Deere and the right to repair
09/01/23 01:59
My parents’ first business was aviation. They owned and operated a fixed base operation in Big Timber, Montana. My father managed the airport in addition to flying charter, air ambulance, crop spraying, search and rescue, fire patrol, game count, and other aviation services. They also sold airplanes, gave instruction to new pilots, and performed annual inspections and repairs. My father was certified as an airframe and power plant mechanic, and inspector.
He also was an entrepreneur. So, in the late 1950’s, when he was stricken with spinal meningitis, he expanded his business by purchasing a John Deere dealership, to which he added a feed warehouse and other farm and ranch services. He sold his Deere franchise in the early 1980’s after 25 years of operating that business.
He used to say, “We sell parts and service to support sales.” He believed that the parts business and the repair shop should run as close to possible on a break-even basis to provide good jobs to the workers and support the physical facility, but also to provide service to customers at the lowest possible prices. His parts and repair businesses gained him a lot of customers for the sale of new and used equipment. In the early days of his operation, the company, John Deere, supported that kind of thinking. In 1960, John Deere released a new line of tractors with more powerful engines, new appearance, and expanded features. The “New Generation” tractors were popular and sold well. For two years, from 1963 to 1965, John Deere made and sold its largest two-wheel drive tractor, the 5010. It was the first two-wheel drive tractor to boast over 100 horsepower. That number seems small compared with the horsepower ratings of modern equipment, but at the time, it was a real breakthrough. Individual tractors were tested at over 125 PTO horsepower. There was, however, a serious problem. The 5010 engines had a design flaw that resulted in early failure of the engines. Ready to release the even more powerful 5020 tractor, Deere made a decision that paid off big time for the company in the long run. They honored and in some cases even extended the factory warranties of the 5010 tractors. Many of them received new, more powerful engines designed for the 5020 tractor at minimal cost to the owners.
The 5010 cemented customer loyalty. It also contributed to the success of my father’s business. For a decade from the mid 1960’s to 1970’s our company sold a lot of new John Deere equipment. it earned a lot of repeat business.
That was a long time ago and things have changed. Farm equipment has become outrageously powerful and capable. It has also become outrageously complex and expensive. In addition to tractors and other equipment, John Deere has developed computers and software to monitor maintenance and improve equipment efficiency. They sell a driverless tractor that uses GPS technology to perform vital farm functions including planting. Along the way, they have become more and more secretive about how their equipment is manufactured and repaired. Long gone are the days of the old two cylinder John Deere tractors that were deemed to be the lowest cost of ownership because of the ease of repair. Farmers were once supported in making field repairs, including engine overhauls. No more. John Deere warranties now specify that certain repairs can only be made by authorized dealers. They have refused to share repair manuals and specialized tools with farmers and independent repair shops.
Yesterday, however, Deere & Co. signed a memorandum of understanding with the American Farm Bureau Federation that may be the beginning of returning to some of its roots of supporting farmers. Deere now claims to be the world’s largest manufacturer of farm equipment and now claims to be committed to ensuring farmers have the resources to diagnose, maintain and repair their equipment.
The struggle to get to yesterday’s agreement has been long and hard. Farmers have felt that Deere’s secrecy and insistence upon the use of authorized shops have driven up the cost of farming. They are frustrated that they are unable to obtain information and parts to make repairs on the equipment they own on their own farms.
Like modern equipment, the issues in the “right to repair” conflict are complex. Deere & Co. are worried that proprietary information might be gained by competitors. They are also concerned that independent shops and farmers might disable emissions control systems and increase power on engines that have been intentionally de-rated to extend the life of the equipment. That kind of “hack repairing” is common with diesel pickup trucks and Deere wants to avoid such self-repair practices on their equipment. They want it to perform as manufactured. Secrecy, however, has impeded everyday farmers from being able to make simple field repairs and driven up the cost of operation of the equipment.
Deere isn’t the only company to face such challenges. A year ago, Apple Computer announced a “self-service repair” plan to give customers access to information and parts to replace batteries and make other repairs. And other manufactures of farm machinery face similar problems with giving farmers access to proprietary information, tools, and potentially lower cost and lower quality after-market parts.
Yesterday’s memorandum of understanding doesn’t solve all of the problems with modern farm equipment, but perhaps it is a step in the right direction. Perhaps John Deere can remember its earlier commitment to producing tractors that keep the total cost of ownership in mind. Maybe it can return to its former commitments to keeping equipment serviceable for long periods of time.
