to provide abundant and affordable food and fiber.” There are three categories: Ag Woman of the Year, Community Leadership and Ag Innovation.
The grand prize winner of each of the three award categories will receive a free trip to AG CONNECT Expo 2010, including roundtrip airfare for two to Orlando, Florida, from anywhere in the continental U.S. Nominations are due by the end of this week, November 28. Then online voting will start on December 4. All winners will be announced on December 18 and I’m sure we’ll have them posted here.
“AG CONNECT Expo’s awards are a way for our trade show to put a spotlight on the significant contributions that those in production agriculture make to our quality of life,” said Sara Mooney, the Director of AG CONNECT Expo. “We want the awards to draw attention to those whose work and accomplishments this year exemplify ‘advocating for agriculture.’”
You can listen to my interview with Sara below and read more about the awards by clicking on the “more” link. (more…)
It seems like the list of companies and organizations that are partnering and participating in the new AG CONNECT Expo continues to grow. This time AEM has announced an alliance with Farm Journal Media to promote the new show
Under this agreement, Farm Journal Media will represent AEM in exhibit booth sales outside of AEM and FEMA membership, publish the Official AG CONNECT Show Directory, hold seminars and co-locate events at AG CONNECT, and promote attendance to AG CONNECT with a full multimedia promotion schedule using Farm Journal Media’s definitive suite of media products.
The inaugural AG CONNECT Expo 2010 is slated for January 13-15, 2010 (Preview Day January 12 by special admission) at the Orange County Convention Center in Orlando, Florida. AEM initiated AG CONNECT Expo as a North American-based global showcase of the latest innovations, products, services and technology in all agricultural sectors, with extensive networking opportunities and access to leading worldwide industry experts.
As Official Sponsor of AG CONNECT Expo 2010, Farm Journal Media is promoting the trade show to the agricultural community with an extensive multimedia program. Farm Journal Media will also contribute its expertise in major education events and networking programs.
This includes Farm Journal Media’s “Leave a Legacy” project, forming the basis for a show Plan for Success Workshop to be held in conjunction with AG CONNECT Expo 2010. “Leave a Legacy” is a nationally recognized effort to provide family agriculture operations with expert succession planning – an essential process for continued production of abundant food, fuel and fiber at the necessary levels of high efficiency.
The organizers of two international agricultural shows have announced a formal alliance to coordinate show dates that will allow agriculture producers to attend a major international agriculture trade show each year.
The alliance is between DLG (German Agricultural Society), the organizer of the world’s largest agriculture machinery show Agritechnica, and the Association of Equipment Manufacturers (AEM), organizer of the new agricultural trade show AG CONNECT Expo, scheduled for January 13-15, 2010 at the Orange County Convention Center in Orlando, Florida. Agritechnica is held on odd numbered years with the next show scheduled for November 10-14, 2009 at the Fairgrounds in Hanover, Germany.
Both Agritechnica and AG CONNECT Expo 2010 are organized with a focus on providing a world-class event with top value and the highest quality experience for registrants. The philosophy shared by the shows is to provide customers with the full agriculture trade show experience. For 120 years the DLG exhibition has highlighted technological advances favored by agriculture producers. AG CONNECT Expo 2010 has a parallel concept that will provide a global gathering place in the United States for agriculture producers, manufacturers and agribusinesses.
Support is growing for the new global agriculture trade show set to debut January 2010 in Orlando. AG CONNECT Expo 2010 made several announcements this week about support for the show.
For starters, the American Society of Agricultural and Biological Engineers (ASABE) will co-locate its annual Agricultural Equipment Technology Conference (AETC) with the new international agriculture exhibition. It will also conduct its annual AE50 “innovation” awards program at AG CONNECT and spotlight the AE50 winning products at the show.
The North American Equipment Dealers Association (NAEDA) joins a growing list of industry groups that have endorsed and will participate in the show. NAEDA will also serve as a major organizer of the AG CONNECT Expo “Preview Day” that will allow dealers and their customers to interact with key decision makers from manufacturers in attendance. That will be held on January 12, the day before the show officially gets underway. In addition, the Western Canadian Wheat Growers Association announced their support of the show this week.
