How Smart Upgrades Are Reshaping U.S. Farming

Major equipment makers push smart upgrades that help farmers cut costs and stay resilient

20 Jan 2025

A gradual shift in US agriculture is prompting leading equipment makers to focus on technology upgrades rather than new machinery, as growers face rising costs and tighter labour supply. John Deere and Kubota are introducing retrofit systems and more flexible financing to help farmers modernise without replacing existing fleets.

John Deere has expanded its range of kits that add semi-autonomous functions to older tractors, including real-time data tools and predictive maintenance features. The company argues that such add-ons allow farmers to improve efficiency while retaining equipment already adapted to their operations.

Kubota has released its Agri Concept 2.0, an electric and self-driving tractor, and has said it is considering lease or subscription models that could link payments to seasonal returns. Pricing has not been disclosed.

The moves come as interest in automation continues to rise across the sector. Nearly half of US farm equipment dealers expect to invest in autonomous technology within two years, up from about one-third a year earlier, according to industry group Precision Farming Dealer.

"There's no question that affordability is front and center," said a senior analyst at AgTech Insight. "But it's also about timing. These companies are meeting farmers where they are, delivering smarter tools at the exact moment they're most needed."

Analysts note that the emphasis on lower-cost upgrades may slow the pace of more ambitious innovation, since manufacturers are directing resources towards add-on systems rather than full redesigns. But the current market conditions, shaped by volatile food prices and rising consumer interest in sustainable production, favour incremental improvements that can be deployed quickly.

Companies also face pressure to demonstrate clear returns on investment. Many farms are operating with narrow margins, increasing demand for tools that allow automation without large upfront costs. Dealers report that retrofit technologies, which can be installed on widely used mid-sized tractors, are gaining particular traction.

The convergence of technology, farm economics and changing consumer preferences is likely to shape investment patterns in the coming years. For now, manufacturers are signalling that practical upgrades, rather than new platforms, will define the next phase of machinery development in US agriculture.