John Deere's Transformation: From Tractors to Tech Powerhouse

John Deere is transitioning from a tractor company to a leading tech and AI solutions provider in agriculture, revolutionizing farming practices.

### John Deere's Transformation into a Tech Behemoth and the Implications of Its Advancements in Precision Farming
* 🚜  John Deere has undergone a significant transformation from a traditional tractor manufacturer to a tech company offering **integrated production solutions**, blending software, hardware, and services.
* 🌱  The company's historical significance dates back to the 19th century when it introduced the **self-scouring steel plow** and later popularized **gas-powered tractors**.
* 🛰️  John Deere played a pioneering role in precision farming by developing the Starfire GPS system, which addressed the **inefficiency of overlapping** during field operations.
* 🤖  Deere's recent advancements in AI and machine learning, such as the **See & Spray technology**, have further solidified its position as a **market leader in precision agriculture**.
* 💰  While these innovations promise **increased efficiency** and **reduced environmental impact**, they also come with **significant upfront costs**, making them most viable for **large-scale operations**.
* 🌍  The rise of big tech in farming has led to **accelerated innovation** but has also contributed to the **consolidation of the industry**, with small family farms facing **growing challenges**.
* 🧠  Neural networks, such as those powering Deere's AI technologies, are at the forefront of machine learning and work by **recreating brain-like structures** in a digital environment.
* 👩‍🌾  As tech-driven advancements continue to reshape the agricultural landscape, the traditional image of the family farm is **increasingly becoming a thing of the past**.

If you were in Las Vegas in January 2023, sitting in the audience of the opening keynote of CES—perhaps the most influential tech conference in the world—you likely had one question on your mind: “Why is John Deere here?” After all, they’re the tractor company, right? They make machines that push and pull and move and dig, that’s their thing, right? Well, not according to their CEO, John May. “We’ve quickly become one of the world’s leading robotics and AI companies. Our solutions leverage technology like computer vision, advanced sensing and compute, machine learning, and data analytics.” There’s one key word there: solutions. That’s a word that gets thrown around a lot by companies like Apple “…solution…” “…solution…” “… solution…”; Microsoft “…we provide an end-to-end tooling solution…” “…deceptively simple solution…” “…the best end-to-end solution…”;

Google “…bespoke AI solutions…” “open 
sourcing solutions…” “…a great solution…”.  This linguistic mimicry, their mere attendance 
at an event like CES, it’s all… peculiar for a   tractor company. Unless, does John Deere 
think it’s a tech company? Well… yes,   they do. At least according to themselves, in 
this LinkedIn post, sharing an article entitled   “John Deere: ‘We’re a Technology Company.’”
And that assertion appears increasingly less   absurd. While the company lays off hundreds in 
its manufacturing plants, it’s simultaneously   staffing up its tech divisions. Of fifteen current 
US job listings, twelve are in software, data, or   robotics—just three in manufacturing. The company 
has been going through a metamorphosis from one   that makes machines to one that makes solutions.
Apple, for instance, does not merely make   computers or phones or tablets. They 
make integrated technology solutions.

blending software, hardware, and services into an 
ecosystem that envelops one's digital experience. Correspondingly, John Deere no longer merely 
makes tractors or combines or loaders, but rather integrated production solutions—blending 
software, hardware, and services into an ecosystem that envelops a farmer’s day-to-day experience.
At the extremes, the company appears entirely disconnected from its original form as a 
small Illinois storefront selling shovels and pitchforks. Never could John Deere himself have 
imagined that his company would eventually go on to operate, for instance, a satellite network. 
But waxing nostalgic about humble beginnings would mask what the company now truly is: it’s not 
an endearing family business, it’s not a scrappy underdog, it’s a market-domineering behemoth. It 
has the business of agriculture, especially in America, in a stranglehold. And so might Apple, 
with consumer electronics, but farming is not

something you pick up or put on. It’s not one’s 
digital experience, it’s one's entire experience: it’s your job, it’s where you live, it’s what 
your family does, it’s what your neighbors do, it’s what your descendants do, it is an all 
encompassing way of life whose future is now being dictated by one tractor company that’s decided 
it’s big tech. But John Deere’s power, their influence, their ability to change the course 
of history has been centuries in the making. It started with this—the self-scouring 
steel plow. Plows had existed in some form for millennia—so many millennia, in fact, that we 
can’t even say how old they are—but by the 1800s, they’d been refined and refined into this: a 
single-piece cast-iron plow. These could be pulled by an animal, and would efficiently loosen 
the soil to bring nutrients to the surface before

