Conference Transcript - AGCO 2026-06-09

Speaker 1

Good morning, everybody, and welcome. I'm thrilled to be here with you today for the first time with Wells, and I'm really delighted to have the management team from ADCO join our conference. Damon Odia, Chief Financial Officers on my left, Greg Peterson, Vice President of Investor Relations here, and we have Stephen King, Senior Manager of IR, present in the room as well. So, Damon, Greg, thank you very much for supporting the maiden voyage here at Wells. Thank you for being here. To start the conversation, Damon, I just want to go back to the 2024 Analyst Day where you folks laid out key growth targets. You spoke about the FENT opportunity in North America. You spoke about product and technology offensive and building the brand. Fast forward to today, where do we stand on progress towards those pillars that you laid out? Yeah, so Jerry, thanks.

Damon Audia, CFO

I think overall we feel very good about what we're seeing against all three of the pillars here. You know, we're seeing some real tangible results in our market share. Fent gained share both in North and South America last year. So farmers continue to see the value of the benefit of the most fuel efficient products out there, along with the warranty and our new farmer core initiative of servicing them. So if I break it down, a couple of the components that you touched on here with the distribution, you know, the dealer footprint for us in North and South America over the last couple of years, we've been rolling out these FENT dealers here in the North American market and our Latin American market. today we're just over 80 percent of the uh of the white space covered uh so we have a dealer present we've enhanced that uh through our farmer core initiative and if you remember that's not having a brick and mortar store every 25 miles or every 40 kilometers but rather having a smaller store for the for the dealer and then enhancing that with mobile trucks and those mobile trucks can do 85 90 percent of the work on the farm and what this allows is our farmers to get service more how they want to be serviced it allows them to have work done on the farm in addition to what the dealer is there to service but do other work on the farm that helps them become more productive our dealers love this because their break-even cost goes down so instead of building building these large brick and mortar stores with 10 or 12 bays. You build a smaller store, three or four bays. You add your mobile truck so you're able to cover more white space. You're able to shift your resources to where the demand is in your territory. And for Agco, we love it because our farmers' net promoter score was an all-time high last year. Farmers are getting served how they want. We're able to better connect with them through telemetry and other information we're giving off the machines to help our dealers service them. So farmers are happy, our dealers are happy because they're getting usually a higher attachment point and we're happy with better parts and service revenue. So the Fent dealership rollout with Farmer Core has been extremely successful. We see that momentum continuing. Product technology, we continue to see great performance with the new introductions of our Fent brand here in North America, new introductions in South America, along with Europe. So overall, we have good momentum here in the North American market. Industry's challenge, as we know, no surprise, but we're gaining share here and optimistic that as we see the markets recover, we'll start to see that drop to the bottom line here.

Speaker 1

And I'm wondering if we just double click on progress on FENT. What's the revenue footprint for FENT in the Americas today? How does that compare to where the Challenger brand was before you folks made this transition?

Damon Audia, CFO

yeah the with the large ag being so cyclical right now and we know it's again before i give go through the details here if you remember the industry for agco we're sitting at around 85 percent of mid-cycle right now um you know go back a couple years as a company we were sitting at around 109 percent of mid-cycle so we've come down 20 almost 25 percent um if i look north america so So in large ag this year, North America will be in the 70s, so 72% of mid-cycle. So we are sub-trough from what we would normally have talked about for our North American market. South America has been equally challenged, even though the industry as a whole is sitting at around 85% of mid-cycle. When you start to look at some of those products like combines, high-horsepower tractors, they're significantly below that 85. That 85 has been buoyed by medium to low horsepower. So FENT in 2024 in North and South America was around $1.4 billion. With the industries coming down in both of those regions, we were just under a billion dollars last year and will probably be a little bit lower than that this year because the industry is contracting both here in North America and in the Latin American region for the high horsepower. So sub $1 billion right now.

Speaker 1

And then, Damon, you mentioned 80% covered today.

