Top Farmer July, 10th 2012 Matt Rushing

Top Farmer 

July, 10 th 2012 

Matt Rushing 

© 2012 AGCO Corporation. All rights reserved.

2 

Agenda 

• Company 

• AG Machine Development Drivers 

• New Technology and Innovations

3 

AGCO Today 

• Leading Pure Play global 

ag equipment and 

infrastructure company 

• Full range of products 

• Portfolio of Brands to meet 

different segments of the 

market 

• Well-positioned in growing 

markets 

• 3100 independent dealers 

in over 140 countries 

• 17,000+ employees in over 

20 countries 

South 

America 

21% 

2011 Revenues $8.8B 

EAME 

54% 

North 

America 

20% 

ROW 

5% 

© 2012 AGCO Corporation All rights reserved.

4 

AGCO Key Messages 

We know agriculture. 

We support your farm. 

We help feed the world. 


5 

Global Presence 


6 

Agenda 

• Company 


• New Technology and Innovations 


Agriculture Machine Development - Drivers 

• For the Agricultural segment, many new market challenges 

drive our focus. 

� Global Demands for improved Fuel Economy 

� According to a recent Food and Agricultural Policy 

Research Institute (FAPRI) report, oil prices are expected 

to continue to rise though 2025. 

� Other farm inputs continue to increase in price and demand. 

� Seed 

� Fertilizer 

� Chemicals 

� Labor 

� We are focused on helping farmers monitor and control these 

costs as well. 

� Commodity prices are decreasing or stabilizing, but no 

dramatic increases forecasted through 2025. (Source FAPRI 

Report 2011) 


• By focusing on technologies that reduce fuel consumption by 25-30% (example – eRoGator)…. 

Annual Usage* 

Projected Annual Fuel Savings @ 

$3.50/gal 

1000 $15,733 

800 $12,845 

500 $8,260 

• BUT…..By also focusing on technologies that improve yield, we can also improve your profitability….. 

Yield Improvement (1000 a) 

Corn @ $5.57 

-164 Bu/a 

Soybeans @ 

$13.73 – 43 Bu/a 

Wheat @ $6.47 

– 45 Bu/a 

1% $9,135 $5,904 $2,912 

2% $18,270 $11,808 $5,823 

3% $27,404 $17,712 $8,735 

4% $36,539 $23,616 $11,646 

5% $45,674 $29,520 $14,558 


Agriculture Machine Development - Drivers 

• This makes us conscious of the fact that 

growers like you will look for cost effective 

solutions that drive down input costs and 

minimize cost of ownership. 

� Whole vehicle fluid economy efficiency and 

improvements. 

� Technology driven productivity and yield 

enhancing tools. 

� Cost of ownership and downtime. 

� Impacts to Service Intervals 

� Availability of service and support. 

� Specifically new emissions control 

devices and electronics. 


10 

Agenda 

• Company 


• New Technology and Innovations 


Engines - New Technology and Innovations 

• The future of diesel engines is impacted by many 

factors. 

– Legislation Requirments 

– Power and Torque Requirements 

– Efficency Requirments (fuel, fluid, etc...) 

– New Technology and Innovations 

• Diesel Hybrids 

• Alternative Fuels 

• Electric Power and Storage Improvments 

• But...... 

– It is clear that Diesel Power will be the choice 

power source for Agriculture for many years to 

come. 


Legislation - New Technology and Innovations 

• The next round of emission legislation is currently 

projected for 2018 – 2020 

– It is projected that there will be no significant reduction 

of NOx or PM mass after Tier IV Final (Stage 4) 

– Particulate count could be limited. 

– CO2 Emissions will be limited and managed with reduced 

fuel consumption. 

– Full Onboard Diagnosis needs to be in-use and compliant 

– “Black Carbon“ – PM2.5 may be regulated. 

– Fuel Quality Standards will need to be improved 

• Drift, As Applied and other Precision Technology 

Improved and Required 

– Recordkeeping will be required more and reported real 

time. 

• LRC (Lesser Regulated Countries) will start to “Catch 

Up“ 

• Need to ensure harmonization 


Power and Torque - New Technology and Innovations 

• Driven by emissions legislation and associated 

higher costs for engine and aftertreatment 

technology, 4-cylinder engines in the near future 

will increasingly replace 6- cylinder engines in the 

120 to 200 hp 

• Power density – More power, smaller package. 

• Acceptable power – using biofuel 

• Machinery is not finished growing 

– 800+ HP will be required 

– Higher Torque will be needed to drive larger 

implements 


Efficency - New Technology and Innovations 

• “Powertrain“ Development 

– Developing for engine and transaxle optimization. 

• Optimized SCR Concepts for optimizing fluid 

consumption. 