When my father purchased his John Deere dealership, his first sale of a tractor was a used John Deere Model D, manufactured in the late 1940s. He was proud to tell the story that when he sold his dealership that tractor was still working in the field. In the 25 years of his dealership, he owned and resold that tractor two more times, and his shop kept it running and working for each owner. We cannot go back to the way things used to be, but I hope the days of that kind of long-lasting quality are not forever gone.
He also was an entrepreneur. So, in the late 1950’s, when he was stricken with spinal meningitis, he expanded his business by purchasing a John Deere dealership, to which he added a feed warehouse and other farm and ranch services. He sold his Deere franchise in the early 1980’s after 25 years of operating that business.
He used to say, “We sell parts and service to support sales.” He believed that the parts business and the repair shop should run as close to possible on a break-even basis to provide good jobs to the workers and support the physical facility, but also to provide service to customers at the lowest possible prices. His parts and repair businesses gained him a lot of customers for the sale of new and used equipment. In the early days of his operation, the company, John Deere, supported that kind of thinking. In 1960, John Deere released a new line of tractors with more powerful engines, new appearance, and expanded features. The “New Generation” tractors were popular and sold well. For two years, from 1963 to 1965, John Deere made and sold its largest two-wheel drive tractor, the 5010. It was the first two-wheel drive tractor to boast over 100 horsepower. That number seems small compared with the horsepower ratings of modern equipment, but at the time, it was a real breakthrough. Individual tractors were tested at over 125 PTO horsepower. There was, however, a serious problem. The 5010 engines had a design flaw that resulted in early failure of the engines. Ready to release the even more powerful 5020 tractor, Deere made a decision that paid off big time for the company in the long run. They honored and in some cases even extended the factory warranties of the 5010 tractors. Many of them received new, more powerful engines designed for the 5020 tractor at minimal cost to the owners.
The 5010 cemented customer loyalty. It also contributed to the success of my father’s business. For a decade from the mid 1960’s to 1970’s our company sold a lot of new John Deere equipment. it earned a lot of repeat business.
That was a long time ago and things have changed. Farm equipment has become outrageously powerful and capable. It has also become outrageously complex and expensive. In addition to tractors and other equipment, John Deere has developed computers and software to monitor maintenance and improve equipment efficiency. They sell a driverless tractor that uses GPS technology to perform vital farm functions including planting. Along the way, they have become more and more secretive about how their equipment is manufactured and repaired. Long gone are the days of the old two cylinder John Deere tractors that were deemed to be the lowest cost of ownership because of the ease of repair. Farmers were once supported in making field repairs, including engine overhauls. No more. John Deere warranties now specify that certain repairs can only be made by authorized dealers. They have refused to share repair manuals and specialized tools with farmers and independent repair shops.
Yesterday, however, Deere & Co. signed a memorandum of understanding with the American Farm Bureau Federation that may be the beginning of returning to some of its roots of supporting farmers. Deere now claims to be the world’s largest manufacturer of farm equipment and now claims to be committed to ensuring farmers have the resources to diagnose, maintain and repair their equipment.
The struggle to get to yesterday’s agreement has been long and hard. Farmers have felt that Deere’s secrecy and insistence upon the use of authorized shops have driven up the cost of farming. They are frustrated that they are unable to obtain information and parts to make repairs on the equipment they own on their own farms.
Like modern equipment, the issues in the “right to repair” conflict are complex. Deere & Co. are worried that proprietary information might be gained by competitors. They are also concerned that independent shops and farmers might disable emissions control systems and increase power on engines that have been intentionally de-rated to extend the life of the equipment. That kind of “hack repairing” is common with diesel pickup trucks and Deere wants to avoid such self-repair practices on their equipment. They want it to perform as manufactured. Secrecy, however, has impeded everyday farmers from being able to make simple field repairs and driven up the cost of operation of the equipment.
Deere isn’t the only company to face such challenges. A year ago, Apple Computer announced a “self-service repair” plan to give customers access to information and parts to replace batteries and make other repairs. And other manufactures of farm machinery face similar problems with giving farmers access to proprietary information, tools, and potentially lower cost and lower quality after-market parts.
Yesterday’s memorandum of understanding doesn’t solve all of the problems with modern farm equipment, but perhaps it is a step in the right direction. Perhaps John Deere can remember its earlier commitment to producing tractors that keep the total cost of ownership in mind. Maybe it can return to its former commitments to keeping equipment serviceable for long periods of time.
When my father purchased his John Deere dealership, his first sale of a tractor was a used John Deere Model D, manufactured in the late 1940s. He was proud to tell the story that when he sold his dealership that tractor was still working in the field. In the 25 years of his dealership, he owned and resold that tractor two more times, and his shop kept it running and working for each owner. We cannot go back to the way things used to be, but I hope the days of that kind of long-lasting quality are not forever gone.