planting a fresh crop. And these worked great, for 
the time, except for here—the American midwest. The soil of Illinois and its neighbors was thick, 
moist, and rooty, in a fashion that would lead it to clump on the plow, forcing farmers to 
stop every once in a while to clean it off. But John Deere had an idea: he 
would manufacture the same plow, but of polished steel. This cut straight through 
the midwestern ground with far greater ease, and the soil would shed right off rather than clump. 
While he was not the first to invent this concept, he was the first to start manufacturing 
a steel plow en masse, and his production steadily grew into the hundreds per month, 
and a later thousands. This innovation played an instrumental part in spreading agriculture 
across the region, and transformed John Deere from a mere shop into a growing manufacturer.
By the turn of the century, after the company

had passed through the generations of the family,
Deere had become a leading agricultural implements manufacturer, but the industry landscape was
changing beneath them. Like the plow, tractors as a concept, had long existed. Through the 19th
century, it was typically animals like horse or oxen that pulled plows and other implements,
yet around the world, across industries, animal power was being replaced by steam power. Whereas
horse-drawn stagecoaches dominated the past, steam trains were now the dominant form of long-distance
transport, so the logic carried that steam-powered tractors could replace animal power on farms.
And they certainly could, the technology existed, but steam-powered tractors never became ubiquitous
due to their high up-front and operating cost. But with the turn of the century came
gas-powered tractors: cheaper to buy, cheaper to operate. Popularity exploded, and while
Deere was originally reluctant to stray beyond

their agricultural-implement core, they eventually 
realized they had no choice if they wanted to stay relevant. They tried to design their own, 
and it was plenty capable, but it was just not competitive. At about twice the price of that of 
equivalent machines, their tractor never had any shot of commercial success, and then its designer 
died from pneumonia following a week of testing in the wet and cold, so John Deere rather elected to 
just simply buy their top competitor. With that, the Waterloo Gasoline Engine Company was folded 
into John Deere, and over the following years, their tractor, the Waterloo Boy, enjoyed wild 
success. Once again, like with the self-scouring steel plow, Deere didn’t invent the technology, 
but they popularized it—they identified the opportunity, scaled up manufacturing, marketed 
successfully, and helped transform the tractor from a niche, novel technology into the 
solution for moving power on the farm.

Over the decades that followed, the company 
transformed again from primarily an implement 
company into a machine company—offering 
combines and balers and planters and sprayers: 
essentially anything you needed to turn a field 
into a farm. Through much of the 1900s they were 
always a significant, but underdog player in the 
industry until the 60s and 70s when their primary 
competitor, International Harvester, began 
to falter. And with its collapse in the 80s, 
John Deere took a firm lead in 
the industry—becoming the go-to, 
ubiquitous source of agricultural equipment in the 
United States. But then, another monumental shift 
in the field. Like the tractor introduced 
the mechanical era of farming, information 
technology introduced farming to the digital age. 
And again, John Deere had to adjust on the fly. 
This started on June 23, 1995 when Rockwell 
International Corporation, traditionally a US

defense manufacturer unveiled its proprietary 
Vision System—effectively firing the first shot   of the digital farming revolution. It seems 
so simple now, but Rockwell’s Vision System   was poised to usher in a new age of efficiency by 
using defense satellites to pinpoint and track a   tractor from above, which, in turn, would allow 
a farmer to better monitor their field’s yield,   or when it came time to plant, better disperse 
seeds and spray chemicals. Precision farming   had arrived, and while Rockwell was first, 
competitors such as Case Corporation and Agco   Corporation were close on the company’s heels.
So too was Deere, which took it one step further.   To the late-90s American farmer, GPS and precision 
agriculture was a handy tool, but still a finicky,   expensive, and difficult-to-use luxury. 
It helped, but it wasn’t required.  At least, not until Deere made it a practical 
necessity. As they did when developing their

