How do you think the overall advances in application equipment over the past five years will affect ag retailers?

I don't think there has ever been a time in our industry when so many technological changes have been coming at us so quickly. It's exciting just waiting to see what comes next. Engines are the first things that come to mind. All manufacturers are moving quickly to finish Tier II requirements and moving on to Tier III. These new engines are efficient and, more importantly, reliable. Overall, reliability and productivity of application equipment have improved greatly.

The next thing on the horizon is autosteer systems. Many manufacturers already have this technology available, and more are jumping on the bandwagon. I think you can compare this to the early days of mechanical front-drive tractors. When MFD tractors first came out, people asked why they should pay so much for the feature. Now, most people wouldn't think of a tractor without MFD. We're at that early stage on autosteer, but it won't be long until it's a standard feature.

Are GPS technologies on application equipment growing in use? Are retailers adopting this technology, or is this segment of the business stagnant?

Site-specific agriculture, including GPS technology on application equipment, continues to evolve and become more sophisticated. Top dealers are growing all profit-generating services. Providing growers with information essential for solid crop decision making is fundamental to successful ag retailing, and site-specific data are key to developing that information.

Growers are willing to pay for reliable information that will help in their decision-making process, but there are still some retailers that seem to be reluctant to provide this sort of credible, science-based material.

A couple of years ago, you told us that return on investment (ROI) was the number-one priority for retailers in regard to use of self-propelled sprayers. Do you still believe that?

Yes — it remains one of the key factors when making purchase decisions. However, there are some differences now compared to a few years ago. In the past, horsepower was king. Everyone wanted bigger. Today, astute buyers realize there are costs that accompany horsepower. Power costs money and increases the cost of operation. More retailers are doing research and are matching equipment to their needs so they maximize the return on their purchases.

Are you seeing that the upturn in the economy is translating into more purchases of new application equipment than in years past?

There's nothing like an increase in commodity prices to improve sales. When retailers sense that growers will increase their purchases, they usually ramp up their purchases as well. They realize that last year's fleet may not be capable of looking after this year's business. We're also seeing more growers interested in acquiring their own application equipment. When you couple improved commodity prices with some great tax incentives, you get a hot market.

What are the trends in application equipment purchasing? For example, are retailers looking for good used equipment before buying new? Are all looking for the best financing options?

As I said earlier, I think that more retailers are looking beyond just raw horsepower. By matching equipment to their needs, they are making the most economical and practical decision for their business.

We see a strong demand for used equipment. Used sales are at the highest levels we've experienced in the past nine years. This is partially due to some creative financing options, but it's also become appealing to those who are unable to justify new or who are looking for a filler to meet increasing demand. Some larger growers also fit into this category.

Leasing also seems to have become the financing option of choice among many buyers.

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