Damon Audia, CFO

uh what's the timeline to get to 100 covered uh so we'll never get to 100 i'd say our goal is to get into the low to mid 90s and you'll see that more over over the next several years again it's very important that as we pick the dealer we have more demand to be a fent dealer than what we have an appetite because every dealer has got to go through a qualification process he or she has to have the political or the sorry the the capital to be able to invest in loaner machines they have to the ability to invest in the right type of technicians. They've got to demonstrate the ability to do farmer core. And so for us, we want to make sure that whatever dealer we pick to represent FENT, the stores that they're putting in place and the dealer themselves can represent that premium brand. So we're very selective. We're just not going to put a dealer in everywhere. We want to make sure that where we put it, it fits the needs, but at the same time, that dealer can service us as our key ambassador. At the end of the day, they're our face to our customer in a lot of ways and we want to make sure that when they go on the farm and they bring Fent to that farm it helps that farmer understand they're getting the best of the best. And what proportion of your

Speaker 1

distribution is through Caterpillar dealers? Did you transition the Challenger dealers? Yeah

Damon Audia, CFO

in the North American market I would say the majority of our revenues in the North America still are coming from a cat affiliated type dealer. So our largest dealers here in North America would be Ziegler and Butler here in the Midwest part of the country. And both of them have

Speaker 1

a strong cat business still. Very nice. So that part of the challenger transition worked really well. And then how does the Fent brand work in South America? You have Baltra, you have Massey.

Damon Audia, CFO

How does Fent fit in in South America? Yeah. So when you look at Fent in South America, again think of that targeting more of those large professional growers in the Mato Grosso region so Massey Ferguson has its own distribution channel and then for Fent it's usually complementing to Voltra and so you'll have a Fent Voltra dealer when you I was just in South I was just in Brazil a couple weeks ago when you walk into these large dealerships or in the Mato Grosso region you turn to the right and it's all Fent it turns to the left and it's Vultra. So that dealer is sort of servicing two different types of farmers. You have the large professional growers who are tech-seeking, looking for maximum fuel efficiency. They're going to appeal to Fent. And then when you look at the ones who are a little bit more value-orientated or more sugarcane-orientated, where Vultra has a really strong history and legacy there, you know, that dealer is going to service them with Vultra. But think of Massey as one channel and then FentVolter as a complementary channel.

Speaker 1

And then what has played out from a market share standpoint in South America? Deere has spoken about gaining share over time. What's been the shift in the industry from an Agco standpoint?

Damon Audia, CFO

Yeah, so again, I think we've been growing share with Fent in the region, but the industry has been shrinking. So when you look at the number of units being sold, we're selling fewer units. but when we look at that high horsepower segment where the Fent tractors play we've gained share when we look at the momentum planter best planter in the industry it's got the articulated frame and if you look at the topography in the in the Mato Grosso region that frame flexes around the landscape there so that Fent tractor and the momentum planter our South American team calls it the combo deal where the momentum is driving a purchase of the Fent tractor we've seen good share growth in both of those sprayers we've got some good momentum with our rogator there and combines with our ideal combine that we make down there we've grown as well again all of these are getting good momentum uh just in an industry that's been very challenged the the exciting part for us is we were at the uh the argentinian fair a couple weeks ago uh and we announced we're bringing fent into argentina so again fent had historically been going solely into brazil so with the momentum we're seeing there we've now announced our plans to bring that uh that brand to argentina i can tell you the farmers were ecstatic because there are a lot of tech seeking large tech seeking farmers in argentina and now they have the ability to access the the premium bent brand is a really exciting for them so we're excited it's not a huge market for us if you think about south america or latin america 80 sits in brazil 10 is around argentina 10 is the other parts of South America. So not a huge market in units, but a good profitable market that we're

Speaker 1

excited to bring the Fent brand to. And you know, unfortunately, and Fabia stopped giving us market share numbers maybe six, seven years ago, if we were to pull up the data, so the Adco is gaining share at the high end, Deere is gaining share, that implies Case is in New Holland is losing

Damon Audia, CFO

share. Is that what the data would show? Well, there's always a mix. You know, again, I think isolation every one of us can point to winning and someone's going to point to someone losing but i think when you look at the revenue growth of what we had seen in fence again to go back a couple years um you know there was little to no revenue from fent in south america um you know 20 as i said 2024 we topped out at a billion four um and i think that was around 500 million or so coming from fent that that had to come from somewhere jerry and uh you know so for us we're penetrating these large farms we're giving them an alternative to the competitors out there we feel good about the share we're gaining and we feel good about the opportunity to continue to gain share you know where a farmer picks what they choose to trade in again we'll

Greg Peterson, Head of Investor Relations

leave that for them and jerry also in brazil you know there's kind of two segments of the market there's the southern part of the country where historically most of the farming was done so think smaller mid-sized farms the real opportunity in brazil is the midwest part of the country we have historically been under indexed there but since we brought fent you know four or five years ago that's where our share gain has happened so again depending on where you are in the country and what segments you're talking about for us it's been in the mada grossa region

Speaker 1

a really interesting perspective thank you and uh and then in terms of the overall uh profitability of FENT in North America and South America. Can we just spend a minute? Unfortunately, tariffs were not helpful to ADCO. If we were to peel back FENT economics in North America, what would that look like compared to the other product lines?