tractor, Deere looked further afield 
for help. This started at Stanford, where the company collaborated with engineers 
to develop an autonomous GPS-controlled tractor. While it worked, it didn’t work well enough 
to take to market. The problem was 1990s GPS just wasn’t accurate or dependable enough. 
So, more partnerships. Now Deere, along with NavCom Technology and NASA’s Jet Propulsion Lab, 
sought to figure out how to create a more reliable positioning system to support not just yield maps 
but autonomous guiding—the former a helpful tool, the latter a potentially revolutionary product. 
While autonomous guiding may have seemed a lofty ambition, its use case was well grounded.
Before the rise of precision farming, farming was, well, remarkably imprecise. Take, for instance, 
actually planting a field. Now, laying down seed is actually a rather complicated process with 
a whole host of decisions to make and factors

to consider from when to seed to how to establish, then plant the field’s headlands and borders. But regardless of such considerations—or what crop one is even planting in the first place—each and every farmer, since the dawn of the tractor, has dealt with one major inefficiency: overlap. In farming, overlapping is practically unavoidable—as a tractor operator threads rows back and forth across their field, it’s nearly impossible for there not to be slivers of field—whether it be where rows meet headlands, or just between rows themselves—where the farmer doesn’t pass over a small section twice. And considering the alternative—what farmers call sparing—this makes sense: if a farmer is to miss a small sliver entirely while drilling, there will, of course be no crops, if they miss it with pesticides or fertilizer, the section’s yield will drop, if they miss it during harvesting, well that’d be an expensive and embarrassing mistake, too.

So farmers overlap. But they try to do so as 
little as possible. Experience helps with this, as   hours in the chair, along with a long-established 
sense of pride in maintaining straight rows,   keeps overlap down. So too do generally normal, 
rectangular fields, should a farmer have such a   luxury. And then there are tricks: spray foams 
to mark areas already hit, guideposts along   fences for visual reference, thoughtfully laid out 
tractor paths calibrated to align with the width   of the farmer’s equipment. But tricks only go so 
far. One study has put numbers on the overlaps.   Across the study’s 17 locations and four years of 
planting, the combine driller overlapped at 7.7%,   spin disk fertilizer at 9.5%, while the sprayer 
overlapped at 15.7%, and the cultivator reached   19%. At every step of the process of growing 
something, then, the farmer’s overlap is costing

them—8% of their seed is being wasted. 10% of 
their expensive fertilizer is being overapplied, nearly 16% in pesticide and herbicide is doing 
more harm than good, and almost a fifth of their field is being turned over by the cultivator 
for no reason. This means more materials. It also means more fuel, it means more time in the 
field and in the chair, it means more hours put on the machines, and therefore more hours in 
the shop and fewer functional seasons. Such costs really add up, too, as a bad year will see 
costs outpace income, while 10-year averages, in the case of Kansas farms from 2010 to 2019, will 
only net meager 11.8% profit margins. With such touchy and tight finances, unnecessarily wasting 
8 to 19% of one’s time and money on overlapping is a massive inefficiency. One that Deere was 
seeking to address at the dawn of a new century.

The answer was called Starfire, which by correcting notoriously inaccurate GPS data with ground location data, offered farmers field mapping accurate to within 3 feet or 1 meter, rather than the 10-to-30 foot or three-to-ten meter accuracy of traditional GPS. With further work on the product, by 2004, Starfire 2 provided accuracy within 1.5 inches or 4.5 centimeters. Through the collaboration with Stanford, NASA, and Navcom, who they eventually acquired, Starfire positioned the company again on the cutting edge of the precision farming revolution—not only did their product provide superior accuracy for yield and seed mapping, it was accurate enough to address the fundamental inefficiency of overlapping. Simply equip a machine with a Starfire receiver and a monitor, then purchase Deere’s Autotrac program, and farmers could now guide by precise lines laid out on a screen and even let the autonomous feature take the wheel.

