From farmers’ perspective, the two companies say their combined technology offering is expected to offer “seamless integration and connectivity across geographies, equipment brands and the crop life cycle.”

The structure of the deal announced Thursday will see Trimble receive $2 billion cash and a 15 per cent share in the new joint venture, for total pre-tax value of about $3 billion accrued to that company (all figures US$).

Agco, whose machinery brands include Massey Ferguson, Fendt, Challenger and Valtra, contributes its JCA Technologies business to the new j.v. and will hold the 85 per cent majority stake in the venture.

The deal is expected to close in the first half of 2024, pending the usual approvals and other closing conditions.

The new j.v. won’t include Trimble’s Global Navigation Satellite System (GNSS) or guidance tech, but Trimble will provide those to the new venture under a new long-term supply agreement and technology transfer and license agreement — along with an agreement making the new venture a “channel partner” of Trimble’s positioning services in the ag market.

Winnipeg-based JCA, which Agco bought last year, makes systems and software including the Vireo precision ag system, the Eagle autonomous equipment system and the Falcon and Oriole controller systems.

JCA also developed the control system supporting the Canadian-made DOT autonomous ag equipment platform, now owned by Agco’s OEM rival CNH Industrial.

Trimble and Agco said the new venture is meant to “better serve farmers with factory-fit and aftermarket applications in the mixed fleet precision agriculture market” and to be “a global leader in mixed-fleet smart farming and autonomy solutions.”

The deal “accelerates Agco’s growth ambitions around autonomy, precision spraying, connected farming, data management and sustainability,” Agco CEO Eric Hansotia said in a release.

It also “significantly enhances Agco’s technology stack with disruptive technologies that cover every aspect of the crop cycle, which ultimately helps us better serve farmers no matter what brand they use,” he said.

“We believe a joint venture with Agco, complemented by the successful mixed fleet approach that they have developed with their Precision Planting business model, can help us better serve farmers and OEMs (original equipment manufacturers) together,” Trimble CEO Rob Painter said.

From Trimble’s perspective, the deal streamlines its asset portfolio and allows it to increase its focus on “priority growth areas” — while reducing its direct exposure to the “hardware-centric” ag market but still maintaining its “ongoing participation in a leading precision ag asset.”

The “commercial synergies” the new joint venture will get from direct access to Agco’s OEM, aftermarket, other OEM and retrofit channels — along with “modest” run-rate cost synergies — are expected to roughly double the new venture’s earnings before interest, taxes, depreciation and amortization (EBITDA) by year five after the deal closes, Agco said.

GSI under review

In its release Thursday announcing the new joint venture, Agco also said it has placed its “grain and protein” business segment under “strategic review.”

That business segment includes Agco’s grain handling systems brand GSI, as well as grain processing equipment brand Cimbria and three livestock housing systems brands: Cumberland, AP and Tecno.

While Agco didn’t give any examples of the options it’s considering for those businesses, it said it will “assess all strategic options to ensure the Grain and Protein customers are serviced in the best way possible, and that the business is best positioned to maximize its full potential.” — Glacier FarmMedia Network

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“We tried a bunch of pulse crops, including field peas, chickpeas, lentils, faba beans, soybeans, and we also tried it on irrigated durum and hemp,” said Farming Smarter researcher Gurbir Dhillon. “Seedling emergence and stand establishment improved across the board for all crops with the narrow-row (precision) planter.”

But looks don’t pay the bills when it comes to seeding equipment, and several years of Farming Smarter trials suggest it can be hard to make an economic case for a pricey precision planter.

“We started this project with canola and we saw a yield advantage with canola, especially under irrigated conditions,” said Dhillon.

“(But) in the years with low rainfall, we didn’t see an advantage to the planters when it came to canola yield.”

Still, there’s a lot of interest in how a precision planter can perform. Some of that interest comes from producers who already have one because they’re growing corn or soybeans. Other farmers would like to see improved emergence rates, which should also result in more even stands at harvest time.

READ MORE: Precision planter research is encouraging

“Farmers wanted to be able to improve their canola emergence and they were interested in seeing if they could do it using the precision planter,” said Dhillon.

