Preliminary Market Analysis for a New Hybrid Electric Farm Tractor

Abstract

Asurveywas administratedwith 101 participants from the agriculture communities in California and Texastoanalyzepotential market acceptance for a hybrid electric farm tractor (HET) and to identify factors influencing purchase decisions. The preliminary results suggest that reliability is a deterministic factor and famers are willing to pay more for a reliable unit. The primary benefits of hybrid technology, namely fuel efficiency and reduced air pollution, are not major factors affected purchase decisions. Probit analysis results show that a farmer with more than 50 years work experience is less willingto purchase an HET. Those who are willing to pay a high maintenance cost are more likely to purchase an HET. However, farmers' age has a stronger impact such that even an older farmer may budget a relatively high maintenance cost, he is less likely to purchase the HET. Successfulmarketing strategies of an HET rely on customer education help them understand the farm-level benefits of using hybrid electric technology.