Damon Audia, CFO

Yeah, so I think there's a couple layers to the question, I think. If I think about the FENT wheel tractors, generally speaking, the price point of a FENT wheel tractor in the industry is it prices above the competitors so even here in north america uh the fent wheel tractors are the are the most expensive products out there they price above the competition because they deliver significantly more value whether that's fuel efficiency better warranty there's an array of things we could talk to as to why a farmer is willing to pay more for that product versus the versus the competitors now there's been two challenges when i think about the north american One is the tariffs. So those wheel tractors are imported from Germany. The combine is imported from Italy. And so that has put pressure on the margins, if I look at that. So when I look at North America this year, we will not make money given the level of tariffs that we're dealing with. But also when you look at some of the other products, that products are our tract tractors we make here in Jackson, Minnesota, our sprayer we make in Jackson, Minnesota, our ideal or sorry, our momentum planter we make in Beloit, Kansas. So we make a lot of the FENT products here in North America. The challenge is the industry has been so low. Those factories are running at very low levels of utilization right now. So when I look at the profitability, it's hard to give you a how is the profitability of FENT looking right now, because you're dealing with factories that are running at around 30% utilization. And that is putting a lot of incremental cost in the North American P&L that's not getting us absorbed by units. So when I look at the price point, though, of what we're selling these products, I feel good about the price that we're selling them at relative to the competition. We just need to get the volume flowing through to get those factories better utilized to get the overall

Speaker 1

profitability of North America up. And, you know, what's interesting in our field work, even deer dealers talk about how strong the Fenn tractor is. Can we just spend a minute in terms of, you know, your R&D budget is far smaller than Deere's R&D budget, yet you have a phenomenal tractor. Can you just talk about how you folks are able to continue to drive the level of outperformance for your tractor specifically with the Fent brand?

Damon Audia, CFO

Yeah, I mean, I think it's beyond just Fent tractors. I think our innovation engine is the most farmer-focused innovation engine in the industry. Again, when you look at what we do um you know we spend around four percent of sales on r d but you look at the results you know go back and look at the ae50 awards here over the last several years i think agco in most years has won as many or more than the other two when you look at the awards from agrotechnica um you know tractor of the year i mean agco continues to to deliver award-winning innovation not only on the equipment side but also in ptx uh the davison award for our trimble or sorry for our autonomous grain card autonomous tillage two years in a row we've won the davison award so the team focused on farmer value and innovations which contribute to the farmer and i think you're seeing that in the marketplace with the awards that were being um given and And it's sort of a recognition that we're doing it the right way versus spending more broadly. We're very concentrated where we're spending dollars in the innovations that are delivering for the farm farmers.

Speaker 1

And in terms of if we were to essentially apply normal operating leverage to your business in North America from 72% of normal to in line with normal, I think that would imply North America margins in the mid-single-digit range. Is that how you're thinking about normalized margins in North America at this point? And where would FED be relative to that?

Damon Audia, CFO

Yeah, it's a little bit hard with tariffs embedded in the numbers right now. It's a little bit hard to sort of understand what's permanent versus what may change longer term. But fair to think about as we get those revenues up into the low twos. Today, I would tell you with tariffs, we probably got to get into around $2.2, $2.3 billion of revenue to get to be around break even, maybe a little bit less with some of the recent pronouncements on tariffs last week and this week. But I think if those are more permanent cost structure, you're sort of seeing in the low upper digit single margins. Ideally, we like to get all of our regions into that double digit margin range. But with the North American market being burdened by a high level of tariff costs right now, that's definitely a little bit more challenging. Fent overall, again, you got an array of product in the portfolio there between all of the wheel tractors, the sprayer, the combine, the track tractor. I'd say the profitability ranges depending on the product type and again where we are from a share standpoint but I think generally the way to think about this is Fent is our highest margin equipment brand usually as significantly above the company average and it sits up there not as high as our parts or our PTX margins but from an equipment standpoint it's above the corporate