Farming Smarter researchers conducted trials at five dryland sites (at Lethbridge, Medicine Hat, Brooks, Taber and Enchant) over four years, using both an air drill and a precision planter to plant narrow rows (12 inches) and wide ones (22 inches). The narrow precision-planted rows had higher yields when rainfall was decent but in dry years that yield advantage disappeared.

It was a similar story for pulses, and yield advantages were not as consistent as in canola.

“In general, the planters yield better than the air drill or as good as the air drill,” said Dhillon.

The results were intriguing enough that if funding can be found, he would like to conduct further trials with a closer look at seeding rates.

“In the future, we do want to look at the better stand establishment with the pulse crop,” he said. “What’s the best agronomy to go ahead, especially with seeding rate? If there is better emergence with the precision planter, farmers may be able to cut down on their seeding rate.”

Farming Smarter researchers would also like to study pulse crops on irrigated acres.

“We want to see if there’s a similar advantage on irrigated production for pulse crops and what are the best systems that go with precision planting,” said Dhillon.

Fall seeding gets a test drive

Another ongoing research interest for the Lethbridge-headquartered organization is fall-seeded crops, a goal driven by southern Alberta’s ongoing soil erosion problem.

“We wanted to be able to keep the surfaces covered during that fall season so that wind erosion doesn’t remove the top inch of our soils,” said Dhillon. “One option is to go with cover crops, but fall seeding of some cash crops could be another option.”

The goal was to see how well crops established before freeze-up, how well they overwintered, and if there was an advantage in terms of using early spring moisture.

READ MORE: A few pointers on fall rye and winter wheat production

Researchers seeded fall rye, winter wheat, oats, lentils, barley, peas and camelina.

“Certain fall-seeded crops, such as camelina, showed a better ability to utilize early spring snow melt moisture, which was especially valuable due to drought conditions in 2021 and early spring 2022,” Dhillon said.

“Furthermore, despite the difficulties in controlling weeds in novel crops such as camelina and lentil cultivars, fall-seeded crops displayed a tendency to overpower weeds due to their early spring growth. Fall-seeded production can be a value option for many crops, specifically camelina, lentils and wheat.”

The test sites were in Lethbridge, Bow Island and Enchant — and location mattered.

“The establishment, growth and yield of fall-seeded varieties differed significantly between these locations,” said Dhillon. “The occurrence and duration of low soil temperature periods played a critical role in determining the overwinter survival of winter crops.

“According to the winter conditions observed in 2021-22, Lethbridge was found to be the most favourable location for winter crop production, followed by Bow Island.”

However, these observations are based on just one year of data.

The organization plans to continue the experiment once funding has been obtained. Dhillon especially wants to take a closer look at winter camelina because it showed potential. It was hardy, easily able to compete with weeds (and much better than spring camelina on that score), and also had higher yields.

“We’re planning to do two trials on the agronomic management of fall seeding camelina, and are just waiting for funding decisions,” said Dhillon.

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That’s a key finding from a four-year small-plot study by Farming Smarter researchers after adjusting a precision vacuum planter to 12-inch row spacings.

“We averaged 10 per cent better and did up to 15 per cent better depending on the location and the years,” said Lewis Baarda, research lead of the Lethbridge organization.

“That’s a big, big deal — 15 per cent is a lot. That was pretty exciting.”

The study also compared the results of 12-inch and 20-inch spacings. The latter yielded the worst of all three methods, although Baarda said it still produced better establishment and more uniform staging than seeding with an air drill. Ultimately, the planter on 12-inch row spacing yielded around 30 per cent more canola than one on 20-inch spacing.

The results came as a surprise to the researchers, especially considering the row-spacing piece was actually a secondary component of the overall project, which included two trials. (One on a range of seeding rates between the planter and an air drill and the other on the potential for seed burn at varying levels of liquid phosphorus in crop rows.)

As it turned out, those two factors proved secondary.

“The row spacing ended up being the real story,” said Baarda.

Precision makes a difference

The research supports claims by advocates who say planters produce better seed placement and waste less seed.

“With an air seeder you have a meter that meters the seed into the lines and then the air blows it down (into the opener),” said Baarda. “It’s kind of haphazard. (The seeds) get hung up and move around.

