Farm Equipment interviewed Alan Hagie, CEO of Hagie Manufacturing as part of a special report 2 years ago on Alternative Distribution Models. At a time when brand purity efforts were “heating up,” our editorial staff polled industry experts on the various alternative methods of equipment distribution and what they saw as the pros/cons of each model. One of the models we examined was “Direct to Farmer Sales."

At that time, the best example of a manufacturer having success with a direct sales model on a large scale was Hagie Mfg. Read the April 2014 article featuring an interview with CEO Alan Hagie about his firm and why the company chose to stake its claim on the factory-direct sales and service model.

How the Factory-Direct Model Works for Hagie

MOLINE, Ill. — Deere & Co. has entered a joint venture with Hagie Mfg., the U.S. market leader in high-clearance sprayers. In the agreement, Deere acquires majority ownership of Hagie Mfg., which will continue producing sprayers in its current Clarion, Iowa, location.

Equipment made by the joint venture will continue to carry the Hagie brand while sales and service for Hagie equipment will be integrated into Deere’s global distribution channel over the next 15 months.

“Hagie Manufacturing is known for innovation and its strong customer understanding in high-clearance spraying equipment,” said John May, president, Agricultural Solutions and chief information officer at Deere. “High-clearance spraying equipment is a new market for Deere. The expertise at Hagie allows John Deere to immediately serve customers who need precision solutions that extend their window for applying nutrients.”

Alan Hagie, chief executive officer at Hagie Mfg., said, “We have great products at Hagie that help producers be more profitable, but we need a business model that helps us reach more customers. This partnership with Deere allows our solutions to reach customers on a global scale and ensure they are supported with the world-class Deere dealer organization.”

May said the joint venture investment allows John Deere to provide a broader range of sprayer options and integrate Deere’s precision technology into the Hagie equipment to help customers reduce costs and improve yields.

A letter regarding the joint business partnership was sent to customers.

Read the letter