AGCO to Form Joint Venture with Amity for Air-Tilling Equipment

Nov. 15, 2010
Focused on products that for sustainable agriculture concept

AGCO, a Georgia manufacturer and distributor of tractors, combines, and a range of other agricultural equipment, is planning a joint venture to develop and distribute air-seeding and tillage equipment. The project with Amity Technology LLC calls for AGCO to acquire a 50% stake in selected air seeding and tillage product lines now sold by Amity under its own brand name, and as Wil-Rich and Wishek products.

Amity Technology is a company formed in 1996 by two former executives of Concord Inc., Howard and Brian Dahl. When Case Corp. acquired Concord that year the Dahls retained the WIC Sugar Beet Equipment line and formed Amity Technology LLC. Amity Technology continues to manufacture the sugar beet harvesters, and it develops air-seeding equipment. It also manufactures and distributes soil sampling equipment and soil and crop management tools.

Air-seeding and tillage is an aspect of no-till or zero tillage farming, which emphasizes sustainable agriculture without disturbing the soil. It also has potential to reduce the volume of water in the soil and to decrease erosion.

No value has been reported for AGCO’s investment. The transaction is expected to take effect this year. The new venture will be headquartered in Fargo, N.D., where Amity has its offices.

“This latest agreement underlines AGCO’s strategy to expand and improve its product offering to the professional farming sector worldwide,” stated Martin Richenhagen, AGCO chairman, president and CEO.

“Amity, Wil-Rich and Wishek have a strong track record for developing innovative products that improve the productivity of the farmer,” he continued. “We believe the combination of Amity’s product innovation with AGCO’s worldwide distribution resources will create a successful alliance. The Amity air seeder is ideal for wheat production particularly in North America and Eastern Europe and will help complement AGCO’s other product offerings within those regions.”

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