“By the time the seeds get into the opener they could be coming out in clumps. There’s not a whole lot of precision.”

Precision planters, meanwhile, meter seeds out one at a time so each one is placed equally distant from one another. Although not all precision planters use vacuum technology, the planter used by Farming Smarter used disks and vacuum technology to place seeds into the soil.

“The disks have this series of holes in them and each hole sucks the seed into it. As the disk turns it drops those seeds one after another,” said Baarda. “Put simply, there’s uniform placement and uniform depths and that’s where the advantage comes from.”

Planter beats air drill in most categories

Farming Smarter conducted the study in three locations: Lethbridge dryland, Lethbridge under irrigation and Cypress County dryland. The planter outshone the air seeder on almost every front on 12-inch spacings, said Baarda.

“As far as emergence and establishment were concerned, the planter hands-down performed better,” he said. “We got canopy closures sooner with the planter, certainly on the 12-inch spacings. Staging was more uniform than the air drill on either row spacing. With the air drill there was spatial variability in seed placement, as well as staging variability due to varying depth of seeds.”

The flowering stage “was all over the place” when using an air seeder, but not with the precision planter.

The results on seeding rates and seed burn proved somewhat ineffectual, said Baarda.

“(We found) that the planter might be safer at lower seed rates. On the seed safety side, we looked at whether there was going to be seed burn from phosphorus in a 20-inch row. We found there wasn’t really much of an effect there other than with really, really high rates that you probably wouldn’t apply in the real world.”

Wider row spacing ‘detrimental’

Twenty-inch row spacing was used as a control in the study because it’s the typical adaptation producers make on planters when switching from larger-seed crops such as corn, dry beans and soybeans (in which 30-inch spacings are often used) when planting smaller seeds such as canola, said Baarda.

The 20-inch row ended up being detrimental to yield, he said.

“From a plant standpoint, you’re packing a lot of plants in fewer rows and they’re competing with each other fairly early on. With the narrower rows that seed spacing is a little farther apart within the row which gives the plants a little bit more time to grow before they compete.”

There is also better canopy closure.

“With the narrower rows you are filling in that space between the rows a little sooner to take advantage of moisture and nutrients between the rows,” he said.

Obstacles to adoption

However, canola planters come with some downsides — which may be why producers aren’t breaking down dealership doors to get their hands on one. Cost is the biggie.

“If you look at the cost per acre to run them, planters are definitely more expensive than air seeders,” said Canola Council of Canada agronomist Autumn Barnes, citing Manitoba Agriculture numbers.

“If you compare a planter to a larger independent opener drill — which should have excellent placement if calibrated and set properly — you can see that the custom rate is $13.09 per acre for a large size (66 feet to 86 feet). A 24-row planter should be around 40 feet wide on 30-inch spacings and comes with a custom rate of $30.14 per acre.

“The custom rate comparison isn’t perfect but it is a good starting point to understand the cost of owning, running and maintaining the equipment.”

Baarda said farmers are interested in planters but they’re taking a “wait-and-see” approach. These planters were originally designed with conventional row crops such as beans and corn in mind; it’s been farmers and researchers who have been adapting them to work with canola.

Some producers would like to see the tech become suitable for other crops (including other small-seed crops) as well, said Baarda.

“At this point it’s more of a specialized tool,” he said. “Something we would like to see is for farmers to be able to adapt planters for a broader range of crops so it’s not just a tool for row crops or canola, but a tool for a variety of crops so you can use it where it best fits.”

And then there’s the fertilizer pass question.

As things stand right now, producers have to make a separate fertilizer pass if they’re seeding with a planter.

“If you are working under irrigation and incorporating fertilizer ahead of time that’s probably no big deal at all. But on dryland it’s going to mean an extra pass,” said Baarda.

“I think work needs to be done to turn it into a better one-pass system. For canola, where you might grow it both under irrigation or on dryland, some work needs to be done to build in some of those efficiencies.”

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In filings to the U.S. district court in Delaware, Deere alleged that products made or sold by Precision Planting, including vSet seed meters along with SpeedTube products, infringed on its patents.

The company said the patents protected its inventions that facilitate accurate seed placement, uniform seed spacing and even crop emergence.

