Deere & Company is the world’s largest agricultural equipment manufacturer. It has

• almost 200 years of history
• consistent historical through-the-cycle ROE above 20%
• a leadership position in a precision-agriculture oligopoly with North American market share above 50% and rising
• several qualities we value: a dominant position in an oligopolistic industry, high and durable through-the-cycle returns on capital, overlapping competitive advantages that reinforce market-share stability, and a long track record of aligned capital allocation with a share count reduction by more than 40% since 2005.
• returned 100x since 1985 IPO: the share price has compounded at ~12% annually excluding dividends, while EBT per share has grown at a 13% CAGR from the 2008 to 2023 peak-to-peak cycle.

Although the company also operates in construction, forestry, and small-agriculture segments, this piece will be focused on its core large-agriculture business and how Deere's strategic decisions drive greater farm ecosystem control.

Precision Agriculture History