Hello, and good morning to everyone joining us here in person in New York City, and good morning, good afternoon, and good evening to all those joining live via webcast or on the globe. We are so excited for you to be joining us today. My name is Josh Beal, and I'm the Director of Investor Relations for Deere. In 2020, Deere launched Smart Industrial. Today, approximately halfway through the decade, we're excited to be here with you to share the tremendous progress that we've made on this journey and highlight where we believe it will take us over the next five years. Before we begin, a quick reminder: today's commentary and discussion includes forward-looking statements concerning the future of the company that are subject to important risks and uncertainties.
These include the company's financial and operational goals and LEAP Ambitions, including targeted outcomes, potential benefits of the Smart Industrial Operating Model, plans and projections relating to the company's products and services, capital allocation, strategy for customer retention, growth and market position, acquisitions and/or subsequent integrations, dealer network, and manufacturing footprint. Risks and uncertainties regarding factors that could cause actual results to differ materially are contained in the company's most recent annual report on Form 10-K and subsequent quarterly filings on Form 10-Q filed with the Securities and Exchange Commission. Except as required by law, the company undertakes no obligation to update or revise its forward-looking statements. This event includes discussion of certain financial measures, including shareholder value added and operating return on sales. Additional information concerning these measures is posted on our investor website at investor.deere.com under the Factbooks tab. Now, without further ado, let's begin.
At John Deere, we innovate for humanity. By helping produce food, fiber, fuel, and infrastructure, we work for more than eight billion people on the planet today, and we'll continue to innovate to help our customers be even more resilient, optimize resources, and serve rising demand. Five years ago, we launched Smart Industrial to reshape our business, transforming us into a leading equipment and precision technology company that delivers for our customers, our dealers, our employees, and our shareholders. Our goal? Deliver intelligent, connected machines and solutions that help our customers tackle their toughest challenges to do more with less. That's our purpose. Today, that strategy is working. It's driving real results, real value, and real impact. The people who feed and clothe our communities, build our infrastructure, and power our economies are under enormous strain.
While demand continues to grow, there's rapidly rising costs and a decades-old shortage of skilled labor. These challenges make their jobs harder than ever. Smart Industrial is focused on leveraging a scalable tech stack across all our machines, supporting the full lifecycle of every product, and powering production systems like never before. By doing this, we put the customer at the center of everything and focus on bringing real, tangible value to their business, and this real value comes from efficiency and productivity driven by high-quality equipment fortified with precision and automation, from planting to harvest, and from breaking ground to building roads and infrastructure. In the five years since we've launched this strategy, tremendous progress has been made. Today, more than a million machines worldwide are connected, giving customers real-time insights to make smarter and faster decisions that directly impact their bottom line.
JDLink Boost, our satellite connectivity solution, keeps machines connected when every minute counts. And the John Deere Operations Center now spans 500 million Engaged Acres, fully established as the largest, most collaborative digital operating system for modern agriculture. And it doesn't stop there. We've also expanded our digital tools to earth-moving, road building, and landscaping, helping our customers manage fleets, monitor job sites, and integrate technology across more equipment. For decades, finding skilled labor for complex work has been a challenge in every industry we serve. That's why we've brought automation to where it matters most. With these complex jobs, our precision technology turns new operators into highly skilled operators that are more productive, more efficient, and more consistent season after season and job after job. Technologies like See & Spray and ExactShot reduce input costs and minimize environmental impact.
Predictive Ground Speed Automation and Harvest Settings Automation enhance throughput and productivity, ensuring a high-quality crop gets harvested in the optimal time frame. Our autonomous and electric platforms are transforming both construction and agriculture by meeting customers' needs with fewer resources. And SmartGrade eliminates rework and earth-moving solutions by ensuring the job gets done right the first time. We're optimizing operations and making sure that every hour, every drop, every seed, every pound, and every pass counts. These solutions don't just solve immediate problems. They support sustainable profitability for our customers for the next generation and beyond. With investments in high-impact technologies, we're just getting started. We see over $150 billion of additional economic value to unlock for our customers. And these investments, combined with our legacy of disciplined execution, are fueling growth engines well into the future.
That's the scale of what's ahead, and John Deere is ready to lead. We're not just building machines. We're building a smarter, more sustainable future, one that delivers more value to our customers and more growth for our stakeholders. We're leaping ahead now and for the future.
Please welcome Chairman and Chief Executive Officer John May.
Good morning. On behalf of the entire Deere team, thank you for joining us today. Whether you're here with us in person or joining remotely, I want to extend my sincere gratitude for the trust and partnership you've shown our company. We're coming together at a very pivotal time, one marked by significant change and exciting possibilities. Today, we'll highlight how Smart Industrial continues to position Deere to embrace opportunities, fueling our growth, and delivering lasting value to our customers, dealers, employees, and shareholders. We'll discuss the progress we've made so far and the promising future ahead. We've made lots of progress, and we have a really bright future. But above all, I hope you leave here with a clear understanding of why our confidence in Deere's future is stronger than ever. Let me begin by reflecting on where we started.
Five years ago, Deere took a bold step launching Smart Industrial. This wasn't simply a matter of repositioning or tweaking a business model. It was a decisive effort to transform our company for the benefit of our stakeholders. The key drivers for this transformation are just as prevalent today as they were five years ago. But the challenges have gotten bigger. The resources required to produce food, fuel, and infrastructure are becoming scarcer, more expensive, with labor shortages increasing, especially among skilled workers. At the same time, increasing energy demands and the worldwide push for energy security are making breakthroughs in sources of power more critical than ever. Pairing that with the global population increases and rising incomes, the demand for agricultural commodities continues to increase. Global population increases also heighten the need for improved infrastructure, from more buildings to expanded transportation networks.
The solution to this global challenge remains clear: we must help our customers do more with less. Smart Industrial is specifically designed to meet this goal by leveraging advanced technology with Deere's portfolio of great equipment to unlock improvements in customer productivity and make their operations more sustainable. In doing so, we're dedicated to building a more resilient and profitable organization, one prepared to meet future challenges and address new opportunities as they arise. Our Smart Industrial operating model is built upon three foundational pillars that continue to guide our progress and shape our future. First, we restructured our business to focus on our customers' distinct production systems. This marked a fundamental shift in our approach to prioritizing value creation for our customers, which leads to more value for our shareholders as well.
Every day, our teams are hard at work, committed to understanding and tackling the unique challenges our customers face each season in the 10 production systems that we serve. Within each of these industries, we're carefully evaluating where the most promising opportunities lie and channeling our investments into the areas that we believe will unlock the greatest value. We expect this targeted approach to not only improve customer productivity and sustainability but also support stronger profit margins for their businesses. As a result, we've significantly strengthened our position within each of these distinct production systems over the past five years, supported by the strength of a dedicated world-class dealer channel, and this is only the start. We firmly believe that even greater opportunities lie ahead. Next, we centralized our technology stack, enabling us to rapidly deploy cutting-edge solutions across all of our business units and markets.
Our journey into precision technology began more than 25 years ago, and since then, we've developed a fully integrated suite of technologies that addresses real-world customer challenges every single day. We are also empowering our customers to boost productivity by digitizing their operations with the John Deere Operations Center. This platform has experienced remarkable growth, and today, it's providing value to growers on more than 500 million acres worldwide. By consolidating our technology stack, we're positioning to seamlessly extend this powerful blend of integrated technology and data solutions across more production systems and more geographies. Finally, we've strengthened our commitment to supporting our customers at every stage of their equipment's lifecycle. We've built a strong foundation of robust data-driven services and proactive support that allow our customers to get more value from their investments over time. Additionally, John Deere Financial further manifests this through flexible financial solutions.
We expect this comprehensive approach will lead to greater adoption, increased utilization, and stronger renewal rates for our advanced solutions and support our growth ambition. But it's our people who truly make the difference. By uniting top-tier industrial, mechanical, electrical, and software engineers with market and functional expertise in the industries that we serve, we are firmly committed to delivering breakthrough innovations and developing advanced solutions that solidify our competitive edge and fuel our ongoing growth. The expertise and dedication of our teams empower us to anticipate industry shifts swiftly, respond to changing customer demands, and establish new standards of excellence. This collective talent is foundational to our transformation and continues to unlock greater value for our customers and shareholders year after year.
