Deere invests billions in self-driving tractors
American Deere & Co., the world's largest manufacturer of agricultural machinery and equipment, is investing several billion dollars in the development of self-driving tractors that can independently carry out arable work, as well as sprayers used to control weeds.
The company announced that it intends to enter the agricultural software market to make its work more efficient. This will speed up the work of farmers and may be more productive than human labor, according to Deere.
Deere CEO John May predicts that by the end of this decade, commissions from the use of software developed by the company will be 10% of Deere's annual revenue.
Deere's machinery and equipment competitors CNH Industrial NV and Agco Corp., agricultural concerns Bayer AG and Corteva Inc., and venture capitalists have invested several billion dollars in total to purchase and develop systems to predict crop quantities and reduce farmers' costs .
Some startups have yet to make a breakthrough in the agricultural market, and large companies have not yet profited from investments in technology, writes The Wall Street Journal, citing analysts.
The use of subscription software that Deere plans to offer and that is common in other areas has not yet reached the agricultural industry.
Deere posted a weaker-than-market net profit increase in the third financial quarter, after which it worsened its full-year forecast.