In September the North American Equipment Dealers Assn. (NAEDA) and Associated Equipment Distributors (AED) announced plans to merge the two organizations. The plan is up for a vote among NAEDA dealer member through Nov. 15. 

Under Missouri nonprofit corporation law and NAEDA's bylaws, NAEDA requires a membership vote. In Canada, NAEDA entities fall under the federal Not-for-Profit Corporations Act. Illinois nonprofit law and AED's bylaws stipulate AED's Board of Directors has the legal authority to vote and approve the unification on behalf of AED membership. Therefore, only NAEDA dealer members will participate in a full membership ballot. 

In talking with dealers, association leadership and other industry folks, it’s clear to me that this merger is good for the industry and dealers should vote in favor of it. 

If the two organizations follow through on what has been said so far, merging will be a net positive for dealers.A number of people have repeated that one larger  national association together gives dealers a unified voice in government affairs and manufacturer relations. 

Matthew Larsgaard, president and CEO of the Pioneer Equipment Dealers Assn., and one of the few remaining regional associations still in existence, cited a number of  positives, chief among them are a consolidation of resources to better serve dealers as it relates to government affairs, industry relations and education. “This merger is very welcome and a great opportunity for dealers to strengthen their voice.” 

John Schmeiser, retired association executive for NAEDA and its forbears, says, “Strong associations require resources.Effective manufacturer relations require experienced people who understand OEM programs, dealer agreements and dealership economics. Government relations requires policy expertise and relationships with decision-makers. Training, workforce development, research, legal support and communications all require investment.

“Two organizations maintaining separate infrastructures inevitably creates duplication. Combining their assets and capabilities creates an opportunity to redirect more resources toward activities that directly benefit dealers.” 

Bigger doesn’t automatically mean better, however, he says “Size without purpose accomplishes little,” he says. 

Dealers I connected with by and large said this is a great step for the industry and is a long time coming. One voice for the industry makes sense and carries even more weight with advocacy and manufactures.

Brian Osterndorff, CEO of New Holland dealership Robert’s Equipment in Ontario, says,. “Having been involved with both organizations, I am very supportive of the proposed merger. I believe bringing NAEDA and AED together will create a stronger and more influential voice for equipment dealers across North America.

“I am very positive about the merger. AED has already established itself as a strong advocate for our industry and combining that strength with NAEDA's experience in agricultural dealer relations should create an even more effective organization representing equipment dealers across North America.”

Concerns New Group Will Need to Address 

The move to merge doesn’t come without concerns, however. 

One dealer is  concerned about  a power struggle between the two groups, but added  that if the two groups work together, they will be much stronger. 

Osterndorff articulated a concern shared by a number of dealers, “to ensure that we maintain the unique strengths and relationships of both organizations and that all equipment sectors continue to have meaningful representation.”

Another dealer stressed a  worry the merger could dilute attention away from ag-specific issues like the Farm Bill or specific crop/livestock economic cycles. “I hope that a full member vote still matters as AED relies solely on board votes. I prefer the NAEDA structure,” said the dealer

Multiple people expressed that the new organization must work for the smaller-location dealer  groups who are in greater need of what an association can provide. The larger operations have a more direct line of communication with OEM exes. The smaller dealers, however, need that collective voice a dealer association provides. 

One dealer asks, “Before we’d consider joining the merged AED, we’d want to know a few things. Will dues be fair to small, single-store dealers after 2027? Will small dealers, Canadian dealers and ag/shortline dealers have a real voice on the board? Will a small shop like ours still matter in a larger, U.S.-based organization that’s mostly construction dealers?”

Dealers want — and deserve — transparency. What will dues for 2028 look like? And will those rates be available well before renewal time? Which NAEDA and AED programs are staying, which are being combined and which will go away?

Expectations Going Forward

If the merger is voted in, Colin Hlavinka, VP/director of Sales for Hlvanika Equipment says he expects a stronger organization in the end. What that looks like is more interaction with reps, more advocacy and more training.  

“I expect that because I am sure it will cost more,” he says. “If it is nominal, then the increase is worth it for the larger voice. All in all, I am cautiously optimistic.”

The new organization will need to put the work in to ensure all dealers — ag, OPE, construction, forestry — are represented and their unique concerns and issues are being addressed. While there are similarities among each business, they are all still different and will require attention and advocacy. 

While AED has strong representation in Washington, D.C., the degree of state and provincial level advocacy needed in the ag industry isn’t going away any time soon, dealers tell me, and it will be critical that there continues to be boots on the ground level work continues for ag equipment dealers. The results of the mid-terms flipped party control both on the national level and in a number of states. 

NAEDA has largely been a dealer run organization, while I've been told AED is more staff-led and run . It will be imperative that the new organization listens to what the ag dealers have to say and truly elevates that voice for the betterment of the farm equipment industry.

The groups haven’t always aligned on certain issues in the past, such as on accelerated depreciation, due to AED members’ rental yards. 

Our staff was at the Farm Equipment Manufacturers Assn. and EMDA Joint Convention last week in New Orleans. Committee meeting dialog there showed enthusiasm for working with a combined, larger entity (and the vast number of rooftops that will be presented) and what it could bring for ag as well as the construction markets that many members also supply.

But several of the veterans pointed out the Dealer Model Legislation and buyback tangles of yesteryear that may have been forgotten, which one shortline OEM executive answered is still not entirely in the rear-view mirror. Those kinds of “tangles” will be up against larger war chests than what NAEDA possessed at the time.

Ultimately, the results don’t change anything for Farm Equipment  — we don’t have a dog in the race. As an advocate for the industry, we’re looking out for what’s in dealers’ best interest. 

Dealers — I urge you to vote in favor of the merger. The work doesn’t stop there, though. Demand that the association continues working for you. And most important, get up and get involved and make sure the ag and OPE interests continue to be heard and represented. You, and your elected leadership, have the wheel …