Building on the momentum we've gained through our focus on the three foundational pillars, it's important to reflect on how these strategic shifts have shaped our broader vision. We introduced Smart Industrial with the belief that it would serve as the foundation for sustainable growth and innovation. Our goal was to empower Deere to consistently deliver outstanding value for our customers, our shareholders, and other stakeholders, positioning the company for long-term success. Looking back, it's clear we made the right decision. We believe that Smart Industrial continues to be, without question, the right path forward. Since 2020, our commitment to operational excellence, paired with a strategic focus on maximizing our technology investments through disciplined capital allocation, has driven significant structural improvements in Deere's profitability. We believe these achievements have truly distinguished us from our peers.
We've built a framework that enables us to innovate and invest at higher levels regardless of where we are in the cycle. And our strong operating performance and consistent cash generation provide a solid foundation that fuels sustainable and profitable growth both organically and through targeted acquisitions. This is far more than just incremental progress. It represents a true transformation of our company and the industries we serve. We remain confident in our ability to continue to unlock $150 billion of economic value for our customers, fundamentally reshaping how they operate and compete in an increasingly dynamic environment. Looking ahead, we are well-positioned to accelerate this value creation, leading our industries into a new era of innovation, productivity, and sustainable growth.
As we reflect on our Smart Industrial journey, both our progress to date and the opportunities ahead have inspired us to sharpen our focus on the key drivers of success for the remainder of this decade and beyond. Over the last several years, we've talked about our LEAP Ambitions. These goals gave us clear benchmarks aligned with our strategic pillars, enabling us to effectively track our progress throughout the Smart Industrial transformation. As highlighted in the video, we believe these ambitions have delivered tremendous results. We've now connected over 1 million machines. Our Operations Center covers 500 million Engaged Acres, and our portfolio of solutions and levels of customer adoption have grown across every Production System. We've created a robust infrastructure that connects us to our customers, giving us the opportunity to accelerate the benefits of automation and autonomy across Production Systems.
Importantly, we've also laid the groundwork for a new business model that can help our customers adopt and benefit from technology more quickly. Now, as we look ahead to the second half of the decade, we've refined our LEAP Ambitions to guide us through the next phase of our journey. Let me briefly outline what you can expect from today's session. We'll begin with an overview of the key metrics that will define our success for the next five years. You'll hear from our business unit leaders about the growth drivers in each of their areas. We'll also take a closer look at key enablers of this growth, including our technology stack, Lifecycle Solutions, SaaS, and John Deere Financial. Throughout the morning, you'll see Smart Industrial in action, demonstrated across Production Systems, product lines, and customer solutions. We reserve time at the end of the morning for your questions.
In closing, I want to reaffirm our commitment to serving our customers and advancing Smart Industrial. We stand on a strong foundation with passionate teams and a bold forward-looking mission. We're not just ready for the future. We're building the future. Our capabilities and readiness are unmatched in the industry, and our mission is simple: help every customer do more with less. We believe we have the right strategy and team to achieve our goals, and we believe we are positioned to deliver accelerated, profitable growth that benefits customers, shareholders, and the world we serve. Now, I'd like to welcome Josh to the stage to provide a deeper look into the structural progress we have made and the roadmap that will guide us into the future. Josh.
Thanks, John.
Our original LEAP Ambitions established ambitious four and eight-year goals, all aimed at achieving better financial and sustainable outcomes for our customers and Deere. These ambitions set the direction of travel for Smart Industrial. Today, we find ourselves halfway through that journey to 2030. Over the past few years, we've delivered better performance than any time in the past across all points in the cycle. These results have demonstrated the resilience and effectiveness of our strategy, affirming the importance of staying focused on long-term value delivery amidst near-term volatility and uncertainty. Our original LEAP Ambitions included a broad set of goals that spanned all segments of Deere, focusing on each of our business units, fortifying building blocks for unlocking customer value in the Production Systems they serve. Whether that be connectivity, digital engagement, automation, or autonomy, we've seen progress on all fronts over the past five years.
And as we turn to the remainder of the decade, we're building on that foundation, shifting our focus to accelerating customer value delivery, and that's expected to fuel growth. We've refined and simplified our LEAPs to enhance focus on achieving these outcomes. Let's begin by reemphasizing what isn't changing. As John mentioned, our confidence in Deere's opportunity to unlock over $150 billion in customer economic value has only grown stronger. You've heard about the need to do more with less. We knew this five years ago, and it hasn't changed. However, there are a few things we didn't fully appreciate then that we better understand now. First, the need to do more with less has only grown more urgent. Just look at corn and soybeans, for example, producers who have the challenges they've seen with rising costs, higher interest rates, and volatile commodity prices, to name a few.
Second, we didn't fully appreciate the depth and breadth of opportunity in production systems beyond corn and soybeans. Through the system-level lens that we've brought to value discovery over the past few years, time and time again, we've identified tremendous opportunities across the suite of industries we serve that exceeded our original expectations, from small grains and high-value crop production to commercial landscaping to earth-moving, road building, and beyond, which leads us to our third learning: Deere's unique combination of product portfolio breadth, integrated technology, digital solutions, and a world-class dealer channel not only strategically positions the company to help our customers address these challenges in corn and soy, but can be efficiently leveraged to other production systems to unlock more value than we originally imagined.
All this led to the pivot that John mentioned, our vision of accelerating value delivery and value unlocking solutions, which we expect will in turn accelerate Deere's growth over the next few years. This is a natural progression from the foundation, including a broader base of connected machines, unmatched levels of digital engagement, continued introduction, adoption, and utilization of advanced technologies, and expanded capabilities both within Deere and our dealer channel to maximize customer value. The North Stars that will lead us are reflected in the aspirations of our refined LEAP Ambitions. These are efforts that are expected to transform our customers' operations and outcomes, ultimately helping them do more with less. The list of aspirations is small and targeted, but highly impactful as they're applicable across all Production Systems that we support. To start, we'll continue delivering differentiated equipment solutions tailored to specific operational needs.
Furthermore, we'll ignite automation that leads to full autonomy and provide actionable insights to empower better decision-making. Comprehensive lifecycle solutions will maximize uptime and reduce total cost of ownership, and the combination of all these efforts is expected to enhance customer profitability and enable sustainable outcomes, making them more efficient, more productive, and more resilient. In short, our aspirations position us to deliver on a few targeted outcomes by 2030, with growth as our central focus. We anticipate sustained company profitability and asset efficiency so that our business remains financially robust while maximizing resource utilization. We also expect continued growth in digital engagement, both on the farm and beyond. The suite of outcomes is designed to measure our progress, foster accountability, and guide investments that support long-term success.
Ultimately, our strategy is about delivering greater value to customers, shareholders, and other stakeholders, fueling innovation, and maintaining our leadership position in the industry as we move towards 2030 and beyond. It's important to note that the accelerated delivery of economic value to our customers can continue to support their positive, sustainable outcomes. Through technologies like See & Spray, ExactShot, or grade control, we remain committed to improving our customers' cost efficiency, making them more productive, while simultaneously minimizing their environmental footprint. We continue to focus on win-win opportunities for sustainability that have positive impacts on people, planet, and provide value to our customers and the company. Our biggest impact on sustainability is in our customers' operations, which is why we aspire to reduce our customer greenhouse gas emissions through advanced equipment and technology. Furthermore, our greenhouse gas reduction targets remain unchanged.
By 2030, we aim to reduce both upstream and downstream CO2 equivalent emissions by 30% and operational CO2 equivalent emissions by 50%, in each case compared to our baseline year of 2021. Progress updates will be shared in our annual sustainability disclosures scheduled for release early next year. Now, I'd like to spend a few minutes talking in greater depth about our 2030 targeted outcomes, and I'll start with growth. We've demonstrated a track record of consistently delivering superior growth and shareholder value, outperforming world GDP and U.S. GDP benchmarks. From 2000 to 2009, Deere achieved a compounded annual growth rate on net sales, or net sales CAGR, of about 7%, followed by 5% in the decade from 2010 to 2019. Most recently, during the period of 2020 to 2025, Deere sustained robust performance CAGR of about 4%, despite navigating through significant market volatility.
Looking ahead, we've set a new target to grow our business at a 10% net sales CAGR from 2025 to 2030, reflecting our commitment to accelerate customer value delivery. Combined with the growth that we've already delivered since the start of the decade, our targeted sales growth CAGR from 2020 to 2030 would exceed global GDP projections. Our strong sales growth over the years is directly related to the increases we've seen in our shareholder value-added metric for the equipment operations. We generated over $6 billion of SVA from 2000 to 2009, followed by nearly $20 billion from 2010 to 2019. Since we launched Smart Industrial, we've delivered an impressive over $30 billion of SVA in just six years, exceeding the total value created over the previous two decades combined.
