Editor's Note: This article was originally published in the June 15, 2025 edition of Ag Equipment Intelligence. To view AEI content as it's published, you can subscribe to the monthly newsletter here.
Questions (or gossip if you want to call it that) about what was happening with the Claas contract in the Red River Valley was buzzing several times this spring after the conclusion of the wholegoods contract previously held by Butler Equipment.
Claas’ North American headquarters in Omaha, meanwhile, remained “all quiet on the western front.” That is, until Ag Equipment Intelligence (AEI) staff – on its way to Sioux Falls, S.D., saw 3 Claas executives from Omaha waiting at a Minneapolis Delta gate bound for Fargo. The surprised execs admitted a new arrangement was in the final hours and to expect a forthcoming news release.
Still mum, AEI pushed Claas for an announcement several times throughout the month of May. Finally, as Claas acknowledged that the “whispers have started,” AEI received a release embargoed until June 2.
A Quick Turn of Events
In 2024, Ohio Ag, Ziegler Equipment and Butler Equipment each separated from Claas.
Ziegler’s exit from the Claas contract in its Wisconsin and Missouri locations — described by one observer as “too quick” to properly accommodate all concerns — was regarded as “clumsy” by many in the industry. Butler Equipment, instead opted to work with Claas on a longer arrangement. In the August 2024 announcement, it reported that it would maintain the wholegoods contract for another 6 months (January 2025) and parts and service support through the end of 2026.
The Tractor Became the Issue
According to industry sources, the cancelling of the AOR that was formerly Butler Equipment’s responsibility came as a result of Claas’ insistence on the dealership to force its Xerion tractor in what is known as its “long-line” strategy.
“Claas was coming to market with a tractor and wanted it sold,” AEI was told by an industry source, “but Butler Equipment already had Fendt and Massey Ferguson and didn’t need another tractor line. Claas turned up the heat in 2023 and insisted that Butler carry the tractor line, even though only a few units could be made available. That meant there wouldn’t even have been a loaner available for the dealership if it found buyers. It was much to do about nothing and needless pressure.”
The hard-line approach by Claas, he said, resulted in the dealership’s decision to go its separate ways from Claas in the summer of 2024, much like Ziegler and Ohio Ag had earlier in the year.
He did acknowledge that Butler Equipment was losing the distribution of the “best combine on the market,” but the Xerion, a non-articulated, crab-steering tractor, wasn’t anywhere near up to standard for one of the most important ag markets in the nation. And he added that he doubted the Axion, the old Renault tractor, will have any measurement of success in the U.S.
Butler Equipment did invest in several town hall sessions, certified letters and personally contacted all Claas customers. “Farmers were given 3 harvests to work through,” he said.
Those who bought from Butler can still receive parts/service from Butler Equipment through the end of 2026, or may choose FarmPoint. Other customers who may have bought from other dealers, auction or private parties, would be steered to the FarmPoint location.
Butler, which began its relationship with Claas with its Lexion combine in the late 1990s, later added the firm’s forage harvesters, balers and hay tools to its mix. Butler Equipment has not been a wholegoods dealer for Claas since last February.
Official News Release on Company Store
Titled “Claas FarmPoint Expands into North Dakota,” the news release, which was published on June 2 noted that the Claas FarmPoint model (described as a new company-store dealer model that is less about brick-and-mortar and more about on-the-move service) opened its doors in Buffalo, N.D., and represented its 5th company store operation. The release covered the impact of the state of North Dakota, which Claas reported is “leading the nation in wheat production, ranking second in alfalfa acreage and placing among the top 10 states for corn and soybean output.”
The release stated that the temporary Buffalo, N.D., location will ensure farmers have immediate access to equipment, service and support. It also reported that construction is underway on a permanent facility in North Dakota’s Jamestown area, as well as Devils Lake. The Devils Lake location is scheduled to open ahead of 2025 fall harvest season.
“We’ve seen that the traditional machinery dealership model doesn’t always align with what today’s farmers need for service and maintenance,” says Claas FarmPoint head of commercial development Patricio Frangella. “Our new approach is designed to better support uptime and boost productivity in the field.”
