In this episode of On the Record, brought to you by Associated Equipment Distributors, we have details on Titan Machinery surpassing its Fiscal 2026 inventory reduction target of $150 million and CEO Bryan Knutson’s perspective on positioning the company for the next phase of the cycle. In the Technology Corner, Noah Newman checks in from the FEMA Supply Summit and Showcase in San Antonio with some insights from Jeremy Groeteke, Global Head of IT and Digital Strategy at Syngenta. Also in this episode, we cover the EPA’s emergency fuel waiver allowing nationwide E15 sales this summer, how the escalating Iran War is increasing fertilizer and fuel prices, potentially causing farmers to reduce corn acres for soybeans, and a slight rise in the Farm Capital Investment Index. 

    Associated Equipment Distributors

This episode of On the Record is brought to you by Associated Equipment Distributors — the leading association in North America for the equipment distribution industry.  

Get ready for a powerful start to the year with AED’s packed lineup of Q1 and Q2 events designed to connect, educate, and energize industry professionals. From high-impact conferences and hands-on training sessions to exclusive member gatherings and strategic leadership programs, AED is bringing together top experts and forward-thinking dealers to share insights that drive growth. Whether you’re looking to sharpen your team’s skills, stay ahead of emerging trends, or expand your network, our first-half-of-the-year events deliver unmatched opportunities to elevate your business and strengthen your competitive edge. Visit www.aednet.org/ for more information.

 

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Titan Machinery Decreases Equipment Inventory by $122 Million in FY 2026

Case IH dealership group Titan Machinery achieved $206 million in cumulative inventory reduction in Fiscal 2026, surpassing its target of $150 million.

Titan president & CEO Bryan Knutson said the dealership achieved the reduction while delivering stronger-than-anticipated equipment margins. He said Inventory levels peaked in the second quarter of fiscal 2025, and over the next 18 months the dealership  reduced total inventory by $625 million. 

Knutson said, quote, “We will continue to focus on optimizing the mix of our inventory but do not have further targeted reductions from an overall inventory level perspective as we head into fiscal 2027. The work we put in this year to right-size our inventory gives us a fundamentally stronger foundation to operate from, and I'm confident it will prove to be a pivotal step in positioning Titan for the next phase of the cycle."

Following Titan's earning call with investors, Mircea (Mig) Dobre with Baird noted, “FY27 guidance incorporates a sustained decline in the U.S., with Europe also set to become a headwind after acting as a partial earnings stabilizer in FY26. These dynamics (coupled with minimal upside elsewhere) are set to keep earnings under pressure.”

“While guidance did de-risk the year to some extent (it is difficult to see much downside to the initial guide), upside is also limited as visibility into demand recovery remains elusive. Another loss making year means tangible book value continues eroding and this remains the key valuation anchoring point ... multiple expansion (on lower TBV) will require tangible signs of cyclical/earnings reacceleration.”

Dealers on the Move

This week’s Dealer on the Move is Butler Machinery. The AGCO dealer has purchased a facility in Mitchell, South Dakota, further strengthening its presence and service capabilities across the region.

For several years, Butler Machinery has evaluated opportunities to expand in the Mitchell area to better support its growing customer base. The new location fills a key gap in the company’s parts and service coverage model, enhancing accessibility and responsiveness for customers throughout this portion of South Dakota.

The property, located on the bypass just west of Mitchell, includes approximately two acres of land and a 60' x 80' building. The site will operate as a satellite location, supported by Butler Machinery’s existing teams in Sioux Falls and Huron.

‘There’s No Going Back’ … Advice for Getting Started with AI

Noah Newman checks in from the FEMA Supply Summit and Showcase in San Antonio with some insights from Jeremy Groeteke, Global Head of IT and Digital Strategy at Syngenta. Newman caught up with Groeteke after his presentation on AI and data and asked him for some advice for farmers, dealers and manufacturers who are just getting started with AI.

“It's just get started, right? As simple as downloading the apps, using the free version, hit up a training course. There's tons of those out there, LinkedIn, YouTube, universities have programs, MIT. There's a bunch of programs out there you can do, so just dive in and get started. There's no going back. The quote I use is, "The individual that leverages technology will outcompete the individual that doesn't use technology." And so just get started and get going.”

Stay tuned for our full interview with Groeteke coming soon to PrecisionFarmingDealer.com.