Our targeted sales growth through the end of the decade would drive SVA generation even higher, reinforcing our commitment to continued shareholder value creation. Now, let's focus on how we plan to deliver our sales growth target. Our incremental addressable market opportunity, the quantified value of enabling customers to do more with less, is the driving force that underpins our growth algorithm, serving as the foundation for our strategic initiatives. Later in the presentation, the leadership team will share examples of how we plan to unlock growth above trendline performance, and we see four primary drivers for this growth. First is product leadership, which is driven by advanced solutions designed for our target markets and drive regional growth opportunities for Deere. While this has always been our focus, the advancements under Smart Industrial have made these opportunities clearer, more compelling, and we believe more achievable.
Second, Lifecycle Solutions, which increase customer value across the entire life of our products and services by maximizing uptime and reducing total cost of ownership via lifecycle service agreements, aftermarket growth, and precision upgrades. Third, SaaS or solutions as a service, where accelerating adoption, utilization, and renewal will help scale customer outcomes and unlock value more rapidly across more acres, more job sites, and geographies. We've seen early successes with this new business model, and SaaS remains an important initiative as it enables broader technology utilization. Fourth, we expect to complement these efforts with inorganic growth, expanding our technology capabilities and unlocking value through complementary M&A that broadens our market positions, product portfolio, and footprint, further enhancing our ability to deliver value to customers. I do want to take a moment to address one additional change to our LEAP Ambitions and our growth goals specifically.
Our previous LEAP Ambitions targeted 10% of revenue coming from recurring sources by 2030. While we've seen success with our SaaS business model, the combination of a softer ag market, the time required to build the infrastructure to support a SaaS model, and more disruptive solutions taking longer to adopt have shifted out the estimated timeframe to reach the 10% threshold. While a timeline to achieve the target will extend beyond 2030, our work in progress over the last five years has solidified our belief that this level is attainable in the long term. The customer benefits of a SaaS model remain compelling for a number of reasons.
SaaS makes technology more affordable for customers by lowering upfront costs, paying only what you need, more accessible via the ability to upgrade equipment with new technology, and more adaptable through flexible offerings that meet the unique operational needs and get better over time. While many customers have initial skepticism over a new way to pay for technology, we've seen numerous examples over the past few years of customers embracing the approach once they've seen the demonstrated tangible value that our solutions can provide and how we're sharing in that value creation with them. As one customer recently said, "I'm more than willing to pay Deere $5 per acre when the technology's saving me $15." Given feedback like this, we continue to be excited about the recurring growth prospects in front of us, which align with our commitment to accelerate overall revenue growth to drive enhanced value for shareholders.
Customer engagement with technology, grounded in their digital utilization, continues to be a key enabler of growth. We've previously shared examples of how we've leveraged our centralized Tech Stack across the enterprise, and you'll hear more about that today. As we scale and expand, measuring digital engagement remains an important performance metric for both the breadth and depth of precision utilization and value realization. Engaged Acres remain the foundational measure of our customers' use of the John Deere Operations Center. And Highly Engaged Acres continue to be important for evaluating whether our customers are fully utilizing our technology and realizing its value potential to increase efficiency on their farms. Since 2020, we've more than doubled the number of Engaged Acres, achieving significant growth in all geographies, reaching our 2026 LEAP Ambitions target a year early with over 500 million Engaged Acres globally, of which 30% are Highly Engaged.
Our goal is to continue expanding engaged acres to 600 million by 2030 and to increase the percentage of highly engaged acres to 50%. As we build out and integrate the John Deere Operations Center platform across our businesses, we expect it to become a core element of how our customers operate. Consequently, we're introducing a new metric: unique active monthly digital users. Rolls off your tongue. This metric will expand the John Deere Operations Center engagement tracking from the owner to the fleet manager, the machine operator to the accountant, and many others across production systems, including construction, forestry, and turf. We have about 400,000 unique active monthly digital users today, and our goal is to reach 1 million by 2030. Now, how do we make this all happen?
Our aspirations and outcomes will be realized through the coordinated efforts of our business units, each of which operates from a unique starting point and set of priorities, yet all are deeply aligned in their commitment and shared mission. By leveraging the strength in our strategy and shared infrastructure to foster deep collaboration and innovation, we can address the diverse needs of our customers more effectively and deliver impactful solutions at scale. All of this is enabled by a centralized tech stack that streamlines technological development, a lifecycle organization dedicated to maximizing customer success at every stage, and our financial arm, John Deere Financial, which has steadfastly supported our customers through market cycles over decades, making doing business with Deere easier and more seamless. These assets not only differentiate us in the marketplace, but position us to respond quickly to emerging opportunities and challenges.
As we accelerate our revenue growth and expand our share of IAM, or incremental addressable market, we continue to make strong progress towards enhancing our margins. Before we discuss the OROS target, there's insight to be gained in reflecting on the margin journey of the company, specifically our equipment operations over the last few decades. In the decade of the 2000s, our average OROS, operating return on sales, was about 6%, or excuse me, was about 8%. However, it's important to note that sales more than doubled in the prior 10 years. During this decade, we introduced our stretch line concept, defining margin and capital return goals for each point in the cycle, with the intent of delivering better through cycle margins and asset efficiency. Moving to 2010 to 2019, average OROS increased to about 12%, driven by global expansion, the acquisition of the Wirtgen Group, and disciplined execution.
This decade ushered in the first generation of precision ag automation solutions like ExactEmerge, ExactApply, and the John Deere Operations Center. We also acquired Blue River Technology, which brought capabilities such as machine learning, computer vision, and robotics in-house. During this time, our sales grew by over 70% compared to the previous decade. Since the launch of Smart Industrial in 2020, we've delivered average margins of about 17%, a result of our focus on customer production systems, our centralized tech stack, capital allocation, and our foundation in product leadership and operational execution. This steady improvement highlights our ability to grow, adapt, execute, and deliver stronger results over time. In fact, if you look at our sales during this period, the last six years, compared to the previous six years, we're up nearly 50%, and we remain committed to our goal of delivering 20% through cycle OROS by 2030.
But to ensure we maintain asset efficiency, we additionally aim for 45% operating return on assets. With the margin expansion we've seen over the past few years, a natural question may be, why not higher? We feel good about our ability to deliver margin, and prior to the headwind from tariffs, the equipment operations had nearly reached 20% at mid-cycle. Post-tariffs, we have additional work to do, but our track record, along with the growth prospects in front of us, gives us confidence in our ability to further margin expansion while reinvesting in the business to drive growth. Our compensation plan is closely aligned with these financial outcomes. We raised the bar a year ago to ensure our teams are focused on reaching this goal and are incentivized accordingly.
Importantly, we believe we can deliver more value in absolute dollars, absolute operating profit, absolute Shareholder Value Added, by not only achieving these margins while maintaining asset efficiency, but also meaningfully growing the business at the same time. Furthermore, this is an and proposition, not an or proposition, with the expectation of delivering best-in-class margins and growing at a faster rate than we have in the past or compared to the industry or broader economy. As we move forward the next hour, we'll dive into the key elements of our growth strategy, providing detailed reviews of each business. We will contextualize the critical impact of how our enabling functions demonstrate how they are foundational in giving us strength to drive and generate further customer value.
Our intention is for you to leave here today with a deeper understanding of our business and unique position to help our customers do more with less, pushing the boundaries of productivity, sustainability, and ultimately enhancing value for our shareholders. With that, I'm pleased to invite Deanna and Justin to the stage, who will lead you through Production and Precision Ag and Small Ag and Turf, sharing further insights into the opportunities ahead and our plans to make them a reality.
Thanks, Josh, for that great setup. As we contemplate growing the business, let's first talk about the breadth of agriculture. Frankly, the scale of agriculture is often underappreciated. Take, for example, corn and soybeans in the United States. How many individual plants do you believe are planted each year? Often, when we ask this question, our audience says a billion or maybe 10 billion. Sometimes sheepishly, someone will say quietly a trillion, but more with a question mark than with conviction. The answer is an astounding 12 trillion. 12 trillion individual plants every year in the U.S. alone, probably more than 100 trillion globally. That is the scale of agriculture.
