after
- John Deere CTO Jamie Hindman told CNBC that the world's largest farm equipment manufacturer is finalizing its search for a satellite partner.
- Basically, the goal is to create a geospatial map that farmers can use to better monitor crop yields and productivity.
- Currently, farmers can use the information collected by the See & Spray device to understand how much of the field still needs to be fertilized. It's one of the technologies showcased at the Consumer Electronics Show in Las Vegas on Thursday.
Drones, robots, and now satellites.
John Deere CTO Jamie Hindman told CNBC that the world's largest farm equipment manufacturer is finalizing its search for a satellite partner.
“We are really focused on solving communication problems on a global scale. We look at the new efforts being made on satellites in low Earth orbit as an example – potentially – of solving some of these communication problems."
The goal is to create a geospatial map that farmers can use to better track productivity and yields.
“There is a lot of disorganization and moving this data from the field to the cloud, you can do something useful with it that is not used very effectively.” As for when satellites will be used, Hindman said Deere is "on the verge" of solving farmers' communications problems.
Currently, farmers can use the information collected by the See & Spray device to understand how much of the field still needs to be fertilized. It's one of the technologies showcased at the Consumer Electronics Show in Las Vegas on Thursday.
Although the global economy is slowing down, the agricultural market is still hot. Crop prices, while volatile, are still double-digit percentage points higher than they were three years ago. Rising prices for crops, including wheat and corn, have boosted farmers' incomes. In fact, Dr. Davidson cited USDA data that showed a 32 percent increase in corn revenue in 2022 compared to last year. Cash flow is expected to be higher in 2023, DA Davidson Senior Analyst Michael Schlisky wrote in a note to clients. An added bonus: Fertilizer and chemical prices have fallen in recent months, boosting farmers' prospects this year.
With more money in the bank, farmers should continue to spend on farm equipment, but John Deere remains the leader.
Derr shares are up 20% in 2022, well ahead of the XLI Industries ETF, which is down 7%. Gabelli Fund is a long-term investor in the agricultural equipment manufacturer and is optimistic.
“We expect the stock to perform well as the year should be good for the sector. Limited supply increases the price of used items and extends the cycle. At the same time, the company continues to offer technologies that make farmers more productive than the machines used in each of the previous editions,” Brian Sponheimer, Gabelli Fund portfolio manager, told CNBC.
Supply chain issues continue to plague Deere and the industry as a whole, but Hindman is betting that a reopening in China will ease some of the problems in 2023.
“In addition to being a major consumer of agricultural products, they are also one of the world's largest producers of what we all need to fill our supply chains. China in 2010 We hope to open in 2023. The supply chain is starting to normalize and stabilize. Not much,” Hindman said.
Big joke: The ongoing war in Ukraine has caused a sharp rise in agricultural prices. According to Méliès Research, grain prices rose 40% in the six months after the war and are now 20% above pre-war levels.
“The war has definitely increased crop price uncertainty,” Rob Wertheimer, founding partner of Melius Research, told CNBC.