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Ag outlook brings more change to ag equipment space
The central region manager for CLAAS says ag equipment industry uncertainty has led to the closure of four Ziegler Ag stores and ended a 20-year combine distribution agreement between the two companies.
Daryl Theis tells Brownfield “what we’re seeing in the ag market really stems from what’s going on in the commodity markets. In the U.S., we’re largely driven by corn and soybean prices and those have fallen in the last few months,” he says. “When there’s a decline in net farm income, farmers have a tendency to hold off on capital purchases and we’re preparing for that.”
Theis says prioritizing resources to help farmers can help control costs. And he says CLAAS also wants to ensure customers impacted by Ziegler Ag store closures get what they need.
“Our immediate priority is to ensure farmers have the support they need for the upcoming harvest and finding smooth transitions into a future dealer network.”
Late last week, Zeigler Ag said they would close two stores in Wisconsin and two stores in Missouri. CLAAS says there are a network of dealers identified near those locations who can help farmers in those areas get through harvest. Theis says the company isn’t ready to release the details of the new dealer networks yet.
“We’re in conversation with independent dealers in those areas to finalize contracts and our go-to-market approach. Part 2 is our team is out visiting with farmers in Wisconsin and Missouri.”
CLAAS says the combine distribution agreement with Ziegler Ag for all remaining locations will end in 2025.
Hear the interview.