This massive scale makes agriculture a multi-trillion-dollar industry. The upside to ag optimization is huge, and it's not just about optimizing corn and soybean crops either. It's about bringing precision to all of the major production systems all around the world. John Deere has the equipment, the technology, and the intelligence to make that happen. We talk about this as our incremental addressable market, the value that we can unlock for all of our customers. It's not just a number. It's a direct measure of how our innovations, expanded market reach, and continuous improvements make a real difference in our customers' economics.
Whether that's orchards and vineyards in California, Spain, and Italy, the vast fields of the Brazilian Cerrado, Canada and Australia, and dairy and livestock operations tucked into towns across Europe, and lawns and golf courses found in every corner of the world, and of course, across the heartland of the United States of America. We've talked about the $150 billion as the value we have a line of sight to. However, given the vast scale of our industry and the challenges it faces, we believe this is just the beginning.
The scale of agriculture and the scale of our portfolio of equipment, technology, and support systems gives us a unique opportunity to grow our impact on this great industry. We intend to drive growth in the ag and turf business through three ways. First, the geographic expansion of our full production system solutions. Second, extending our tech stack to more production systems. And finally, when we create more value for growers, it means more revenue and more margin for them and more revenue per unit for Deere. In the next several minutes, we will show you how this comes to life across very different customers in very different parts of the world. While they are all very different, they share similar challenges. Let's talk quickly about what six of those common challenges are. First is labor availability.
Across the globe, our customers struggle to find the people they need to help do critical jobs. For example, in 2024, the U.S. ag industry was short 2.4 million farm workers, and the skilled labor gap keeps growing.
Second, rising costs. Expenses on everything from seed and fertilizer to feed, fuel, and labor continue to be elevated, so reducing and optimizing inputs is critical.
Third, growers have narrow operating windows to get important work done, and missing those windows can hurt yields.
Fourth, as operations scale and the desire for precision grows, our customers face increasing operational complexity.
Fifth, job quality matters a lot. When work isn't consistent, it impacts crop health, yields, costs, and deadlines. It often leads to rework and wasted inputs.
And finally, to help overcome all the other issues, our customers increasingly want to make more data-driven decisions. John Deere's equipment, technology, and services help our customers solve all of these problems, and our scale allows us to leverage these solutions to customers across many production systems all over the world affordably. We want to show you how we're doing this by taking you through several examples of geographies and production systems across every job step where this is real today. Let's start with one that you're probably familiar with, soybeans in Brazil, where we all had you together earlier this year.
Thanks, Justin. You'll remember Brazil's tropical climate lets farmers grow multiple crops a year. But this rapid pace, especially during the rainy season, means they need equipment that works efficiently despite unpredictable weather and labor shortages. Crop protection is a major expense there, with Brazilian sprayers running on average 14 spray passes per year, compared to just three for corn or soy in the U.S. And crop protection products make up about 30% of total annual costs in the Cerrado region. John Deere is stepping up with advanced equipment and technology to help farmers meet these challenges head-on. We're bringing all new sprayer platforms to the market, designed to help ensure the task of nurturing and protecting this vast crop is done with productivity and accuracy. Take the new 230M sprayer. It's designed using global modules and built in Brazil for Brazil's rugged terrain and fast coverage.
Individual nozzle control, leveraged from our existing sprayer tech stack, shuts off individual nozzles to prevent overspray and overlap, which can save customers 2%-5% on chemicals. This sprayer is the first in a series of launches of new application products and technologies that will deliver value for customers and growth for John Deere. One of those technologies that will be available for our Brazilian sprayers is See & Spray. See & Spray was launched in the U.S. in 2021 and Brazil in 2025. This product uses cameras to identify weeds and sprays only where necessary. There can be a reduction on average herbicide usage by over 50%, while still achieving the same weed hitting rate as broadcast application. This upgrade gives farmers even more flexibility between broadcast and targeted spraying, boosting efficiency. Connectivity is a game changer too.
With JDLink Boost powered by Starlink, even remote farms get reliable satellite internet for near real-time machine monitoring and expert support. All of this data flows into the John Deere Operations Center, where farmers can easily track performance and manage fleets. Our dealer network in Brazil is also second to none, having the scale and capabilities to sell and support these advanced machines and technologies to maximize uptime. Bottom line, John Deere is helping Brazilian soybean farmers grow more and spend less while making sure every minute counts. If we look at a model farm with 7,400 acres in Mato Grosso, with a double crop operation of soy, then corn, using these technologies, the customer has the potential to experience an incremental profit per acre of $115 annually, $43 in savings and $72 in additional revenue.
Considering Brazil has approximately 50 million acres of double-cropped agriculture, if all of these acres were utilizing Deere technologies, the estimated value creation is over $5 billion. Just like Brazilian soy farmers are looking to Deere to help them with labor and tight operating windows, our global dairy and livestock producers struggle to find the time to get everything done in a quality way in the right windows of time as well. Our global scalable technology stack can be extended to help them too.
Thanks, Deanna. Dairy and livestock producers across the United States and Europe make up a trillion-dollar-plus industry generated from a herd of over 1.5 billion cows. These producers face challenges with qualified labor availability and optimizing the quality of field, excuse me, feed, while minimizing costs through job quality. Many farms depend on seasonal or inexperienced operators, which means owners are often juggling many tasks and many personnel simultaneously. Baling is one of the major jobs, and while it's relatively simple, it's very time-consuming and requires constant operator attention to make sure the bale shape and weight are consistent and details on every bale are documented. To support these customers, we're combining existing elements of our enterprise technology stack with targeted investments and customization to support automation and documentation. For example, a driver can use AutoPath to define the optimal way to navigate through the field.
Our weave automation technology then creates the perfect bale by using a baler-integrated steering mechanism to automatically and precisely fill the bale chamber side to side, which eliminates the need to manually weave while driving. Speed automation automatically stops the tractor when the bale wrapping begins, and gate automation automatically opens and closes the baler tailgate for bale ejection. All of this reduces lags in productivity. This adds up to, on average, more than 75% reduction in the operating activity, which allows for near hands-free baling experience for the operator. It enables inexperienced and experienced operators alike to make the perfect bale every time, all day, every day. On average, our customers make 8% more bales per hour and increase crop bale for each gallon of fuel consumed by more than 4%. But we aren't done.
Once the bale is completed, agronomic and operational information is transmitted to the John Deere Operations Center, where individual bale information such as weight and moisture, field totals, and yearly totals are available for future decision-making. Now, that's a big deal because there's often multiple harvests on the same hay acre each year. This technology racks up a lot of acre passes in a single year, which brings real farmer value time after time. Now, these same themes apply for our small grain squares. Deanna, can you walk through how these customers are benefiting from our technology?
As we continue, let's stay in Europe, but also add Canada and Australia as we look deeper at small grains production. Given their larger scale operations, small grain farmers across these regions face mounting operational complexity, particularly during harvest. Tight labor markets, unpredictable weather, and narrow harvest windows compound the challenge of managing multiple machines and operators while maintaining grain quality and throughput. John Deere is helping farmers overcome these hurdles through advanced equipment and integrated technology solutions that simplify operations and maximize productivity. Let's start with advanced equipment. The new S7 Series and X9 Series combines deliver unmatched harvesting performance, blending power, precision, and efficiency. Both combines feature advanced automation technologies like Predictive Ground Speed Automation and Harvest Settings Automation. Combine automation is proving to be a real game changer. These solutions use real-time data and predictive algorithms to adjust settings and speeds automatically.
This means more productivity, less grain loss, better quality, and fewer manual tweaks. These technology solutions help combines run at full capacity, even with newer operators behind the wheel, and it's only possible because of the technology stack at John Deere. The tech uses satellite imagery ingested into the John Deere Operations Center, fused with onboard cameras to proactively operate the combine for the density of the crop that is in front of it. Without the infrastructure of Operations Center and the history it has of the field's terrain, knowing the height of the crop would be much more difficult. This technology lightens the load, reduces fatigue, and helps everyone perform at their best, which is critical when skilled labor is hard to find and timing is everything.
In fact, this past harvest season, we visited a large customer running the tech, and they saw over a 20% increase in machine productivity in terms of acres harvested per hour when using Predictive Ground Speed Automation compared to when they manually harvested. Additionally, they used Predictive Ground Speed Automation in the higher yielding parts of the field, leading to a more optimal harvest and greater than 30% increase in throughput. This notable increase of bushels harvested per hour helps demonstrate the real value of the ultimate technology package to the customer. Deere is sharing in the value by these automation technologies through an annual license model. This enables customers to experience more value season over season as the solution gets better over time.
