The purchase of a large tractor or combine is a watershed moment in most farmers’ financial planning, especially now that some of the largest combines offered by manufacturers are topping half a million dollars.
In other industries, this scale of investment in machinery and equipment typically comes with a long-term warranty and a multi-year service agreement.
Traditionally in agriculture, it doesn’t. Not even close. Farmers are given maybe a one-year warranty, plus an owner’s manual, and then they’re sent on their way home with a smile and a cheery wave.
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It isn’t that farmers are okay with this. Many surely take serious issue with this. But there isn’t a lot that they’ve been able to do.
The bottom line is that a tremendous amount of money is being exchanged for some of this equipment, and while reliability and quality are key factors in our choices, a warranty represents one way for producers to have some peace of mind that the equipment will be backed up by the manufacturer.
Most farm equipment companies offer an extended warranty which, for a price, builds on the basic warranty for that particular piece of the equipment. However, you may have to do some work to sort out what you’re actually getting.
If you go to a company website to figure out how much warranty protection comes with a new tractor or combine, you’ll often find it frustrating to get your answer. You’re more likely to see what the extended warranty covers, as well as what it costs.
The reason is, in part, that manufacturers keep the terms of their basic warranty close to the vest. Corporate websites also span the world, and there are myriad different countries and regions where the terms of the basic warranty will be different.
For the most part, warranty protection is more or less equivalent in the U.S. and Canada, but purchasers do need to check these things out to make sure.
Jeff Preston, manager for worldwide reimbursement for John Deere, says Deere tractors have a basic warranty covering 24 months or 2,000 hours, whichever comes first. On Deere’s combines, the basic warranty is for 12 months. However, the engine in the combine is covered for 24 months or 2,000 hours, whichever comes first.
Preston also says that under some conditions where a repair has to be made outside of the warranty, there may be “special conditions” where part of this cost will be picked up by the company or shared with the farmer. For instance, there might be a fairly major repair done which is just outside of the warranty. Preston emphasizes though that these “special conditions” would be negotiated with the help of John Deere service people and John Deere representatives outside of what is called the basic warranty.
Fendt takes a bit of a different tact with their basic warranty protection for their Fendt 700, 800 and 900 Series tractors. For tractors retailed or leased in 2010, Fendt customers receive the brand’s Gold Star Customer Care Plan at no additional charge. This means that Fendt tractors are covered with a three-year, 3,000-hour warranty, whichever comes first.
There are service intervals at 50 hours then every 500 hours until 3,000 hours. Fendt will cover service, labour and parts during the three-year 3,000-hour term. Fendt also has a “Machine Down” loaner program where they will pay 50 per cent of the loaner cost to a maximum of 100 total hours for Fendt tractors which are inoperable.
Are farmers looking at such details? Carlton Self, a marketing specialist for high-horsepower tractors with AGCO, says the Fendt warranty is very popular with customers.
Adam Reid, marketing manager for Versatile says Versatile offers a three-year, 3,000-hour warranty comprising a two-year, 2,000-hour warranty followed by an additional one-year, 1,000-hour power train warranty. (Cummins engines provides its own warranty for engines in Versatile tractors.)
Ryan Shust, Versatile’s product manager for tractors, believes Versatile’s warranty shows the company’s commitment to quality and reinforces the idea that they make a reliable tractor. Shust says that at one time Versatile had an extended warranty but decided to discontinue it. Asked if they would cover issues which occur slightly past the warranty, Shust responded by saying he doesn’t think there is anybody in the industry who would shut the doors on that, as fairness to the customer is always key.
Combines have a lot of moving parts. When you drive one it’s obvious that there are many things that can and eventually will go wrong. That is one reason why most manufacturers have a 12-month basic warranty on combines.
Sometimes there are exceptions. For instance, as part of its launch of its new Super 7 combines from this year, Gleaner has been offering a full two-year warranty, partly as an incentive to get more units into the field.
Gord Chamberlain of Dey’s Farm Equipment in Tillsonburg, Ont., also points to the larger Challenger tractors, which have the basic two-year warranty, but at the present time are sold with another two years of extended warranty for no extra charge.
From a farmer’s perspective what is increasingly obvious when discussing warranty is that every manufacturer has its own policies. Direct comparisons are difficult, involving deductibles, maintenance schedules and upfront costs.
These warranty programs may be valuable to producers depending on how long they are going to keep the machine and what type of maintenance threshold is maintained. Some type of extended warranty pushes out the safety net further against future repair costs.
Is the warranty negotiable? Despite the big price tags, the conclusion seems to be, not really. Still, the rubber hits the road at the dealership. What degree of protection do you want when buying farm machinery?CG
