Deere CFO on Farmer Adoption of New Technologies and Automation

Automation and Farmer Challenges

• 🎯 Automation is a key focus for Deere, aiming to address significant customer challenges, particularly the availability of skilled labor.
• 💡 By automating operator decisions, Deere is moving closer to enabling fully autonomous operations for tractors, combines, and other heavy machinery.
• 🚜 This technology applies not only to agriculture but also to other sectors like road construction with asphalt pavers.

Technology Adoption and Digital Platforms

• 📈 Deere is observing significant appetite, adoption, and utilization of new technologies by farmers.
• 📊 The John Deere Operations Center digital platform has surpassed its 2026 goal of 500 million engaged acres, achieving this a year early, indicating strong customer engagement with digital tools for planting, spraying, and harvesting.
• 🛰️ Connectivity, such as the Starlink contract, is crucial for gathering and utilizing the vast amounts of data generated by precision agriculture.

Affordability and Technology Access

• 💰 Deere focuses on driving customer profitability and ensuring they see positive outcomes from new technologies.
• 🛠️ To improve affordability, Deere offers retrofit options for existing machinery, allowing customers to access new technology at a lower price point.

Market Dynamics and Tariffs

• 📉 The agricultural sector is experiencing cyclical pressures, impacting demand for farm equipment, with expectations of continued softness in North America.
• ⚠️ Trade tensions and tariffs create uncertainty, although trade deals have provided some relief. Deere anticipates an increased tariff burden in 2026 on imported components used in manufacturing.
• 🌎 Brazil remains a huge market for Deere, and the company is navigating geopolitical concerns while remaining confident in its ability to execute.