In addition, across our fleet of Model Year 25 Ultimate Technology machines, customers are also realizing over a 10% increase in fuel efficiency in terms of bushels per gallon. This translates to real savings in inputs to get their grain tanks filled with the grain grown throughout the production cycle. The Operations Center is key to managing operational complexity, giving small grains growers a digital hub to track machine performance, tweak settings remotely, and make more informed decisions. By connecting everything, they can also manage logistics better, including people, equipment, and grain. Operations Center also keeps dealers connected for quick diagnostics and support, minimizing downtime with every minute counting. In short, these innovations are making harvest simpler, more productive, and less stressful, and we expect they will support our growth in the combine market globally. Technology is critical on these large-scale grain farms.
These same technologies are also helping our other Production Systems customers that share the same challenges with labor, input, management, and time.
Thanks, Deanna. As we highlighted earlier this morning, Smart Industrial isn't limited to large-scale row crops, dairy and livestock, and small grains production. It's creating measurable value for customers in new segments and new geographies who face similar challenges and have a shared need for technology, connectivity, and productivity. Let me give you three examples. First, let's go to India. We serve contractors who work across many small fragmented farms and can afford to invest in equipment and technology as they cover many more acres than an individual grower. These contractors are increasingly turning to the John Deere Operations Center, which is now used by more than 10,000 Indian contractors to plan and analyze their jobs digitally. When they go into the field, contractors benefit from Deere's connectivity suite, which enables fleet-wide monitoring and remote diagnostics.
This reduces downtime and helps machines operate at peak efficiency, even across widely dispersed geographies. It also enables digital fieldwork documentation, which, as a result, lowers the need for in-field supervision. Starting later in 2026, every new self-propelled machine that we sell in India will be connectivity-enabled, which will transform how farming is done and who can benefit from it. Now, with the annual Indian tractor industry exceeding 900,000 new tractors, the combination of our connected digital offerings with the growing adoption of our popular 5E Series and 5D Series tractors presents significant opportunity for volume growth in the region. A second example is professional landscape contractors in the United States. This is a $200 billion-plus market that's currently experiencing significant consolidation and professionalization. Leading companies often now operate in dozens of markets across thousands of sites, managing hundreds of thousands of customers, workers, and machines.
This obviously creates massive complexity and a massive opportunity for optimization. We're helping drive this optimization with the ProLandscape Operations Center, but tailored specifically for landscape contractors. ProLandscape's crew management tools let managers see job progress, equipment usage, and crew locations in real time, thanks to JDLink technology. Managers can track how long jobs take, boost crew efficiency, and place the right people where they're needed the most. It also integrates AI, using publicly available satellite imagery to create quick, accurate property measurements, making bids more precise and planning easy without ever having to deploy a team in person, and speaking of not deploying a team, in CES in 2025, we showed an autonomous stand-on mower. With labor accounting for $50 billion of cost in this industry, autonomy is going to be revolutionary, allowing PLCs to service more properties and scale their business.
Third, let's talk about high-value crops in the United States and in Europe. Few people realize that in many countries, the value of these high-value crops is actually larger than that of grains. With huge challenges in labor availability, input cost, and regulatory pressure, Deere's automation and sensing technologies can create immense value. For example, our autonomous 5ML Orchard Tractor and GUSS autonomous sprayers are setting new standards in productivity and safety. GUSS, our autonomous sprayer, has alone logged 600,000 autonomous hours and sprayed over 2.8 million acres. GUSS customers can significantly reduce the manpower and machinery needs relative to a conventional spraying operation. Even for a medium-sized operation, they can reduce the number of operators from eight to two and generate an ROI in less than three years.
Customers using our SmartApply LiDAR-based Sense and Act spraying technology, along with that traditional airblast sprayer and full Operations Center integration in places like pistachio orchards, have achieved 60% reductions in chemicals with no loss in efficacy. To put this into perspective, this equals a 36-gallon-per-acre decrease in chemical application, something we can all be really happy about. Across these diverse systems, contractors in India, professional landscape contractors in the U.S., and high-value crop growers all over the globe, Deere's connected equipment, automation, and software platform are scaling globally, expanding our addressable market and demonstrating the power and adaptability of Smart Industrial.
Those are great examples of how our teams have been able to extend our technology stack to new areas of growth. But let's return to something most of you are familiar with Deere talking about: corn growers in the United States. And let's get ready to plant next spring. We all understand that U.S. corn growers are feeling the pinch from rising costs, labor shortages, and the push for more sustainable practices. As farmers are preparing for this spring, we are taking our next step in autonomy: autonomous perception kits. These retrofit kits are available for delivery and use during the spring 2026 tillage season on current and prior model year 8R and 9R tractors. That's right, retrofit autonomy. For customers, this means reduced labor stress, optimized field prep, and more time for other priorities during this critical timeframe. That tillage pass is all about preparing the perfect seed bed.
When it comes time to put the seed into the ground, pairing a John Deere 8R tractor with an ExactEmerge planter offers corn growers a powerful combination of speed, precision, and efficiency. Stay tuned for a big upgrade to this combination coming in February. As we look at costs, fertilizer prices are a large portion of a corn grower's variable costs. That's where John Deere's technology steps in. One standout is ExactShot, which changes the game by applying starter fertilizer right on or near the seed instead of continuously. This targeted method can cut starter fertilizer use by up to 66% while still keeping yields strong. Farmers see fewer stops to refill and lower costs. Like other technologies sold via a license model, ExactShot creates a foundational technology that will get better over time. Today, it allows us to enable precise placement on or near the seed.
We know there will be other uses for precise placement of products at planting, and this flexibility is critical as growers explore alternative products to boost yields. Just like you saw in all of the other examples, John Deere Operations Center is key to the success of corn growers. It helps them make more informed choices with seed and fertilizer decisions. With over 300 industry collaborations, we make it easy for our customers to work with their preferred agronomists, ag suppliers, and partners. Work plans allow a farmer or their trusted advisor to seamlessly send customized plans for each field directly to their equipment. Their John Deere ExactEmerge planter, equipped with ExactShot, executes in the field, all while the job is documented and synced in real time to the Operations Center account. This results in better data, higher yields, and lower input costs.
Talking about cost savings, let's look at our model farm numbers for a representative farm near Central Iowa. Throughout the production cycle, a Deere customer farming 6,500 acres of corn and soybeans evenly split using these technologies could experience total cost savings of $48 per acre. Additionally, yield improvements have been observed with estimated revenue of $24 per acre, bringing the total value proposition of our current offerings to approximately $72 per acre. In the United States, more than 300 million acres are planted each year, with about 180 million acres dedicated to corn and soybeans. Based on this estimate, if all corn and soy acres employ Deere technologies in the market today, the projected customer value unlock could be nearly $13 billion in cost savings and additional revenue for the farmer.
As we reflect on these seven global examples, you have seen the impact that our equipment and technology solutions can have on solving real-world customer problems today and how we are able to leverage the technology across production systems and geographies, making our technology stack even more powerful well into the future. Each of these platforms of foundational technologies, digital tools, automation, and autonomy are scalable globally and across production systems, all solving similar challenges our many different customers face.
And as we continue to introduce more customers to our product and technology solutions, we are also working to ensure that every customer experiences the full value of their investment. In fact, customer success at John Deere is a strategic capability that we're building focused on helping customers maximize value from the solutions they purchase. It's a joint effort between Deere, our dealers, built on proactive support, training, lifecycle services, and digital enablement. And our goals are to close the gap between expected and realized value, to empower our customers to make informed decisions, and to drive outcomes like uptime, productivity, and profitability.
Each one of these examples stands to potentially unlock multi-billions of dollars of incremental addressable market. These production systems and geographies offer Deere opportunities for continued growth in both hard iron solutions and technology offerings. This growth will help us fuel the LEAP Ambitions outcomes shared by Josh. The two model farm examples I gave for Brazil and the United States are only the beginning.
John Deere's commitment to solving customer challenges is the foundation of our success. Through Smart Industrial and scalable adaptable technologies, we deliver product and technology leadership that addresses today's needs and anticipates future opportunities for different sizes and different types of operations globally. Our advanced equipment and digital solutions are designed for flexibility and impact, helping empower customers worldwide to boost productivity, reduce costs, and help them operate more sustainably, and all of this is supported by our world-class exceptional dealer network, which provides expert support and training, helping our customers realize the full value of their investments with John Deere.
