Precision Revenue Outlook Remains Positive Despite Slight Decline in 2022
10th annual Precision Farming Dealer benchmark study reveals nearly 60% of dealers forecast precision sales to be up at least 2% in 2023.
Precision farming revenue numbers reached new heights for some dealers in 2022 despite an overall decline in growth, and the outlook for 2023 remains mostly positive according to the 10th annual Precision Farming Dealer benchmark study.
The results show that over half (55%) of total respondents estimated their total precision revenue in 2022 to be between $500,001 and $2 million. That number is up nearly 10 percentage points from 2020 and 27 points from 2019. Some 40% estimated total precision revenue to be $500,000 or less, up 14 points from 2020, while nearly 7% estimated $4 million and more, down nearly 3 points from 2020.
More dealers than last year reported a decline in precision revenue growth in 2022. 55% of total respondents estimated their precision sales and service revenue increased 2% or more in 2022 compared to 2021, a 17-point drop from last year. Some 26% reported little or no change, 13% projected a 2-7% decline, and 6% said revenue was down 8% or more from 2021.
In comparison, looking at the 2021 survey, just under 18.6% estimated little or no change, only 7% saw a decline of 2-7%, and 2.3% said revenue was down 8% or more.
Hardware sales represented most of the total precision revenue in 2022 at 56.8%, a 10-point jump from 2021. Service/support (20.1%), signal subscriptions (16.7%), software sales (14.6%), farm data management services (4.5%) and agronomic services (1.7%) rounded out the top 6.
Read the full article on the Precision Farming Dealer website here.