• Advanced electronics and control concepts will 

improve. 

• Continued optimization of the combustion process. 

• Reduced system components and complexity 

– Smaller designs. 

– More efficient packaging. 

– Lower cost components 

• Less precious metals. 



• Alternative Power 

• Pure Electric Power – Furthest out 

– Battery technololgy must improve – it will. 

– Size of components must decrease in size – they 

will. 

• Diesel Hybrids – Underway 

– Electrification of auxilieries and parasitics 

• Steering system, Oil pumps, fan, Coolant pump, Air 

compressor, Air Conditioning Compressor, 

Transmission, etc... 

• Power on-demand operation 

• increases life-time 

• Improved efficiency 

• Optimized thermomanagement with power on-demand 

pumps and fans 

• Optimized Electric Implement Drives improving 

“Systems Operation“ 



• But Diesel is still here for a while yet..... 


Electronics - New Technology and Innovations 

• “Iron“ is no longer the desirable – Farmers want “Smart Iron“ 

– Electronic Technology makes it “Smart“ 

– But it has to be reliable and robust 

– It must be supported 

– Must be operatable by anyone. 

• What will be the technology? 

– Improved Machine Control 

• Enhanced Guidance (Implement Guides Tractor) 

• True “Systems“ 

– Tractor and Implement function as one. 

• Supervised Autonomy – Push a button and it works. 

• Full Autonomy – longer term – but will come. 

– Communications Technology 

• Smart Telematics 

• Smart Connections with Service Providers 

• Smart Connections with Farm Management Systems 

– What can “Connected“ machines allow us to do? 


Connections - New Technology and Innovations 

• Agronomy and Machine Information Gathering-Vision 

•Machine to Machine Data 

•Remote Diagnostics 

•As Applied Data 

•Yield Data 

•Machine Status 

•Moisture and Level Status 

•Location Data 


Connections - New Technology and Innovations 

•Remote Repair 

•Prescription Data 

•M2M Info 

•Turn On/Off 

•Remote Machine Adjustments 

•Cloud Data 


Asset and Data Management - New Technology and Innovations 

Bin 2 Full – 

Fill Bin 3 – 

16% 

Moisture on 

Bin 1 

Field 6 Rate 

Data 

Inbound 

Combine 3 

Needs to 

Unload – 

Location Field 1 

------- ------- 

--------- --------- 

------------------ 

------------------ 

--------------------------- 

--------------------------- 

---------------------------------- 

---------------------------------- 

Tractor 2 Can 

Unload 

Combine 3 – 

Need Fuel – 

Location Field 4 

Fuel to 

Tractor 2 

Location 

Field 4 

----- ----- 

Grain Truck 

5 – Fill Bin 3 


Apps - New Technology and Innovations 

• Location Services Apps 

– All smart phones and tablets have a GPS 

embedded in the hardware, this makes field 

mapping simple, portable, and helpful when 

running a farm. 

• Operator Apps 

– Simple Easy way for the owner or operator to 

learn to interact with the machine. 

– Calculators for quick access to critical info. 

– Online chemical, fertilizer and seed data. 

• Remote Monitoring Apps 

– “Location Awareness” Location awareness is the 

ability to locate items of interest using GPS 

coordinates. 

– Real time locating 

– Positioning support 

– Business and consumer services 

• Real time access to market data, news, blogs, 

weather, etc… and so much more!!! 


Sensors - New Technology and Innovations 

• Optimized Sensors and Sensor Fusion 

• Enhanced Protien, Vitamin and Nutrient 

Sensors 

• Enhanced Yeild, Mositure and Mass Sensors 

• Temprature and Weather Sensors 

• Enhanced Wear Sensors 

• Smart sensors that read labels, detect 

suroundings? 

– Already there..... 

• Enhanced Optical Sensors 

– Used for guidance, measurment, more... 

– What do they create? 

• A central nervous system for the machine. 

• More precice control 

• Improved communication capabilities. 


Applicators and Seeding- New Technology and Innovations 

• Focus on the 5 “R’s” 

– Right source 

– Right rate 

– Right time 

– Right place 

– Recordkeeping 

• Specific Technologies that will drive 

this: 

– Rate Control Technology 

– Incorporation of Weather Data 

– Droplet and Drift Control Technology 

– Precision Steering and Section Control 

– M2M and M2O Connectivity 


24 

Thank You 


25 

Engage with AGCO Online 

� 

� 

� 

� 

� 

Website: www.AGCOcorp.com 

Blog: blog.AGCOcorp.com 

Facebook: www.facebook.com/AGCOcorp 

YouTube: www.youtube.com/AGCOcorp 

Twitter: www.twitter.com/AGCOcorp

Top Farmer July, 10th 2012 Matt Rushing

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