At the same time, we know that we must use our voice so that commodity growers around the world have strong markets for the crops they grow. That's why we are committed to not only providing them with the best equipment, technology, and support solutions, but also simultaneously advocating for expanding markets for their crops. We recently announced that all final Tier 4 engines are compatible with B30-based biofuels, and we presented an ethanol-powered tractor at this year's Agrishow in Brazil. We continue our work in advocacy for bio-based renewable fuels that we believe not only create a cleaner future for all, but a brighter future for agriculture. As we've walked around the world, it should be abundantly clear just how massive the scale of our customer base is, and the potential yet to be unlocked in agriculture and turf is huge.
Based on the foundation of equipment, technology, and support solutions that we have and will continue to develop, no one, no one is in a better position to unlock it. This future unlock positions us to drive growth in three ways. First, the geographic expansion of our full production system solutions. Second, extending our technology stack to more production systems. And finally, when we create more value for growers, it means more revenue and margin for them and more revenue per unit for Deere. There is exciting opportunity ahead for all of us, and we look forward to capitalizing on the growth we see ahead. We're excited to turn the presentation over to Ryan to discuss construction and forestry's opportunity. Thank you.
It's great to be here this morning to review our construction and forestry division and walk through the long runway of opportunity for this business. Many in the room are already familiar with the value creation drivers in our ag business. And while the IAM in agriculture represents a tremendous growth opportunity, sometimes we neglect to highlight the equally impressive opportunity in C&F, which Deere is well-positioned to unlock. Today, the world is investing trillions annually in construction and infrastructure projects. Despite that staggering figure, there remain significant unfunded infrastructure projects, likely requiring additional trillions in funding globally between now and 2040. Whether it's roads, bridges, airports, waterways, and underground utilities, the necessary infrastructure required to maintain our standard of living needs to be replaced or upgraded. Given this, there's an underlying growth trajectory for our business just to get the current work done.
In addition to the infrastructure backlog, there are other significant growth drivers. The U.S. is underinvested in single-family housing since the Great Recession, and at some point, that will have to correct. The massive infrastructure required to build out artificial intelligence capabilities is also driving activity, as is the onshoring of certain critical manufacturing industries. All of this suggests that this industry is going to have solid growth for the foreseeable future. To date, our industry has delivered more projects with more inputs: more labor, more machines, more materials. That's because the construction industry has generated limited productivity gains relative to other sectors, or even when contrasted against our own ag business. When you compare the backlog of future infrastructure and other construction needs against the backdrop of diminishing inputs like skilled labor, you're left with an industry that has to significantly increase productivity in the coming years.
Machines are going to have to do more work and use less inputs. That, coupled with the intelligent use of data to better orchestrate job sites and drive operational efficiency, will be necessary to deliver the required growth. Our construction and forestry division is well-positioned to deliver the much-needed productivity gains for our end markets. Today, C&F participates in three primary production systems: earth-moving, road building, and forestry. Competitively, we hold strong positions in each of these segments as the global number one in both road building and forestry and a number two position in the Americas construction equipment for earth-moving. Our product portfolio for road building and forestry is unmatched, delivering the set of solutions required to complete every step in its production system.
As it relates to earth-moving, you'll see later in our presentation that we are making a historic investment to complete our portfolio, which will offer as robust a lineup of equipment and solutions as there is in the industry. As you saw in ag, we pair our portfolio of equipment with our proprietary software solutions, ranging from our Precision Construction earth-moving platform to our road building operations center and TimberMatic Maps in forestry. The equipment and the solutions, paired with our world-class dealer channel, give us a winning formula for strong growth. The size of continued investment in C&F reflects our expectations for industry growth and productivity unlock, both of which can lead to margin expansion over the balance of the decade.
We expect growth for the construction equipment industry to run at a CAGR of about 5% over the next several years, assuming continued infrastructure investment to replace outdated bridges, roads, airports, and utilities, and the continued need to accommodate the migration from rural to urban and developing markets. Furthermore, we see spend in construction technology growing much faster at a 12% plus CAGR over the same period of time. Our own history shows the C&F business has outpaced the industry, inclusive of M&A, new product introductions, and expansion into new geographies. This strong expected industry growth, combined with Deere's opportunity to deliver more customer value, increase its market share with new products, and utilize M&A, positions C&F with the ability to grow at a faster pace than the industry.
Incremental to that is the opportunity to increase the pace of adoption of technology, which should add both margin and revenue growth potential. Ultimately, the industry opportunity scores perfectly with our mission. We strive to be close to our customers and maximize their job site with a complete portfolio of earth-moving equipment, technology solutions, and lifecycle services. We wake up every day thinking about how we can be best in the industry in helping our customers do the job right the first time, do more with available labor, and maximize their uptime. Next, I want to cover a few of the main strategic focus areas we have in the division that we believe will allow us to capitalize on the growing need for solutions in the industry. With respect to our product portfolio, we'll be introducing our first Deere design excavators to the North American market starting in mid-2026.
This has been a long journey for us to get to this point, and we couldn't be more excited. Design control allows us to respond quickly to customer needs, capitalize on the latest trends, and utilize elements of the Deere Tech Stack. Excavators represent 40% of the market for earth-moving equipment, and our 2026 introduction is the start of the delivery of a complete line of products from one to 50 tons. This is a foundational global design that will allow us to build products in multiple geographies to best meet different customer needs. Different from many in the industry, we will be manufacturing the majority of product for the United States in our Kernersville, North Carolina factory, which has undergone a transformation over the last several years, investing over $300 million in capital and R&D to be ready for this historic event.
We are planning a big launch party at this year's coming ConExpo. We hope to see everybody there. Even with a large focus on excavators, we have continued to invest in refreshing other parts of the earth-moving product line, with 75% of the products having a significant refresh over the last three years. We have allocated more resources to our earth-moving business in order to accelerate our product development and are building an exciting pipeline of new offerings. For road building, some of you may have visited us at the 2025 Bauma in Munich, Germany. There, Wirtgen unveiled over 40 innovations, from the world's most productive milling machine, the X250, which contains two John Deere 18-liter engines, to significant enhancements in our digital solution set, which now has over 3,000 customers onboarded.
Forestry has recently introduced the H-Series, harvesters and forwarders, bringing increased productivity and precision to our wheeled cut-to-length segment of the forestry business. Customer acceptance of these new machines has exceeded expectations, with order backlogs filling nicely. Today, we have a very good parts and service business. The opportunity is to build a great one. We have a three-pillar strategy to grow this portion of our business and to make Deere and our dealers the partner of choice for customer needs throughout the entire lifecycle of our equipment. We are enhancing our predictive capabilities using sensor information and artificial intelligence on machine usage to understand when issues occur and identifying the best course of action to intervene, many times preventing unexpected downtime.
We're improving our designs to increase the reliability and durability of our equipment, and when issues arise, we are enhancing the offerings that customers can select from to keep their machines up and running for the long term. The total cost of ownership of a piece of equipment is at the forefront of purchasing decisions in the industry. We are continuing to evolve our offerings of extended warranty, maintenance, monitoring, and service contracts to meet customer needs. We see tremendous growth opportunities in delivering flexible options to our customers to manage their overall total cost of ownership of their fleets. Many years ago, we had a vision for creating a unique offering of grade control solutions in the construction equipment marketplace. Historically, grade control was sold as an aftermarket solution with offboard and onboard machine elements created and sold through a third party.
These solutions required significant modifications to the equipment and resulted in less robust and precise outcomes for our customers. Over the last several years, we have worked with three major providers of offboard grade control to create an integrated product where we take control of the machine performance, the bucket, and the blade while they continue to provide the GNSS location information on the machine. Our solution, SmartGrade, integrates the critical machine control functionality at the factory, reducing aftermarket complexity and offering a more precise grade outcome. Taking this a step further, most customers have selected and standardized on an offboard technology platform for grade control. This has historically resulted in incompatibility for Deere equipment. With our new agreements, we have taken that incompatibility away.