Last, but definitely not least, AG CONNECT Expo 2010 has been selected to be part of the U.S. Department of Commerce’s International Buyer Program, which will help to recruit international attendees and encourage connections with exhibitors who sell to the global marketplace. This is a huge deal for the international show, according Charlie O’Brien, vice president of agricultural services with the Association of Equipment Manufacturers (AEM) which owns and operates AG CONNECT Expo. “With the involvement of IBP, attendees and exhibitors at AG CONNECT Expo will benefit from potential trade leads and matchmaking opportunities, international insights into key ag issues, as well as the opportunity to learn different business practices in the context of a global agriculture trade show,” said O’Brien.
NAFB Trade Talk is a great way to get new information out to farm broadcasters and that is what the Association of Equipment Manufacturers did this year at the event, talking about the new AG CONNECT 2010 expo.
Charlie O’Brien, vice president of agricultural services for AEM, had the chance to talk about the progress being made on the new show, which will debut in Orlando January 13-15. Charlie says they are working with a number of groups now who want to be involved in the show and hold their annual meetings as part of the event. He is especially excited about the global aspect of the expo. “We have more and more products being exported around the world,” he says. “So it’s a sharing of information back and forth from around the world.”
Listen to my interview with Charlie here:
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The Agricultural Industry Electronics Foundation (AEF) has been announced as a result of cooperation between the German Engineering Federation (VDMA) and the Association of Equipment Manufacturers (AEM).
The foundation is a manufacturer-led effort to advance global adoption of ISOBUS and electronics standards, which provide a means for greater electronic compatibility between equipment from different manufacturers. The initial focus is data communications between tractors and implements.
An industry wide, global approach for integration of complex electronic systems and software will improve machine functionality and efficiencies, for the benefit of agricultural equipment customers. Projects to achieve that integration can be accomplished faster and more efficiently because of AEM and VDMA funding and staffing of AEF.
Although there is no website for the new AEF you can find North American information on the AEM website.
It looks like this whole credit crunch issue is affecting agriculture according to some testimony on Capitol Hill today by the Association of Equipment Manufacturers. You can watch a video of it here.
The Chair of AEM’s Small Enterprise Committee, Richard A. Brown, testified on Tuesday, October 28, 2008 before the House Committee on Small Business at 10 a.m. EST. Brown is the President and COO of Krause Corporation, based in Hutchinson, Kansas. The hearing is on “Creating Opportunities for Small Businesses in an Economic Recovery.”
In his prepared statement, Brown expressed his concerns to the committee for small businesses in the U.S. obtaining credit during the present economic crisis. As an example, Brown cited one business person from rural South Carolina who “had an operating line of credit with (a bank) that was secured by a stock portfolio, but with the unraveling of the market their line was frozen … Now (he) is spending most of his time trying to resolve the issue when he should be working to secure orders in this down market.”
Brown pointed out that the crisis is also now hitting agriculture. “The economic foundation for countless small businesses on thousands of Main Streets throughout the country is agriculture,” he said. “The tightening of the credit markets is coinciding with a rapid rise in the cost of agricultural inputs, such as fertilizer, seed, chemicals and fuel.”
Here’s another excerpt from his testimony:
“We are now seeing farmers delay the purchase of these inputs from their “normal” pre-season purchasing patterns as they are having trouble accessing credit and are hesitant to pay such steep prices. The ripple effects of tightening credit markets at a time of increasing capital requirements for agriculture will lead to economic hardships for rural America. I can also say that I personally perceive a sense of anger among rural Americans about this situation. Generally speaking, they did not buy homes they could not afford or run up huge credit card debt, but now are forced to deal with the consequences of other people’s excesses and as a consequence are losing faith in the system.”
Commodity Classic took place in Anaheim, CA. You'll find all of Chuck, Cindy and Joanna's photos here.
Happy Ag Week
It's time to thank our farmers and ranchers for all their hard work to feed us.
In this week's program I interview Linda Tank, CHS, Inc., who is Chair of the Agriculture Council of America, the group coordinating National Ag Day. Learn more about their activities, especially this week in Washington, DC.