Today, through a combination of six uplink sites on three continents, 46 reference sites around the globe, and leased bandwidth from Inmarsat satellites, the shovel and pitchfork company is able to provide greater accuracy than the public global positioning alternative, optimizing every single thread and turn across a farmer’s field. The influence of such guidance can’t be understated. Only 10% of farmers used any sort of auto steer and guidance system in 2004, but as of 2019, those numbers stood in the mid 50 to 60% range, and on bigger, thousand-acre farms where the economies of scale blunt the upfront cost and the waste of overlap is only magnified, adoption rates of such systems have reached over 80%. By applying the same playbook they did with the plow and the tractor—embracing then perfecting new technology through upfront R&D investment while also acquiring sector leaders like Navcom—Deere helped push farming into a

new epoch. But that epoch isn’t over, and Deere’s 
only dug themselves further into the digital turn.  Across the dozen American companies Deere has 
acquired since 2007, only four are traditional hardware manufacturers, the rest, broadly, are in 
tech, and increasingly in artificial intelligence, machine learning, and automation. In 2017, for 
just north of $300 million, Deere purchased Blue River Technology, who had recently been testing 
their new product called See & Spray—what they called the world’s first smart sprayer, which, 
by feeding hundreds of thousands of plant images through deep learning algorithms was capable of 
identifying crops and weeds before then spraying herbicide within a quarter-inch accuracy. Not 
long after, Deere’s See & Spray Select entered the market. Then, in 2022, See & Spray Ultimate 
became available for factory installation on 2023 model 410R, 412R, and 612R Sprayers. With a camera 
positioned along every meter of the carbon-fiber

spray boom, the product would reduce spray volume 
by two-thirds, saving money on herbicides and, by   extending trips between refills, saving time and 
fuel. The benefits of the next step in precision   agriculture also provided an environmental benefit 
beyond the farmer too, as this product, the   company projected, would reduce the airborne drift 
of chemicals by up to 87% and chemical run-off by   up to 93%. In this new era of AI and machine 
learning precision farming, John Deere was not   the first, as a Dyson subsidiary entered the smart 
spray space earlier. Nor is it alone, as AgZen,   a commercial outgrowth of MIT research, is pushing 
into the space, too. Whether John Deere wins out   here, as they have so many times in the past with 
new technological innovations, remains to be seen,   but given their history, it feels like a safe bet.
Regardless of competition, though, this service,  

capable of plugging right into the broader 
John Deere ecosystem, should be a boon for   the American farmer conscious of cost, yield, 
and overall environmental impact of their work.   Or at least, that’s what it would seem.
By standard metrics, farming in the US   has gotten better across the sector’s 
digital revolution—we’re wasting less,   making better-informed decisions, 
and growing more than ever: just   look at average yields for corn, soy, and cotton.
But consider the position of the American farmer.   In the past, being an all-green farm—that is, 
running strictly John Deere equipment—was a point   of pride. Today, though, it’s increasingly feeling 
like an expensive necessity without alternatives.   New-found hyper efficiency comes with a cost, or 
really, a whole host of costs. Say an Illinois soy   farmer is sizing up purchasing a See & Spray 
attachment—well, first they’ll need to have a

fairly new sprayer to begin with, which if they 
don’t have, will be in the ballpark of $50,000. Then add on another $25,000 for equipment and 
install, which can only be done at an authorized dealership. Still, given that soybean pesticides 
have reached an all-time high this decade coming in at $77 per acre in 2022, and given that 
this farmer owns the median sized farm for the state at 4,500 acres, considering scale, such an 
upfront investment may well be worth it. Without See and Spray, pesticides would cost $350,000, 
with the product, assuming it cuts spraying down to a third, the farmer would only need about 
$117,000 in pesticides—so with upfront costs, savings total about $62,000. But then another 
cost: See and Spray subscriptions cost $4 per acre so cut out another $18,000 and the 
economics become slightly less appealing.

And then there’s the less tangible costs. Fundamentally, precision agriculture is changing what it means to be a farmer. What was once an occupation defined by individual autonomy, problem-solving, and improvisation is now increasingly beholden to monitors, screens, software subscriptions, and the availability of manufacturer-authorized technicians. Undoubtedly, this is an issue of nostalgia, but it permeates in costly and frustrating ways too. Consider the solar storms that pushed northern lights as far south as the American Midwest. While it might’ve been a once-in-a-lifetime experience for the farmers who stayed up late to see it, it caused far more costly problems when the storm knocked out their navigational systems. Just at the moment farmers needed to be out planting corn, their precision navigation systems failed them. While solar storms are few and far between, issues with software programs and machinery that’s now more complicated than ever are far too common and far too difficult to get figured out.