Speaker 1

an average. And then in terms of on the tariff point, as you alluded to, favorable for AgCode, the recent changes, I think the tariff headwind that you had guided to is about $130 million. Just mathematically, it feels like you've got about a $60, $65 million tailwind relative to that number on an annualized basis, recognizing that you paid full tariffs before that. But on a run rate basis. Is that right? Or are there any carve outs that we should know about as we look at the decline from 25 to 15% rate on farm equipment? Yeah, so not exactly that much. So

Damon Audia, CFO

a couple pieces to take into consideration. So we said the full year tariff impact this year was around 135 million. With the recent change in the 232 going down to 15%, that would reduce my annual tariff cost by about 50 million or so right now if I think about what that means for 2026 there that'll take it down by around 20 million based on what came out now yesterday there were some new HTS codes that were published that could take it down further so we've got to run that through our machine see how that affects us and then we're still waiting there are still 301 tariffs pending. So I think if we just look in isolation, we're $20 million better than what we said at our Q1 call for 26. We'll be about 50 million better run rate if nothing changes, but we've got to factor in potentially some positives on the HCS codes and potentially some negatives on the 301s. And again, just to remember in North America, about 35% of our revenue is imported into the country um of the north american revenue 25 of that's coming from western europe so that's the fent tractors that's the massey ferguson high horsepower coming out of france ideal combine coming out of italy so those are that 15 give or take but we also import around 10 of our revenue from other countries for more of that medium to low horsepower so we have supply coming in from Japan, Indonesia, India, Brazil to a certain degree. So depending on those 301s and what country is and what the rate may be, that could potentially be an incremental headwind. So we've got to see how these things sort of come together over the next couple months. We'll give a better outlook when we get on our Q2 call, but at least right now, the last couple weeks have been a positive relative to what we had communicated in Q1. And Jerry, just to

Greg Peterson, Head of Investor Relations

to be clear in terms of our guidance we have not assumed any benefits that damon's addressing here nor did we include any of the refunds that were set up to receive so we're our guidance today i would say includes that full 135 that damon talked about all right we did not book a reserve for the

Damon Audia, CFO

iva refunds although we've submitted 30 million dollars as part of phase one we have received some cash already back but none of that has been embedded in our outlook as greg said

Speaker 1

Well, a great recap of trade policy. That was super. And then in terms of thinking about the trends in the cycle. So over the past couple of months, as corn emergence has unfortunately been ahead of fiber average, corn prices have been pretty tough in May. We saw used equipment inventories for large ag in North America move in the wrong direction. Are you seeing higher farmer anxiety today versus three months ago in North America, given the move in the wrong direction for soft commodity prices?

Damon Audia, CFO

I think we're seeing higher anxiety from farmers around the world today versus three months ago, given the war. Again, when you look at where we're sitting with diesel fuel cost increases, the fertilizer cost increases that farmers are potentially dealing with, it's created a tremendous amount of uncertainty. And if you just look at some of the health indexes or the barometers, here in the U.S., we look at that Purdue Ag barometer, and you've seen that tick down over the last couple months. so we know there's a lot of anxiety good news is for farmers at least right now most of them had procured their spring fertilizer in advance of the war so they really weren't dealing with the significant increase in prices they went into spring planting now they have their mid-season passes and more importantly start to think about locking in their 27 fertilizer what's the cost they're going to pay here in the fall and will they buy the same amount at a higher price are Are they going to have to rotate some of their crops to less nitrogen-intensive crops, or are they going to buy less fertilizer to try to keep their cost level low, which will then compromise 27 yield? We're going to have to see. I think there's a lot of anxieties of what does each farmer do and how does that affect his or her growing pattern next year? So there's a lot of uncertainty, more forward-looking. In the near term, though, I think what we're seeing is a lot of farmers monetizing the yields that they had last year. If you remember, last year was a great harvest here in North America, very strong yields. Corn prices were not that great a year ago, so a lot of farmers stored their grain. So with corn sitting in the 480s or so, you're seeing a lot of those farmers right now taking advantage of that price and getting some cash into their bank accounts. So a little bit of a short-term benefit, but a lot of uncertainty as they look forward here as to what are they going to be forced to pay as they go into the back half or the end of the calendar year.

