If I was a farmer and wanted a low-tech tractor that would be reliable into the future, why would I gamble on a startup when I could buy a Kubota tractor from a company that has been in business for 136 years, with an established dealer and parts network? I would certainly opt for the Kubota.
I’m not a farmer, but sometimes I sell generators. Even today, some specs only allow CAT and Cummins, even though Generac and Kohler have been around for decades and are perfectly good options, they haven’t been around as long as CAT and Cummins.
When purchasing capital equipment, some customers want to buy from a company with some longevity instead of a random startup, even if it costs more.
I’m always highly skeptical of startups in mature industries like farming (~10,000 years old, or hundreds of years for mechanized agriculture) with many established players already operating. I saw an article in the last year or two about a small directional boring machine from a startup company that claimed to be advancing the industry, but multiple manufacturers like Ditch Witch already manufacture and sell the exact same piece of equipment, they’re just not claiming to be revolutionary to attract investor capital.
What early demand are you seeing, exactly? The article does indicate that they plan to ramp up production in 2026, but no mention of actual sales. It is quite possible that they are increasing production thinking that they need to roll them out to dealer lots to gain any traction.
In fact, their TractorHouse profile shows that they are still struggling to sell last year's models. If there was demand, why hasn't that demand already gobbled up the stock? "I guess it would be cool to own one if it was given to me for free" isn't demand.
They need to swing the pendulum back, the current problem is that there is now a whole generation about to take over from the previous and the new gen has never had to use a non-John Deere a tractor. If they could evangelize their product as the “smarter farmer that doesn’t need all that tech” then they might have success.
The farmer who doesn't want or need tech already buys from the likes of Versatile, Kubota, or maybe even Massey Ferguson if more towards the middle of the road. "Low tech" is already a serviced market. That's not to say there isn't room for another competitor, but there isn't much indication that Ursa is becoming one. When you can't even sell the product you produced last year... The bit in the article about them not wanting to really scale up is telling.
It is not like John Deere actually has a monopoly. There is just as much CNH (CaseIH, New Holland) seen out in the fields, and even when you want all the bells and whistles, Fendt is rapidly becoming understood to be the true king of tech. What John Deere does have going for it is that they generally do better than everyone else at keeping parts in stock where the parts are needed; local to the farmer. Ironically, repairability is where John Deere finds the win at the end of the day.
If I was a farmer and wanted a low-tech tractor that would be reliable into the future, why would I gamble on a startup when I could buy a Kubota tractor from a company that has been in business for 136 years, with an established dealer and parts network? I would certainly opt for the Kubota.
I’m not a farmer, but sometimes I sell generators. Even today, some specs only allow CAT and Cummins, even though Generac and Kohler have been around for decades and are perfectly good options, they haven’t been around as long as CAT and Cummins.
When purchasing capital equipment, some customers want to buy from a company with some longevity instead of a random startup, even if it costs more.
I’m always highly skeptical of startups in mature industries like farming (~10,000 years old, or hundreds of years for mechanized agriculture) with many established players already operating. I saw an article in the last year or two about a small directional boring machine from a startup company that claimed to be advancing the industry, but multiple manufacturers like Ditch Witch already manufacture and sell the exact same piece of equipment, they’re just not claiming to be revolutionary to attract investor capital.
What early demand are you seeing, exactly? The article does indicate that they plan to ramp up production in 2026, but no mention of actual sales. It is quite possible that they are increasing production thinking that they need to roll them out to dealer lots to gain any traction.
In fact, their TractorHouse profile shows that they are still struggling to sell last year's models. If there was demand, why hasn't that demand already gobbled up the stock? "I guess it would be cool to own one if it was given to me for free" isn't demand.
They need to swing the pendulum back, the current problem is that there is now a whole generation about to take over from the previous and the new gen has never had to use a non-John Deere a tractor. If they could evangelize their product as the “smarter farmer that doesn’t need all that tech” then they might have success.
The problem with your argument is that the smarter farmer does indeed need all that tech if they're expecting high productivity.
You should know that there are alternatives to green machines; Case, Massey Ferguson, Fendt etc.
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The farmer who doesn't want or need tech already buys from the likes of Versatile, Kubota, or maybe even Massey Ferguson if more towards the middle of the road. "Low tech" is already a serviced market. That's not to say there isn't room for another competitor, but there isn't much indication that Ursa is becoming one. When you can't even sell the product you produced last year... The bit in the article about them not wanting to really scale up is telling.
It is not like John Deere actually has a monopoly. There is just as much CNH (CaseIH, New Holland) seen out in the fields, and even when you want all the bells and whistles, Fendt is rapidly becoming understood to be the true king of tech. What John Deere does have going for it is that they generally do better than everyone else at keeping parts in stock where the parts are needed; local to the farmer. Ironically, repairability is where John Deere finds the win at the end of the day.