Now with some, and in the near future with all, a customer can select a Deere piece of equipment irrespective of the offboard platform they have chosen. With minimal post-factory intervention, Deere machines will be capable of working with any of the big three job site platforms and have their grade control interfaces running through our latest G5 display. We're receiving great feedback on our SmartGrade technology in the field. We're at an inflection point in the industry in which precision construction solutions are necessary, given the lack of available and qualified labor. In fiscal year 2025, even with equipment sales down, we have seen a 20-plus% increase in our revenue from our SmartGrade solutions, and we are early in this journey. Let me walk through a real-world example of the savings our SmartGrade solution delivers. First, imagine the site development for a new big box retail store.
A typical construction site for one of these stores consumes about 40 acres. The building itself takes up about three to three and a half acres, but then add parking, access roads, and stormwater retention, and the footprint grows significantly. The site development for a job like this starts with moving dirt, a lot of it. Roughly 300,000 Bank Cubic Yards must be cut or filled for grading, drainage, and utilities. The average base cost for this grading work is about $1 million. Traditional grading begins with surveyors hammering wooden or metal stakes across the site to serve as physical reference points. Operators rely on these markers and make manual blade adjustments as they shape the land. Accuracy depends on the skill and requires repeated checks. The process often takes multiple passes and frequent rework to meet the precise requirements of the site's design. SmartGrade changes everything.
The site's grade design is uploaded directly into the machine's control system. No stakes required. GNSS sensors and hydraulics automatically adjust the blade to match the design grade, and operators see in real time the grade status on the display in the cab. This eliminates manual checking, reduces human error, and increases productivity. And the bottom line result? SmartGrade cuts costs by $0.40 per cubic yard, or around $120,000 on a single project like this retail store example. Multiply these savings by the number of applicable job sites, and you get into the billions of dollars of value creation. There are many other exciting elements of our precision construction platform, including advanced vision and safety systems, machine control, and productivity measurement solutions. These are all building blocks as we move to a future job site where machines are executing the task autonomously.
For digital solutions, I want to start with road building, which has rolled out a digital platform solution for the industry using the John Deere Operations Center. We have taken the incredible foundation that has been built through the John Deere tech stack and added an application layer for our road building customers. We've rapidly evolved from the basic machine information, such as location, hours worked, and fuel consumption, to a robust set of tools that give real-time information on the progress to completion on the job. As I mentioned, we have onboarded over 3,000 road building customers to the operations center. The future is very exciting for our business and for our customers' business. We have a complete product portfolio and ever-increasing offering of precision tools that increase the productivity of milling, paving, and compacting a road, all brought together with an industry-leading digital platform.
On the earth-moving side, we're coming at the digital space from a few different angles. First, we're utilizing the John Deere Operations Center to provide machine data for Deere equipment on any particular job site. Telematics data such as location, work status, idle time, fuel consumption, and maintenance requirements will be visible to the customer through the Ops Center for earth-moving. To supplement the customer's reality of mixed fleets on almost all job sites, we acquired Virtual Superintendent. Virtual Superintendent has a robust set of tools that allow customers to monitor job site productivity on a real-time basis, irrespective of their equipment brand. Given the nature of the earth-moving industry, we're building machine-out tools for John Deere equipment and customer-backed tools that provide job site productivity intelligence on all sites. Let me summarize a few key points before I turn it over to Jahmy.
First, we believe this is a very attractive industry with a solid growth potential, given the amount of infrastructure and other construction work that needs to be done. Second, we believe the industry is at the beginning of a trend of increasing investment in precision machines and data insight solutions to drive an increase in productivity. This has played out before in our enterprise with the evolution of the agriculture industry and the adoption of precision solutions. We have built a robust set of foundational tools through our tech stack investments that we can now leverage to point more towards the opportunity within the C&F division. With the investments we have made in product and solution, excavators, and our Precision Construction platform, to name a couple of many, we should be well-positioned to deliver strong net sales growth and healthy mid-teens margins.
And now, let me welcome Jahmy to the stage.
Thanks, Ryan, and thanks to you all for being here. I think there's never been a better time to talk about the impact of technology in our business, and there's much truth to that notion that the speed of technology change continues to increase. My intent is to unpack the impact and the opportunity that the tech stack that we've built and continue to invest in has within our business. Let's start with a quick reminder of the framework through which we think about that technology stack. Our technology stack is built on foundational elements of data, compute, connectivity, control, and sensing capability that are designed to create value on the farm or the job site and enable the more advanced technologies that you see higher in the stack.
We've been vertically integrated in these core technologies from inception, enabling a high degree of system integration and reuse across our production systems. These foundational elements underpin our potential to create tremendous value. We can connect every machine, regardless of brand, that is involved on the farm or job site, and collect operational data that our customers can use to improve their productivity or profitability. Data that they can share with any advisor they wish, and data that Deere can use to improve or automate the work of the machine itself. It's a virtuous cycle of data collection driving improved decisions and better products. The automation that these foundational elements enables allows us to incrementally move each product closer to a fully autonomous future while creating value every step of the way. Advanced software builds on that foundation to enable even higher performance.
That might be increased precision like SFRTK or increased levels of automation like advanced guidance or 3D SmartGrade. It could also be increased levels of data insights like job site efficiency with Virtual Superintendent, subfield-level profitability and harvest profit, or better seeding prescriptions from their agronomist with Operations Center Pro. We've learned that the tools we create to add value to the farmer often add value to the farmer's advisors as well. The top level of our technology stack is the maximum extension of our capabilities. It's using the full complement of our technology to enable real-time decision-making in our products to make agronomic decisions like spraying the weeds and only the weeds, work optimization decisions like optimizing harvest settings, or machine operating decisions like autonomous tillage, mowing, and haulage.
It's worth noting that this technology depends on operational data collected to train AI models, data that is made available through the foundation of that technology stack. Just as the data is scaling to new applications, so is the hardware and the core software. In the past 12 months, we've scaled our compute and operator interface device, the G5 Display, from our agricultural applications into our earth-moving and road building applications. This has enabled us to introduce guidance technology, for example, using StarFire for snow removal applications with a motor grader. The technology provides the operator knowledge of where the path of the motor grader should be, even in the whiteout conditions that are common in winter.
We will continue to deploy the G5 throughout the product range because it's a key enabler, allowing us to deploy software solutions across the product lines at a pace that we simply couldn't contemplate in the past. As you would have noted at CES this past January, we've also been scaling our autonomy solutions beyond our large ag applications. It's apparent from the commercial mowing autonomy product that we're leveraging the same hardware as we use in the large ag tillage product. What's perhaps less apparent is the machine learning model that is used for perception purposes in the turf product was sourced from that large ag tillage model to start with. That enables us to reduce the amount of data to be collected to train a model for the commercial mowing purposes.
A tree is a tree, no matter if it's in a well-manicured landscape in North Carolina or a wheat field in Kansas. The power of the data collection is also bidirectional. The data being collected for the commercial mowing perception model will also be useful to make that large ag tillage model more robust. Deere's broad portfolio enables us to reinforce model performance with data collected across disparate environments, use cases, and industries. We estimate that each new autonomous application for a product could be 50% faster to market than the one that preceded it. I've discussed the importance of our digital technology and data numerous times, so let's spend some time unpacking that aspect of our technology. Our leading connectivity solutions, whether they're terrestrial, cellular, or satellite, have enabled bidirectional connection to much of the Deere fleet for the last 14 years.
This data platform is already one of the world's richest in the agricultural industry, and given the annual nature of data generation in agriculture, it's very difficult to replicate by anyone, ever. Undocumented growing seasons that occurred in the past are lost forever. In 2024, we processed half a petabyte of data from machines in operation. We achieved scale in this area a long time ago and now have over 10 trillion agronomic and machine measurements in our training data. The front end of this data platform is the John Deere Operations Center. For both the farm and the job site, a digital connection to the work being done is becoming more important and, in many cases, driving equipment acquisition decisions. This statement is supported by the tremendous growth that we've seen in our digital engagement metrics. Engaged Acres have more than doubled over the past five years.
Highly Engaged Acres have doubled over the past three years, and monthly active users are up 33% in the past 12 months. We're continuing to invest in making Operations Center the premier digital solution across Production Systems, and there's no better example than our leverage of the technology stack and Operations Center for our road building equipment. We've been able to use the foundational infrastructure that's made Operations Center the premier digital ecosystem for agriculture to achieve the same outcomes in road building. At Bauma, this year, we introduced a seamless workflow in Operations Center that allows a paving company to send digitized work plans to their road building equipment.