Speaker 1

And then, you know, you mentioned capacity utilization for large ag in North America, 30% for you folks, very similar numbers across the industry and use values are now improving. You know, what's the level of confidence that we'll produce at a higher level than 30% in 2027 based on the improvement in use values? how would you weigh that against the uncertainty the farmers are seeing?

Damon Audia, CFO

Yeah, I think, well, it's hard to forecast what the industry is going to look like. But if we look at the data, the age of the fleet is at a record high in North America. We normally average the age of the fleet at around six and a half years. We're closer to eight and a half right now because when we went through the supply chain, we went through the peak in 22 23 and earlier 24 the industry because of supply chain challenges we could only get the age of the fleet and the farm from old to average we never got it young and then end of 24 into 25 and 26 we've seen the downturn now and so that age of the fleet has creeped back up so we know the age of the fleet is high we know that if we look at again all the decisions farmers are going to have to make on a crop rotation potentially less fertilizer will likely result in less yield in 27 as that starts to trickle through some of the usda and others estimates for 27 we'll see corn futures rise that could be a windfall for farmers as we get into the harvest of 27. so there's lots of reasons to think that the industry could be in a much better position next year as we look at our production if that industry starts to pick up or even stays flat, we're going to see higher levels of production either way, because today we're underproducing relative to retail demand. We're still trying to work our dealer inventory down. We're sitting at around seven months right now. We want to get that down to six, but we were up in the nines a couple quarters ago. And so we've been underproducing that retail demand, trying to bring that dealer inventory to the right level. So as that sort of stabilizes here over the next quarter or two, even if that industry doesn't pick up, you're still going to see a higher level of production flowing through our factories because we'll be producing more in line with retail.

Speaker 1

And then in Europe, you folks are executing phenomenally well, and we're seeing record margins or near record margins out of your business. Given the pressure on farmer economics, how do you view the risk to your European business, especially given your orientation very heavy in Germany. What implications does that mean for the business over the next 12 months, given all the moving pieces?

Damon Audia, CFO

Yeah, again, I think similar to North America, there's a lot of uncertainty for those for the European farmers. If you look at the SEMA index, which, again, is another European barometer that had been sort of circling in that growth category for probably around 15 months, really hadn't moved. And if you look at post the start of the war, that index has sort of started to tick down a little bit. So, again, a very similar dynamic that we talked about for North America is farmers are going to have to make some decisions as they come into the fall. Now, a little bit different in Europe. You have a lot of winter wheat there. So that's harvested here in the early summer. You have a little bit more crop diversity. Farmers tend to carry a little bit more livestock and dairy on their farms. more grain diversity there and so you have a little bit more variability but that farmers gonna have to go through the same decision do they rotate their crops do they buy less fertilizer do they buy the same at the same cost or at a higher cost so they're gonna go through all those dynamics the good news for us and the good news in Western Europe is you still have a high percentage of those farmers income comes from government subsidies so in Western Europe close to 50 percent of their income comes from subsidies and that tends to be relatively consistent so you have less variability from an order pattern there our industry in Europe usually flexes from around 90 to 110 so it doesn't usually get too high but doesn't get too low like we see here in North America or in South America so you have better crop diversity better stability from subsidies we look at the dealer inventory we're sitting at around just under four months so very in a very healthy position there we haven't had to go through a significant level of destocking when we look at the order boards we're sitting with in the three to four month range for our european business so we have pretty good visibility based by based on historical standards so again a lot of uncertainty but the teams have done a really good job staying at the farm table talking to the farmers new product introductions coming out that are driving better fuel efficiency better innovation coming out of Fent as well along with Vulture and Massey so again it's uncertain but I think overall we're Europe's in a relatively good position and then on your mid-cycle framework

Speaker 1

can you remind me is that a seven-year average and where is Europe relative to 90 to one yeah

Damon Audia, CFO

we look at the 10-year average and Europe is sitting at around 90 percent of the 10-year average and that's usually the low point that we sit at in the European market very interesting

Speaker 1

and germany's done better i believe is that is that right germany's done well um the last couple

Damon Audia, CFO

years france has been a little bit weaker this year the so the two biggest markets in europe are germany and france we're fent where our agco has great market share between fent massey and valtra um fent has done well in gaining share in both of those markets the last couple years german market's been strong stronger this year french market's been a little bit weaker