for your life-long farmer. Rather than hauling 
a tractor back to the barn to fix a hydraulic   leak and get back out on the field that same 
day, when new-era hardware fails, there’s a   good chance a farmer will be out of their depth 
if it’s on the technology-side of the machine,   which as the far more finicky side, it likely 
is. So rather than fixing it and getting back   out on the field, the farmer’s left waiting for 
an authorized technician who will be expensive   to pay and costly on time, as it’s unlikely 
they’ll be available at the drop of a hat.  And all that’s without considering whether the 
farmer has the tools and information to make the   fix in the first place—which is also a matter of 
contention. Across the past decade, John Deere has   found itself in the middle of a battle over the 
right to repair. For those savvy enough or bold

enough to fix their own issues, they often need 
access to the diagnostic software to begin with, which is something Deere’s been slow to hand over. 
Their stated reason to keep software restricted is a matter of liability and responsibility. 
If they hand over the keys, they figure, their machines might get used and altered in 
ways they shouldn’t. But for an increasingly boisterous farming community, this withholding 
of key information is simply another way to make sure that farmer is also on the hook for costly 
repair bills that make their way back to Deere, thus providing the company yet another revenue 
stream. Regardless as to who is really telling the truth, what’s undeniable is that the 
farmer is as financially squeezed as ever, and with the rise of big tech in farming, they are 
increasingly being moved out of the driver’s seat. But Deere is facing their own financial 
pressure—competition is rising, so they

have to adapt to maintain their relevance. Over 
the past decade, venture capital money has poured   into startups that insist they can disrupt the 
world of food production. Whereas in 2013 there   were 42 funds focused on the AgriFood space, 
today there are almost 300 reaching a peak   of $53 billion of investment in 2021. A simple 
thesis is presented to potential investors—the   global share of land dedicated to agriculture is 
peaking as more and more of the world urbanizes,   yet simultaneously, the global population is 
expected to continue increasing for at least   half a century more. Therefore, it is objectively 
true that we will have to produce more from less,   and these startups believe the way to do 
that is through technological innovation. Different companies have different solutions 
to this problem—some are focused on “controlled   environment agriculture,” growing indoors to 
eliminate the threats and resource-losses from the   outdoors; others are leveraging big data analytics 
and machine learning to remove the inefficiencies

of guesswork; while still others are working to 
increase outdoor production yields and lower labor   costs through various forms of autonomy. Building 
on early successes in precision agriculture,   John Deere has committed to developing a fully 
autonomous production system for corn and soybean   by 2030—that means every step from plowing 
through planting through harvest without direct   human involvement. And that’s remarkably 
believable. Corn and soybean are planted   in straight rows with relatively high distance 
between each plant, meaning there’s already the   predictability and margin for error that makes 
it easiest for autonomous systems to succeed.  The combination of innovations like 
precision agriculture, indoor growing,   autonomous production, and more will yield amazing 
benefits for us all: in sum, they create a food   production system that is less expensive and less 
resource-intensive. But they come at a cost—a very   literal, incredibly significant, upfront cost.
The economics of paying an exorbitant amount for

a fully autonomous wheat production system works out first for the absolute largest farms. Just as with See & Spray, every innovation promises to improve efficiency by a certain, small percent, so the larger the overall operation, the more valuable that small percent can be, and therefore the more likely the upfront cost is worth it. So innovations can be worth it, but only if you grow a ton of food. This has been true for a while—there have been greater and greater economies of scale in agriculture—which has contributed to a long-term trend of consolidation. Over the past 25 years, the average size of an American farm has grown by 7% even as total farmland has declined 8%—as small farms face increasing cost pressure by more-efficient big-ag operations, they either shut down or sell their land to big ag. And as big tech encroaches into farming, innovation is accelerating, which is great

by itself, but this leaves the small family farm 
behind. A layperson’s perception of farming, as a mom and pop living in a homestead in Kansas, 
working the fields around, answering to no boss but themselves, is becoming a cinematic fiction.
Increasingly, those living in regions dominated by agriculture work not for themselves, but 
for landowners holding hundreds of thousands of acres. Often, the owners of this land 
live time zones away, meaning profits from production are not spent at the local diner 
or car dealership, but rather distributed to a multitude of investors and left to sit in 
mutual funds. This contributes to a further gutting of the economy of rural America—one of the 
rare ways to build a business outside of cities is becoming an increasing impossibility, and rural 
resources are being extracted for urban gain. This is, in many ways, inevitable. Tech 
innovation, across essentially any industry,

