News Lawsuit
Deere and Agco battle for machine market
Obscure. This is how Bloomberg describes the lawsuit that manufacturers John Deere and Agco are fighting. The case concerns 12 patents for 'gadgets' on seed drills. That sounds trivial, but both machine superpowers could win or lose a $240 billion market with it.
John Deere made June 1 known to have filed a lawsuit against Agco. It concerns 12 patents of the American company Precision Planting, which according to Deere are in conflict with their 'ExactEmerge technology'. Agco, parent company of Fendt, Massey Ferguson and Valtra, has owned Precision Planting since September 2017 and bought the company from Monsanto. John Deere previously sought to buy the company.
profit market
Deere has plenty of reasons to create barriers for other manufacturers, writes Bloomberg† According to research by investment bank Goldman Sachs, the precision farming equipment market will be worth $2050 billion in revenue by 240. This includes not only crop sensors and drones, but also 'gadgets' that ensure a more uniform emergence and more sowing capacity.
John Deere and Precision Planting have marketed similar techniques. Both ensure that you can drive faster and sow more accurately. Deere now wants the ban of 12 used patents and financial compensation as damages. Agco said in a statement that it was not impressed by Deere's allegations.
Special state of affairs
The 2 companies worked on their techniques for years and launched them in quick succession in 2014. According to the lawsuit filed, Deere held 44% of the market at the time and Precision Planting 42%. A takeover of the company was therefore not possible, because Deere would have too large a market share. This is unfavorable for the pricing of their products.
According to Dennis Buckmaster, an agricultural professor at Purdue University in Indiana, the pain lies in the fact that Precision Planting technology can also be used to retrofit older machines. In addition, it works brand-independently. “The company sold as many retrofit parts last year as it sold new seed drills in the United States,” Buckmaster said. "A technique in which old machines can keep up with the latest generation is not what you want on the market as a manufacturer of new sowing machines."
High Speed Planting
The rise of high-speed planting is huge in the United States. Partly thanks to the influence of Precision Planting. In Europe too, manufacturers such as Väderstad, Horsch and Amazone use high driving speeds during sowing.
Niels van der Boom
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