Speaker 1

um for for the uh industry though got it uh and then on the precision ag side uh so your planters uh especially an aftermarket business really phenomenal position in the industry can you talk about what demand looks like this year obviously planting season's over what what were the results

Damon Audia, CFO

for for agco yeah how did business perform yeah so we're still in the in the second quarter so So we'll give you a little bit more information on that at the second quarter call. But if you look at our PTX portfolio, again, one of those unique differentiators that AGCO offers is that we have three different channels in the PTX business. We have last year that business was $860 million. We said this year it'll be around $860 to $900 million. And if you can break that down into the three primary channels, about one third of that goes to AGCO. So that's PTX technology getting into the factory floor for a Fent product, a Massey product, or a Vulture product. So think of that, Agco OEM Direct, about one-third goes there. That's going to cycle with the overall ag industry. We also sell to 100-plus OEMs, again, between Precision Planting and PTX Trimble. We pretty much sell to every OEM other than the big one. look at a back of a planter from competitors, see precision planting, guidance systems from major companies using PTX Trimble. So we have 100 plus OEMs that we're selling to. That's around another 300 million directionally. And again, that's going to follow the overall industry cycle. The third part is that unique part about Agco where we have that separate retrofit channel. So these are independent technology dealers. These are usually not the equipment dealers who are selling a new tractor, a new sprayer, a new combine, they're selling seeds, they're selling agronomy, they're on the farm driving technology. That business is around 300 million as well. So about one third, one third, one third, that business has been a lot less cyclical. So it's usually about one third the cyclicality of what we see from the new equipment business. And so again, that's because as farmers have been more challenged from a net farm income standpoint, They're still looking to reduce their input costs or drive higher yields, and you can get a much faster payback at a much lower entry point. So our whole PTX portfolio targeted at retrofit first, and it's allowing those farmers to keep their old traditional iron, but upgrade it, make it smarter, make it more productive by bolting on these PTX pieces of equipment that generally yield a one-year, maximum two-year payback for them. So if they're looking to reduce their fertilizer, there's options on their planters. You look at the targeted spraying, again, reducing the herbicide use because now you're bolting on our vision system and our nozzles to your existing sprayer. You don't need to buy a brand new sprayer, but you can buy the camera system and the nozzles, and you can put that on your old sprayer. So giving them a lot better, giving them the efficacy, the lower input costs at a much lower price point. And then you look at our autonomous systems. So we have autonomous for the grain cart, we have autonomous for tillage, we're coming out with autonomous for fertilizer. For that farmer, he or she's buying the system for their John Deere tractor or their Fent tractor, and they own that piece of equipment, and then they can then buy the hours for tillage or grain cart when they want it. and so again it gives them a lot more flexibility they're not having to buy a brand new tractor they're literally just buying the system and bolting onto their existing tractor giving them a lot more flexibility to test out this new technology without having to make a massive investment on a brand new tractor because we know times are tough but yield efficiency labor shortages this is a time where they can get a lot better payback with some of this technology without having to make those large upfront investments.

Speaker 1

And then, you know, Deere rolled out on a subscription basis, the GPS kits and you folks have a phenomenal position in that business. Are you doing it on a subscription basis as well? So they've got good traction, you know, 4,500 upfront, 4,500 a year, but do you have a matching product? Is that how you're taking them on market?

Damon Audia, CFO

No, we're trying to, as we've talked to the farmers again, And these times when net farm income is low, adding subscriptions to them for the basic necessities, they tend to run into a lot of resistance with that. And so we've tried to serve the farmers how they want to be serviced, where they see the incremental value for the subscription. So, again, the way I would look at like our, you know, if you look at our guidance systems, you own the hardware, you have a small annual subscription. If you look at our autonomous system, you own the hardware, but then you buy the hours that you want or need. So if you want to buy hours for autonomous tillage, you buy those hours or autonomous green cart, you buy those hours. And then if I look at like our targeted spraying system, that's yours. You buy that equipment up front. So if you want to go into the field one time, two times, three times, it doesn't cost you anything different from Agco. You've already owned the equipment. It's just your labor, your diesel fuel for your sprayer. but we try to sort of service them how they want to be serviced super well thank you so much

Speaker 1

gentlemen for joining us damon greg i appreciate you making the trip thank you jerry thank you