“Deere has suffered damages as a result of the direct and indirect infringing activities of Defendant and will continue to suffer such damages as long as those infringing activities continue,” the company said in the lawsuit.

According to the lawsuit, the company is seeking unspecified damages.

Kelli Cook, a spokeswoman for both Agco and Precision Planting, declined to comment on the litigation.

Agco bought Precision Planting from Monsanto arm The Climate Corp. last September, after the world’s largest seed company terminated its 2015 agreement to sell the unit to Deere.

–– Reporting for Reuters by Rajesh Kumar Singh in Chicago and Ankit Ajmera in Bangalore.

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DuPont — which as of last week had all regulatory approvals and clearances lined up to complete its merger with Dow Chemical — announced Wednesday it has signed a deal to buy software firm Granular, Inc. for an undisclosed sum.

Granular, set up in 2014, now serves growers covering nearly two million acres in the U.S., Canada and Australia. Its products include its Farm Management Software (FMS) line and, in the U.S., AcreValue.com, which it bills as “the leading digital marketplace for farmland real estate.”

DuPont executive vice-president James Collins, in a release, described the deal for Granular as “an important component of our commitment to leading and shaping the ag tech market.”

Specifically, DuPont said Wednesday it’s creating a “digital agriculture ecosystem to support information sharing, services and commerce.”

Buying Granular, the company said, “will enable the business to connect growers, analytics and public and private data to advance our vision for a digitally connected, more sustainable agriculture industry.”

Collins hailed Granular as “a clear market leader, as evidenced by its rapidly growing customer base and its existing partnerships with agriculture industry leaders, such as the recently announced integration of Granular into John Deere’s Operation Center.”

Granular’s affiliations other than Deere include Precision Planting, the planting equipment arm of Monsanto subsidiary The Climate Corp. Farm equipment manufacturer Agco last month announced an unrelated deal to buy Precision Planting for an undisclosed sum.

DuPont’s takeover of Granular is expected to close in DuPont’s third quarter. Granular CEO and co-founder Sid Gorham then becomes head of digital agriculture for DuPont, an arm that also includes DuPont’s Encirca agronomic software business.

“I am confident that as part of DuPont we will make a bigger impact even faster. DuPont shares our vision for using technology to help farms improve their dollar yield, not just their bushel yield,” Gorham said in DuPont’s release.

Granular’s advisory board today includes a Prairie producer as one of two non-U.S. members. Kristjan Hebert, managing partner of Hebert Grain Ventures (HGV) at Moosomin, Sask., is also board chairman for Global Ag Risk Solutions and a member of Bayer Cropscience’s Grower Advisory Forum.

DuPont and Dow recently agreed to close their merger deal effective Aug. 31, at which point they plan to spin off their combined seed and crop protection businesses into a separate company. — AGCanada.com Network

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“Precision Planting is a strong business that plays an essential role in the growth and adoption of innovative precision ag practices that help farmers enhance their productivity,” said Mike Stern, chief executive officer for The Climate Corporation in a release. “As a leading global equipment manufacturer, AGCO is uniquely positioned to enable broader distribution of Precision Planting technology and will continue the development of innovative products that improve the efficiency and productivity for farmers around the world.”

“The acquisition of Precision Planting will solidify AGCO as one of the global leaders in planting technology and strengthen our position as a full line partner for professional farmers across the globe,” said Martin Richenhagen, AGCO’s chairman, president and chief executive officer.

The Climate Corporation’s Climate FieldViewTM digital agriculture platform will retain connectivity with Precision Planting’s 20/20 SeedSense monitor.

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The U.S. Department of Justice filed suit in August last year to block the proposed US$190 million deal, alleging the deal would lead to higher prices for high-speed precision planting equipment.

San Francisco-based Climate Corp. on Monday announced Monsanto’s “termination” of the deal, a sale which was first proposed in November 2015.

Closing the deal, the company said Monday, “has been delayed by Department of Justice concerns with the transaction.”

Two related agreements are also halted as a result of the cancelled deal, Deere said, including the ag equipment giant’s “Digital Ag Connectivity” agreement with Climate Corp.

