The Dealer in Ag: A Natural Role, Evolving with Technology
This article explores the evolving role of agricultural dealers in a technologically disruptive landscape. It examines how dealers are becoming digital facilitators, harnessing the potential of AI, and cultivating a growth mindset to succeed in this dynamic environment. The changing landscape necessitates adapting to new technologies and opportunities.
Who is Alejo, Our Ag Navigator
Alejo is a seasoned business leader with extensive experience in the agricultural sector, having held key roles at Monsanto and Bayer across Latam. His deep understanding of the row crops market and stakeholders in the region has been pivotal in helping startups to understand market needs, improve their business approach, and develop their teams. As an advisor and leadership coach, he bridges traditional agriculture with the digital landscape, fostering collaboration and developing solutions to tackle industry challenges and drive sustainable growth.
The Dealer's Traditional Role and the Changing Landscape
Dealers in agriculture have always been the bridge between large companies and producers. They're the ones who know what each farmer is doing, how they're managing risk, and the financial moves they're making. This deep understanding has always been a strong suit of Dealers, but the game is changing.
With easier access to information, producers have more tools than ever before to make informed decisions. They can get direct updates from big companies, find insights on social media, or learn from specialized websites and webinars. This shift has naturally reduced the need for the Dealer as the sole source of information.
Digitalisation: A New Opportunity to Remain Relevant
While the digital transformation of agriculture offers improved accuracy and operational efficiency, it has also introduced a level of complexity that many farmers struggle to navigate. At first, it was all about monitoring software and satellite imagery. Then came tools for field zoning, machinery management and data analysis. Lately, we are seeing solutions for certifying sustainable practices and measuring carbon footprints. And now, AI-based tools are emerging, promising to simplify complex processes and optimise decision-making in ways we couldn't before.
But here's the thing: it's a lot, and it's coming fast. There is a fragmentation in the tools and a lack of integration that makes it difficult for producers to extract real value. And, to be honest, many farmers don't have the time, scale or confidence to tackle these technologies themselves.
The Dealer as a Digital Facilitator
This is where the Dealer can step back into a pivotal role—not just as a bridge, but as a translator for the digital age. The opportunity is in becoming deeply knowledgeable in these digital tools, and then distributing that expertise to clients, helping them get the most out of what technology offers.
Take AI, for instance. A Dealer who becomes proficient in AI tools for agriculture can guide their clients on how to integrate these solutions effectively. It’s not just about adopting tech for the sake of it; it's about knowing how to leverage these innovations to solve real, on-the-ground problems.
By specializing in certain technologies, a Dealer can add real value across multiple clients—helping them adopt tools that might have seemed out of reach if they had to do it alone.
In this way, Dealers aren't just offering products; they're offering specialized knowledge. They're becoming strategic partners in helping producers adopt and integrate these tools in a way that makes sense. They help simplify what can be a daunting shift, making it accessible and impactful.
Producers can choose their level of involvement—some might want the Dealer to handle everything, while others might want to get their hands dirty and learn alongside the implementation. The point is that the Dealer provides that flexibility, meeting producers where they are and ensuring that adoption is tailored and effective.
AI: The Next Big Opportunity
Artificial Intelligence is undoubtedly the next frontier in agriculture. From optimizing inputs to predicting outcomes, AI has the potential to bring a level of insight that traditional methods just can't match. But it needs someone who understands it well enough to make it work in a real-world context. This is where Dealers can take the lead—being among the first to adopt, learn, and then teach, effectively becoming the go-to partners for making AI practical in the field.
The Asymmetry Advantage: Staying Ahead of the Curve : Shane Thomas, in his UpstreamAg newsletter, put it best: the real competitive edge comes from seeking out asymmetric opportunities—those chances where the upside far outweighs the downside. Asymmetric opportunities often start with a contrarian idea, something that not everyone is willing to bet on. When everyone jumps on the same thing, the value gets diluted. But if you're willing to invest in something before others do, the reward is yours to keep.
The Asymmetry Advantage: Staying Ahead of the Curve
For Dealers, staying ahead means understanding these technologies in a way others don’t. It means investing in capabilities that are unproven, betting on long-term potential, and diving into complex areas that most competitors shy away from. This could be investing in new assets, talent, or infrastructure that others haven't even considered yet. It's not just about being first; it's about being the one who understands how to best apply these tools to real challenges in agriculture.
Think about it like this: if a Dealer invests early in AI capabilities, they’re not just selling a product—they're offering a solution. They're showing farmers how to make their operations more efficient and getting a head start that competitors will struggle to catch up with.
Building Teams with a Growth Mindset
Of course, none of this works without the right team. The first step is building teams that are curious, open to learning, and willing to experiment. These are the people who will drive the change, keep Dealers at the forefront, and turn new opportunities into tangible benefits for producers. That's the real start of this transformation.
Learn more about the AgTech Collective’s expert team, our offer, or simply contact us to tell us about your project!
