AGCO and Trimble finalize joint venture deal

AGCO has acquired a majority stake in Trimble's precision agriculture business, kicking off the joint venture under the name PTx Trimble. 

PTx Trimble is intended to take this portfolio and accelerate AGCO’s pace of innovation in technology like guidance, autonomy, precision spraying, connected farming, data management, and sustainability. The company is also focused on developing open technologies so farmers using a broad range tractor and implement brands can access the upgrades.

"Farmers worldwide need technologies that support them to be more productive and profitable while minimizing the environmental impact of their operations," says Eric Hansotia, chairman, president and CEO for AGCO. "PTx Trimble will provide farmers greater access to next-generation precision ag tools, no matter what brands of tractors and implements they operate."

Developing automation

In an interview with Successful Farming in 2022, Hansotia said AGCO has ”a list of about 150 functions we're working our way through to make it easier on the operator by having the machine sense when the conditions are changing with onboard calculations, and take control when the operator decides to put it in autopilot mode.” 

Since then, AGCO has increased the number of functions in development, says Seth Crawford, senior vice president and general manager of precision ag and digital at AGCO.

“It’s the never ending list — 150 is pretty short,” Crawford says. “As we add more capabilities, we will want to sense and control more of these capabilities. I think the biggest thing we're getting into now is the camera technology — we're going to want to look at them remotely. If a machine stops, we want to look at those cameras remotely and be able to answer the question, ‘Can I go, or do I have to stop and have somebody come do something?’”

The number of challenges only grow as the company takes the technology to different farming operations across the globe. AGCO is excited about collaborating with Bilberry, a selective spraying technology company Trimble acquired in 2022, according to Crawford.

“[Bilberry] had significant exposure in more of the broad anchor crops in Australia, and in Europe,” Crawford says. “We're excited to bring that together. With Precision Planting, we've had a lot more focus on North America in the farmer segment and row crops. We believe this is going to be a really nice compliment.”

AGCO acquired an 85% stake in Trimble's agriculture business, with Trimble retaining a 15% stake. AGCO financed the transaction through $1.1 billion in recently issued senior unsecured notes, a $500 million term loan facility, other borrowings, and cash on hand.