Monsanto said Monday the end of that digital collaboration agreement will have “no impact” on current users of Climate Corp.’s Climate FieldView system who use Deere’s Wireless Data Server (WDS) to stream data into their account.

Climate Corp. had started selling the Climate FieldView system to producers in Eastern Canada last fall for use in the 2017 crop season. Beta testing recently began for a rollout in Western Canada toward year’s end.

A separate agreement last fall with precision ag equipment firm Ag Leader — which would have allowed the Iowa company to make and sell Precision’s SpeedTube line and related tech such as Precision’s vSet, vDrive and DeltaForce systems — is also cancelled, Deere said Monday.

The Ag Leader deal had been conditional on the closing of Precision Planting’s sale to Deere.

“We are deeply disappointed in this outcome as we remain confident the acquisition would have benefited customers,” John May, Deere’s president for agricultural solutions, said Monday in a separate release.

Deere and Monsanto had planned to present their case for approval of the acquisition later this year, the ag equipment firm said.

“With an opportunity to see this to conclusion, we believe it would have been clear the challenge to the transaction was based on flawed assessments of the marketplace,” May said.

A Deere spokesperson last fall told the Reuters news service the DOJ’s antitrust suit followed a protest by an unnamed Deere competitor.

Deere’s position, the spokesperson said, is that the suit was “designed to protect a competitor, not competition.”

U.S. acting assistant Attorney General Andrew Finch, in a release Monday from the justice department’s antitrust division, described the companies’ decision to scrap the deal as “a victory for American farmers and consumers.”

If the deal had gone ahead, he said, “significant head-to-head competition” between Deere and Precision Planting “would have been lost,” as a sale would have combined “the only two significant U.S. providers” of high-speed precision planting systems.

Climate Corp. said Monday it made the strategic decision in 2015 to focus its business “exclusively” on its digital ag platform and that strategy “has not changed.”

Climate still aims to sell the Precision Planting equipment business and has “spoken with several third parties that have expressed interest in purchasing it,” the company added Monday.

For its part, Deere said Monday it “will remain focused on enabling customers to efficiently leverage their data to drive better decisions on their farms through the John Deere Operations Center.” — AGCanada.com Network

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Deere announced its planned acquisition of Precision Planting in November 2015, for about US$190 million. Precision Planting’s parent is The Climate Corporation, a unit of Monsanto.

In August, the Justice Department said the proposed deal would mean higher prices for high-speed precision planting equipment, which allows farmers to plant row crops, such as corn, up to twice as fast as with conventional machinery.

In its response, Deere challenged the Justice Department’s definition of “high-speed precision planting system,” saying it was vague and ambiguous. Deere also denied “that there is any meaningful economic market consisting of ‘high-speed precision planting systems.'”

The Justice Department declined to comment on Thursday.

Deere said the Justice Department initially cleared its proposed acquisition in October 2015 in compliance with the Federal Trade Commission’s Hart-Scott-Rodino Act. Clearance is separate from actual approval of a deal.

Following a protest by an unnamed Deere competitor, the Justice Department opened a new investigation and later filed a lawsuit in August 2016 to block the transaction, Deere spokesman Ken Golden said, referring to legal documents the company filed on Wednesday.

“It is our position that this case is designed to protect a competitor, not competition,” Golden said.

Both Deere and the Justice Department declined to name the competitor.

CNH Industrial and Agco are Deere competitors that have agreements to factory-install Precision Planting equipment on their new planters. Precision Planting equipment and technology can also be retrofit on older planters manufactured by Deere, Kinze Manufacturing, CNH Industrial and Agco.

Deere said the company’s commitments to CNH Industrial and Agco, and its license grants, technology transfers are all “pro-competitive.”

Additionally, Deere entered into an agreement with Ag Leader, an agricultural technology company, to manufacture and sell Precision Planting products if the acquisition is completed, as a possible remedy to the Justice Department’s competition concerns.

Ag Leader will remain an independent competitor in the precision agriculture industry, a statement on the company’s website said.

Deere’s proposed deal is part of a wave of consolidation among agriculture companies as they search for ways to cut costs and improve profits in the face of a shrinking farm economy. Seed and agrochemical producers Monsanto and Germany’s Bayer have agreed to merge, while ChemChina wants to buy Syngenta AG in a US$43 billion deal.

