One of the barriers to entry in the commercial agriculture sector is the perception that the mechanized equipment needed to boost yields and profitability can be prohibitively expensive.
However, John Deere is shattering that belief with a new price campaign that enables both new-age and smaller farmers to acquire a brand new tractor for roughly the cost of a second-hand bakkie. In addition, for those individuals not being able to purchase a tractor, John Deere has the solution to assist these individuals get access to mechanisation through its S.M.A.R.T. program.
In an effort to break down the barriers, the global equipment giant is offering customers the opportunity to purchase a brand new 5055E utility tractor for R229,999 (Sh1.57m) including VAT while the more powerful 5075E model can be purchased for a VAT inclusive price of R323,150 (Sh2.22m) John Deere Financial, the company’s financing arm, has also structured a financing solution that allows farmers to purchase these 55hp and 75hp models for just R3,999 (Sh27,431) or R5,460 (Sh37454) per month respectively.
“Although John Deere has traditionally been viewed as an aspirational and exclusive brand we actually have a very diverse customer base and product portfolio,” says Stephan Nel, John Deere’s Marketing Manager for Sub-Saharan Africa.
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“We’ve recently refreshed our position in Sub-Saharan Africa to support our vision of driving Africa’s green revolution through a journey of collective power in the Ag space. Our messaging is that John Deere is for all farmers, big and small, and we believe that though the power of co-creating and collaborating, our farmers can achieve their greatest potential by overcoming the limitations they face”.
With a 135-strong dealer network across Africa, John Deere is positioning itself for significant growth on the continent over the next three to five years where it anticipates greater opportunities from small and new age farmers working on small plots of land. John Deere has already pioneered an innovative contractor model in East Africa, which encourages farmers who acquire its tractors to service neighbouring farms by contracting out their mechanization services to surrounding communities.
“In addition, we’ve signed a collaboration agreement with Hello Tractor to enable anyone to book, either directly or through an agent, the services of a small contractor to work their fields, allowing them to benefit from increased yields and productivity.”
John Deere’s pricing specials on its 5055E and 5075E utility tractors run until 30 June 2019, or while stocks last.