has primarily benefited larger corporations, and incentivized consolidation. Farming, being so far from urban areas and so culturally isolated from Silicon Valley, has long been shielded from these forces. Yet today, John Deere and others have recognized the upside of bringing these two worlds together. But this progress will hurt. The death of the family farm is upon us, and the autonomous tractor sits just beyond the horizon, waiting to unleash its destructive ability to incrementally optimize yields.
The reason why John Deere’s See & Spray technology is so powerful is that it’s able to interpret visual information and make decisions on what a given plant needs in an instant, at a huge scale. What makes this possible behind the scenes is a neural network—the software was fed millions of images and taught to interpret them as a human would. Neural networks are fascinating as they’re essentially recreating a brain in a digital environment, and they’re also some of the most wide scale instances of

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How Big Tech Ruined Farming

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John Deere's Transformation into a Tech Company

John Deere, known for manufacturing tractors, is now positioning itself as a leading robotics and AI company.

The company is shifting its focus from making machines to providing integrated production solutions, including software, hardware, and services.

This transformation reflects John Deere's significant influence on the agriculture industry, as it moves towards becoming a market-domineering tech giant.

John Deere: Transforming Agricultural Technology

John Deere revolutionized farming with the mass production of polished steel plows, significantly impacting agriculture in the American Midwest.

The company's transition to manufacturing gas-powered tractors, starting with the acquisition of the Waterloo Gasoline Engine Company, led to widespread success and established John Deere as a key player in the industry.

Over time, John Deere evolved to offer a wide range of agricultural equipment, solidifying its position as a leading source of farming technology in the United States.

Rockwell's Vision System used defense satellites to revolutionize farming efficiency.

Deere took it further by developing an autonomous GPS-controlled tractor in collaboration with engineers from Stanford, NavCom Technology, and NASA's Jet Propulsion Lab.

Before precision farming, the major inefficiency in farming was the unavoidable overlap, which led to significant costs for farmers.

Deere addressed farming inefficiencies with the Starfire system, providing unprecedented GPS accuracy for field mapping.

This technology significantly reduced overlapping, leading to a widespread adoption of auto-steer and guidance systems by farmers.

Deere's further advancements in AI, machine learning, and automation, such as the See & Spray technology, have revolutionized spraying processes with unprecedented precision.

The Impact of Precision Agriculture on American Farmers

John Deere's new spray boom product offers cost and time savings, as well as environmental benefits, but faces competition in the smart spray space.

The increasing cost of high-tech farming tools, like the See & Spray attachment, is challenging the traditional image of American farmers and their autonomy.

Despite the financial savings it offers, the upfront investment and subscription costs of the See & Spray raise concerns for farmers.

The Impact of Technological Innovation on Modern Farming

Farmers are facing challenges with new-era technology, often needing expensive authorized technicians for repairs.

John Deere's withholding of diagnostic software is causing contention and financial strain for farmers.

The rise of big tech in farming is putting financial pressure on traditional companies like John Deere, as a large amount of investment is now pouring into startups focused on technological innovation for agricultural production.

The Impact of Tech Innovation on Agriculture

John Deere is set to develop a fully autonomous production system for corn and soybeans by 2030, leveraging the predictability of their planting process.

The trend towards agricultural innovation is leading to a consolidation of small farms and a shift towards large-scale operations, impacting the traditional image of family-owned farms.

As big tech encroaches on agriculture, the industry is becoming less localized, with profits being distributed to distant investors rather than reinvested in the local rural economy.

The Impact of John Deere's See & Spray Technology

John Deere's See & Spray technology uses neural networks to make instant decisions about plant care, potentially revolutionizing farming.

The use of this technology represents a significant shift towards the integration of agriculture and AI, despite the traditional isolation of farming from technological advances.

org offers a class on neural networks, providing an opportunity to understand this cutting-edge technology and its practical applications in agriculture.