What this article covers:
- Jahmy Hindman, Chief Technology Officer at John Deere, said to CNBC that the world’s most significant agricultural equipment player is in the midst of closing a satellite partner.
- The aim is to primarily outline a geospatial map that farmers deem helpful in measuring the crops’ productivity and performance.
- Presently, plenty of farmers lean on the data gathered by its See & Spray device to spot which parts of the farm require further fertilization. Las Vegas’s Thursday show on Consumer Electronics will present this technology among the others.
John Deere Breaking into action
From drones to robotics, it’s now come down to satellites.
Jahmy Hindman, Chief Technology Officer at John Deere, said to CNBC that the world’s most significant agricultural equipment player is in the midst of closing its satellite deal.
“We really have been focused on trying to solve connectivity, globally. We look at the burgeoning efforts that are happening in low Earth orbit satellites as an example – potentially – for us to start to solve some of those connectivity issues,” said Hindman.
The aim is to primarily outline a geospatial map that farmers deem helpful in measuring the crops’ productivity and performance.
He added, “There’s so much friction and getting that data from the field into the cloud, where they can do something useful with it, that it really isn’t used very effectively at all.”
Referring to the moment when satellites finally gain recognition and are put to use, Hindmand states that their firm is “right at the cusp” of resolving the issues relating to connectivity faced by most farmers.
Presently, plenty of farmers lean on the data gathered by its See & Spray device to spot which parts of the farm require further fertilization. Las Vegas’s Thursday show on Consumer Electronics will present this technology among the others.
All for the Agro Sector
Although the global economy has arrived at a declining stance, the agricultural sector seems vigorous.
Although the crop market is currently fluctuating, they’ve doubled in digit percent after three years. In addition, soaring rates for crops like wheat and corn have intensified profits for farmers.
DA Davidson’s USDA number quotation said that cash receipts for corn picked up by 32% last year compared to 2021. Senior research analyst at DA Davidson, Michael Shlisky, wrote in a client note that cash receipts for 2023 are anticipated to move up still further.
A sigh of relief is that the prices for fertilizers and chemicals have been cut down in recent months, enhancing farmers’ outlook for the year.
In an agricultural equipment market, where John Deeres appears to be leading the way, farmers are expected to carry on with their consumption and spending in this sector through the additional funds available to them.
2022 was an excellent year for Deere, with its shares gaining 20%, enormously outdoing the XLI Industrials ETF, which lost 7%.
What Gabelli Funds has to Say
Gabelli Funds, which has been a long-time investor, continues to be bullish about the agricultural equipment manufacturer.
Gabelli Funds’ portfolio manager, Brian Sponheimer said to CNBC, “We would expect the stock to perform well as the year sets up as a good one for the industry. Limited supply has effectively elongated the cycle while keeping used machinery prices high. At the same time, the company continues to offer technologies that make the farmer considerably more productive than the machines used in each previous version.”
How China’s Reopening Can Ease this Industry
Though the supply chain problems have called upon a lot of suffering on Deere and the vastly spread sector, Hindman vouches that China’s comeback might bring relief this year.
Hindman further said, “In addition to being a large agricultural consumer, they’re one of the world’s largest producers of the things that we all need in order to fill our supply chains. We do hope China reopens in 2023. The supply chain will begin to normalize and stabilize a bit.”
War-Effects on the Agricultural Economy
The current flaring conflict in Ukraine has brought a twist of fate for the agriculture industry, with rapidly rising rates.
Since the war outbroke, wheat prices have climbed by 40% and are currently over 20% of the prices before the war, as per the numbers released by Melius Research.
Melius Research’s founding member, Rob Wertheimer, said to CNBC, “The war has certainly added uncertainty to crop prices.”
- Published By Team Nation Press News