Recent research by the Conservation Tillage Information Center shows American farmers are beginning to use cover crops in their rotations to conserve moisture, boost yields of subsequent cash crops, fight erosion and add organic matter to their farm fields. With estimates predicting 20 million acres of U.S. cropland to be seeded to cover crops by 2020, the trend amounts to a significant new agronomic enterprise in many areas, even if cover crops are not considered a cash crop.

While last month’s column focused on some of the ups and downs that afflicted the agricultural equipment industry over the past 40 years, this column will take a look at what one can expect over the next several years. But first, it should be apparent after reading the previous column, that one of the primary drivers for the demise of manufacturers during the aforementioned time period was their feckless hiring of top management that were either devoid of pertinent and relevant experience, or their background was from the financial side of the business. Concerning the latter, when that is the case, management will generally save themselves into bankruptcy rather than marketing themselves into prosperity.

Is there room for more competition in the North American market?

Recent telephone calls with dealers and their written comments that have accompanied the various surveys we conduct between Farm Equipment and Ag Equipment Intelligence, are really quite revealing. Despite the current situation of excess used inventory and farmers slowing the spending on new equipment, dealers say they’re getting pushed to order more new product than they can sell — profitably.

In the 11 years since Farm Equipment has conducted its annual Dealer Business Outlook & Trends survey, only one issue has made it into the Top 5 biggest concerns each and every year. Want to guess what it is?

“The future of farm equipment distribution in North America is being reshaped in ways and by means that many dealers could not have imagined a decade ago.”

While the use of cover crops is not new, interest in the benefits they can produce is growing. U.S. farmers are on track to plant cover crops in their normal rotations to the tune of more than 20 million acres by 2020. The interest in keeping something growing on fields year round is rooted in farmers’ search for increased yields, better management of natural rainfall, reduced soil erosion, boosting soil organic matter and better overall “soil health.”

Welcome to the 2016 SOURCEBOOK. We’d be remiss here if we didn’t acknowledge the year-round effort of Directory Manager Donna Schwierske in compiling this year’s annual SOURCEBOOK for you, with even more companies, products and brand listings than last year. Despite this year’s challenges, the participation shows the keen interest of a supply base still focused on connecting with you, the foot soldiers of our industry’s innovations.

Nearly 40 years ago, I was hired by a consulting firm whose major client was International Harvester, the once venerable leader in agricultural equipment sales. This consulting firm had designed the XL program for IH that recognized and rewarded their dealer organization for implementing a series of sensible, yet stringent, operational and financial standards.

It’s all about people. We hear this phrase more and more as the scale of farming and farm equipment dealerships grow. We also hear it from successful dealers who must drive change in their businesses to keep pace with changes in technology, demographics and competition.