Deere & Company: Precision Agriculture Adoption & Economics
Current John Deere Dealership Owner
inpractise.com/articles/deere-and-company-precission-agriculture-adoption-and-economics
Current John Deere Dealership Owner
Interview Transcript
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Do you have any direct revenue from software, considering Deere has been introducing a few software add-ons over time?
From the subscriptions we discussed, whether it's per acre, per pass, or the annual subscription, we receive 23% of those revenues. So, yes, we do have an income stream from the sale of subscriptions.
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How significant is that income stream for you?
In the grand scheme of things, it doesn't amount to much. It's probably a couple hundred thousand in revenue, maybe $250,000 annually, but it's essentially 100% margin, making it an important revenue stream.
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Why is it still so small?
In the context of equipment sales, the subscriptions just don't add up to much yet. As this new subscription model grows, I believe it will become a significant portion of our revenue. Within a couple of years, it could triple to $750,000 as the per acre, per pass subscription model continues to expand.
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