Commodity Ticker 

As of March 25, corn prices were $4.67 up 13 cents from our last episode. Soybeans closed at $11.71, up 16 cents. Wheat closed at $5.97, down $1.00 and Class III milk prices closed at $17.76, up 96 cents.

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EPA Issues Fuel Waiver Allowing for Nationwide E15 Sales this Summer 

On March 25, the Environmental Protection Agency issued a temporary emergency fuel waiver to allow nationwide sales of E15 — gasoline blended with 15% ethanol — and to remove all federal impediments to selling E10 across the country. 

AED president and CEO Brian McGuire commended the move and said in a statement, “E15 is an essential tool, along with other biofuels, to increase markets for crops, and its well-past time for Congress to pass legislation authorizing year-round E15. Further delay in enacting this commonsense policy is unacceptable as the nation’s farmers continue to struggle to survive.”

In a letter to Senate and House leaders, McGuire said, “Renewable fuels boost farm revenue, save consumers money, and strengthen rural communities. After producing a record corn crop in 2025, expanded corn markets are urgently needed as growers still faced a third consecutive year of net losses. Removing restrictions on nationwide, year-round sale of E15 would provide essential market-based relief."

The National Corn Growers Association estimates year-round E15 would increase U.S. corn demand by 2.3 billion bushels annually. Drivers would save 25 cents per gallon— $20.6 billion each year. Ethanol creates jobs in communities where leading agricultural equipment dealers, employees, and their customers live and work. 

Prolonged Iran War Could Impact Farm Decisions, Corn Acres 

As spring planting season approaches, farmers across the U.S. and Canada are facing soaring fertilizer and fuel prices as the war in Iran escalates, according to a Reuters report from Naveen Thurkal and Ed White.

According to Faith Parum, Ph.D, an economist with the American Farm Bureau Federation, Iran holds some of the world’s largest natural gas reserves, and natural gas is the key feedstock used to produce ammonia, the foundational input for most nitrogen fertilizers. Urea, which contains about 46% nitrogen, is the most widely used solid nitrogen fertilizer globally and plays a central role in crop production systems.

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“Prices could jump higher if the Persian Gulf closure persists and shipments can’t make it in time for spring planting, analysts told Reuters. ‘Literally, this could not happen at a worse time of the year,’ said StoneX analyst Josh Linville.”

“American farmers are entering the 2026 spring planting season amid geopolitical tensions involving Iran and nearby Persian Gulf countries, which adds uncertainty to global energy and fertilizer markets,” Parum said. “This timing matters because fertilizer purchasing, field preparation and early season fertilizer applications are already underway, limiting farmers’ ability to adjust if input prices spike suddenly. Anecdotally, farmers are already considering reducing corn acres planted in exchange for crops like soybeans that are less exposed to fertilizer price volatility.”

According to Seth Meyer, former U.S. Department of Agriculture chief economist and now at the Food and Agricultural Policy Research Institute, farmers might alter crop choices and fertilizer applications due to the price spike, Thukral and White reported. “Farmers need fertilizers for virtually all their crops if they want a good yield, but each crop and the soil they are grown in have different demands. Farmers could cut back on corn, which requires high rates of nitrogen fertilizer, or else sharply reduce fertilizer application rates, Meyer said.”

Dan Basse, founder and president of AgResource, has already adjusted his projections, taking his corn planting estimate down about 1-1.5 million acres relative to the war and fertilizer. 

Before the conflict with Iran escalated, Basse was projecting roughly 94.5 million acres of corn, which he’s now lowered to 93-93.5 million acres. At the same time, he has increased his expectations for soybean planting, increasing his estimate to 86.5-87 million acres. 

DataPoint: Farm Capital Investment Index Rises Slightly 

This week’s DataPoint is brought to you by the 2026 Dealership Minds Summit, coming to Springfield, Ill., Aug 4-5. The program will be released in April. To learn more an register, visit DealershipMindsSummit.com.

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According to the March Ag Economy Barometer, approximately 44% of respondents indicated that their farm operations were worse off in February than they were a year earlier. Looking ahead 12 months, 29% expected worse financial performance, compared with 18% who expected better financial performance. The Farm Capital Investment Index rose 3 points to 50. However, only 7% of survey respondents indicated that they plan to increase farm machinery purchases in the upcoming year.

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