BY JOHN GREIG - ONTARIO FARMERNorth American tractor companies discover what the imports know - there's a market at the low-end.
Some of the biggest buzz around the leading auto shows in the past two years has been the arrival of the vanguard of the Chinese automakers.
They aren't selling products in North America yet, but expect to be in the next few years.
Anyone attending a farm show recently knows that theChinese farm equipment has already arrived.
JDB Equipment had a solid presence at the recent Canadian International Farm Equipment Show, with a lineup of tractors and equipment. It was the sticker prices that attracted farmers. The Foton and Jinma models are priced substantially below the traditional big players in the Canadian tractor market. The Chinese tractors are following the introduction in the past five years of numerous tractors imported from Asia.The imported tractors don't have all of the fancy add-ons of the upper level tractors, but for anyone looking for basics in the tractor world, they have become an option.
The tractor market has become strangely crowded in the past few years, and most of the entries have been in the smaller end. Think Montana from the U.S., or Yanmar from India, or the JDB Equipment people and Kioti from South Korea. Kubota was an early entry in this market.
So why have smaller tractor companies found a niche in simpler technology? The answer lies in the fact that the more complex the technology, the more expensive the technology. Tractors, at their simplest, perform an uncomplicated task, they haul metal through dirt with precision enough to plant a seed.
But over the years, as farm management has become more complex and efficiency necessary, tractors have become more sophisticated than automobiles.
Agriculture has led all other sectors of the Canadian economy in productivity growth over the past 20 years and a lot of that has to do with tractor technology. Think about what you were driving 20 years ago. An operator can efficiently and comfortably cover an amazing number of acres, all the while gathering management data. But, these days, not everyone needs that.
Internal combustion engines are not complicated. Light a spark, provide some fuel, harness the power of the explosion. It's a lot more difficult to figure out what's doing what on the large Massey tractor at my parent's farm, than it is to kick into gear my aging gas-fueled Massey 501 use to blow snow.
That Massey 50 is remarkably faithful to start in any cold the climate throws against it. That's likely because of the gas engine. I couldn't help contrasting my old Massey with this weekend helping my dad haul the non-starting modern loader tractor into the shed with the larger tractor which doesn't like switching between low and high until the hydraulics warm up.
There's something to be said for the cost and reliability of simple systems.
Take a look at the tractor ads in this publication. Increasingly the big players in the, tractor market aren't hawking the 150 horsepower machines with GPS, autosteer and power to burn. The big companies too are finding demand and profit margin in the small tractors.
Perhaps this is a manifestation of the growing rural estate and small farm dweller market. People moving to the country are likely a major driver of the increase in the small tractor market.
But I expect it is also a natural evolution of tractor technology to where there are few who can afford the top end tractors. That leaves a lot of other farmers to serve and the market has figured that out.