— Meredith Davis is a reporter for Reuters in Chicago. Additional reporting for Reuters by Karl Plume.

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Deere and Ag Leader announced Wednesday they will have a licensing agreement in place allowing Ag Leader to make and sell Precision’s SpeedTube line and “related technology,” such as Precision’s vSet, vDrive and DeltaForce systems.

The agreement — which hinges on Deere successfully buying Illinois-based Precision from Monsanto subsidiary The Climate Corp. — would allow Ag Leader to integrate those systems into its own SeedCommand systems and InCommand displays.

Ag Leader, whose Canadian sales network includes 16 dealers in six provinces, said it also plans to “build upon this technology to deliver future planting equipment innovations that support higher planting speeds.”

“When this prospect arose, we knew it was worth looking into for our customers and dealers, as high-speed planting is an emerging precision agriculture technology,” Ag Leader president Al Myers said.

Deere’s agreement with Ag Leader is far from a done deal, as Deere’s November 2015 proposal to buy Precision hasn’t yet closed and faces a civil antitrust lawsuit from the U.S. Department of Justice (DOJ), seeking to block the sale.

The DOJ said Aug. 31 a Deere/Precision deal would combine “the only two significant U.S. providers of high-speed precision planting systems,” which, it alleged, could allow Deere to “raise prices and slow innovation at the expense of American farmers who rely on these systems.”

Deere, which plans to contest the DOJ suit, said Wednesday its deal with Ag Leader “will expand competition and the availability of various planting solutions, as Ag Leader will be allowed to sell Precision Planting products using the current names that farmers have come to trust.”

Both companies emphasized that, under the deal, Ag Leader would remain “a completely independent competitor to Deere and Precision Planting.”

Deere said Wednesday it also expects Ag Leader will sell Precision Planting components to retrofit Deere and “other brands” of planters, and offer a “separate and competitive source of supply” for manufacturers who choose to use Precision Planting components.

Thus, Deere said, a deal with Ag Leader “further enhances competition and innovation in the market and expands customers’ choices for planting equipment, whether they are buying new machinery or retrofitting older planting equipment made by various manufacturers.” — AGCanada.com Network

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Appearing Wednesday at Canada’s Outdoor Farm Show, company representatives announced their suite of digital farm data tools, Climate FieldView, will be offered for sale in Eastern Canada this winter, for use in the 2017 crop season.

Pricing for the Climate FieldView package in Canada will be available this fall, the company said. Farmers will be able to access field-level weather insights, including notifications and scouting, plus satellite imagery for free on two trial fields.

“Through the advanced digital tools in the Climate FieldView platform, Canadian farmers can instantly visualize and analyze crop performance with field data maps and satellite imagery, so they can tailor their agronomic practices for the best outcome at the end of the season,” Climate CEO Mike Stern said in a release.

Launched in the U.S. in 2015, tying Climate Corp.’s existing offerings into a single platform, Climate FieldView has since been used on more than 92 million acres in the U.S. by over 100,000 U.S. farmers, the company said.

Farmer customers will be able to use Climate FieldView Drive for “simple data collection, storage and visualization” by transferring field data from farm equipment into their Climate FieldView accounts, said the company, which been an arm of Monsanto since 2013.

FieldView Drive captures planting data and harvest data such as yield, and digitally displays that data in a farmer’s account. The system will work with “many” tractors and combines in Eastern Canada, the company said.

Farmers can also connect field data to their Climate FieldView account via Precision Planting’s 20/20 monitors and John Deere’s Wireless Data Server (WDS) system, the company said.

Climate FieldView also allows cloud-to-cloud connection with “many” other agricultural software systems, as well as manual file upload, the company added.

Climate FieldView also provides yield analysis tools to gauge seed performance by field and hybrid, and offers high-resolution field satellite imagery, including the capability to drop geo-located scouting pins on field health images.

The system also offers field-level weather information and notifications, including historical, real-time and forecasted weather, “to decide which fields are workable based on average field precipitation and wind speed.”

Customers, the company said, should sign up by Jan. 1 if they want to “experience the complete value of the platform throughout the entire season.” — AGCanada.com Network

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