When coupled with our guidance solutions and the underlying automation capability of the machines, this work plan automates steering and paving functions, freeing up operators to focus on other important tasks, and it paves the road with greater accuracy than most human operators can achieve. In addition, the work output from the paving job step can be used to improve the efficiency of the rolling or the compacting job step that comes next. It's difficult to overstate the growing importance of a digital connection to the work being done, regardless of the industry. Finally, on top of the data that is served through Operations Center, there's a unique opportunity to surface insights from the data to assist customers and those in their ecosystem in making more informed and data-driven decisions.
We do this in a myriad of ways already, from logistics models like time to complete a job to field readiness to harvest or planting to automated prescriptions for agronomists for any seed products of interest. But with the advent of large language models, our ability to produce useful insights related to both in-season and next season is expanding. We think about this as the language of farming. It's a way to use the latest technology to make it easier for farm and job site managers to leverage data for decision-making. By allowing managers to ask questions of data in human language, we see the opportunity to make data more usable and more insightful for our customers. All of this is enabled by a decision Deere made over a decade ago to connect machines that are doing real-world work.
By doing this, customers started building data sets that are exclusive to their machines and to their operations. This has created a unique position for Deere customers to have years' worth of data that will create insights that they can use to drive their businesses into the future. When John started us down the path of Smart Industrial, we didn't have a crystal ball to forecast exactly how technology would change and create opportunity. What we did know is that technology was changing rapidly, and with that change would come opportunity. We've already begun to capitalize on that opportunity and are continuing to invest in the expansion of our technology stack and to explore how today's emerging technologies will be tomorrow's customer solutions. And with that, I'm going to turn it over to Cory. Five years ago, we made Lifecycle Solutions a central part of Smart Industrial.
This marked a major change in how we support our customers, allowing us to reach more people through enhanced support, better solution utilization, and precision upgrades. Our focus is to preserve and increase the economic value of our customers' equipment and technology throughout every stage of its lifecycle. We provide access and support for customers no matter what phase their equipment is in, across all geographies, all equipment. Given today's economic challenges, the value we unlock for customers can mean the difference between profitability and loss, or between growth and contraction. We won't be successful with technology solutions without the highest possible quality on equipment. This requires the best customer and product support and connected equipment across the industry. We deliver far more than just connectivity and uptime. Our approach centers on driving productivity, maximizing technology utilization, ultimately ensuring customer success, ultimately returning greater value to the business.
Beyond simply connecting equipment, we proactively identify potential failures and forward stock parts, anticipating and preventing downtime before it occurs. This proactive strategy fuels a powerful analytics engine, a flywheel effect, where more data leads to smarter technology, which in turn can generate even greater customer value. Artificial intelligence is foundational to thousands of technicians who maintain and repair the most advanced equipment in the industry. Many of these AI-powered solutions, such as Operations Center Pro Service, were developed with customers at the center, and it adds to the suite of existing digital tools available to John Deere equipment owners today, including the John Deere Operations Center, Equipment Mobile, and Shop.deere.com, providing customers with even more control over how they use, maintain, diagnose, repair, and protect their machines. Since we first announced our LEAP Ambitions, we laid the groundwork for delivering future technologies to our customers worldwide.
First, through flexible technology engagement, the ability to engage next-level technology when they want it, where they want it, through licensing the technology they need for their operations, making it more affordable, accessible, and adaptable to their needs. Our role is not just providing tech to those at the top end of the tech stack. It's about taking anyone from wherever they are in their technology adoption journey and moving them up the curve efficiently so that they can be more effective. Precision upgrades enable the ability to upgrade their equipment with the latest technology. Access to the latest technology isn't limited to new equipment. Even those who haven't bought new equipment in years can benefit from upgrades, and this is not just in the U.S. We're also building the leading retrofit capability in our South American markets.
We're using brands like SurePoint, Dawn, Smart Apply to expand the reach of our technology solutions. In our solutions as a service business, the team advanced foundational capabilities to support a long-term subscription business in 2025, including launching global license management infrastructure and expanding utilization programs for key solutions. These advancements position the organization for streamlined commerce, improved customer engagement, and sustainable recurring revenue growth. Products like our premium precision offering and harvest automation fueled strong growth in our overall technology as a service offerings. And our growing impact is evident with over five million acres that were covered by See & Spray in 2025. Three quarters of the See & Spray machines in the field this year were retrofit units. Listen to Nebraska customer Jake Bachman talk about the impact of precision upgrades and See & Spray on his operation.
My name is Jake Bachman. I'm a fourth-generation farmer in South Central Nebraska. We grow popcorn, regular yellow corn, soybeans, and wheat. I'm a big fan of learning technology and kind of adapting new technology. I feel like an operation our size, you just can't buy brand new everything. You just can't pencil it out. And so when Deere went with a model of, "Okay, let's bring this new technology to the market by putting it on pieces of equipment that's already out in guys' shops," that is something that I was like, "Yeah, I'm on board with this." I feel like John Deere did listen to a lot of us producers and said, "Hey, we understand this is a downturn in market, and you might not be able to afford the brand new See & Spray Ultimate Sprayer. But hey, let's put this technology on your sprayer.
Let's put it in your shops, that's affordable," and we think that once you start using it, you'll fall in love with it, and you'll see the return of investment on, let's say, See & Spray.
Thanks, Jake, for your business. Our goal: advance the capabilities of our customers and their equipment, maximizing their productivity, profitability, and sustainability. Our ambition: put John Deere technology to work across as many acres and job sites worldwide as possible, ensuring every solution, whether iron or tech, receives the best support and uptime experience in the industry. Through new equipment, technology and lifecycle solutions offers we expect will increase our sales through new solutions and new technologies. We'll launch new product platforms and extend existing product lines.
We'll stack advanced sensing and action capabilities on all of our machines, delivering benefits such as lower input costs, improved placement, higher accuracy, and increased safety for operators and bystanders, demonstrated by innovations like Smart Detect. Lifecycle remains central to everything we do, with over 10 million pieces of active equipment in our installed base. Our greatest growth potential lies in unlocking the potential of customers who own equipment that is later in its operational lifecycle. I want to talk about the Deere tiered portfolio. By mid-2026, we plan to launch a new line of parts called John Deere Essentials, aimed at customers with equipment in the middle of its lifecycle, those who often turn to other suppliers and may rarely visit our dealers. This group represents a significant global opportunity. To support this strategy, we've exited underperforming businesses and markets that didn't align with our goals.
We're expanding thousands of part numbers over the next two years. We're introducing tiered offerings to better serve owners of mid and late lifecycle equipment. We'll use Deere's distribution network to keep the costs low, and we're investing in brand building to connect with these customers more effectively. This is the first time we're taking a fully integrated strategic approach to this space. Regarding lifecycle services, we're great at solving problems quickly, but our next goal is preventing them before they happen. It's about avoiding downtime, not just reacting to it. This is a newer initiative for Deere and our dealers. It goes beyond our global extended warranty. We're using our advanced technology stack to help customers manage their total cost of operation, combining the strengths of our machines with smart solutions. We're extremely well prepared to support our equipment throughout its lifecycle.
Our machines generate over 30,000 data points every minute, and we're using that data to help customers avoid their biggest enemy, unpredictable downtime. We're expanding our capabilities to manage cost and performance over the full lifecycle, sometimes up to 20,000 hours on machines like the 944K wheel loader. This brings peace of mind to our customers. This just isn't about warranty or parts. It's about significantly lowering operational and economic risk for our customers and letting Deere do what it does best to keep equipment running. And for the do-it-yourself farmer, we'll continue to offer the most customer-friendly diagnostics available, combining top-tier tech with powerful tools to keep them in control. Technology adoption and utilization is happening faster than ever, but it will take time. We're modernizing agricultural practices that have been established by multi-generational farm families for decades.
Additionally, in the current economic environment and downcycle, our customers are implementing familiar strategies to maximize their income, and they're not prioritizing process changes. Still, we're confident in our direction. First, because the technology is working. We're seeing strong utilization and renewal rates. Technologies like Harvest Settings Automation and See & Spray are great examples. In 2025, its first year of availability, Harvest Settings Automation had a take rate of over 90% on North American combines and covered over five million acres. It was used on average by operators over 60% of the time they were in the machine. Similarly, See & Spray technology covered over five million acres in 2025, covering over one million acres after covering over one million acres in 2024, and it delivered average herbicide savings of nearly 50% in the 2025 season compared to broadcast applications.
We have the right models and infrastructure to support adoption, to deliver customer value, and generate returns. We're using different rollout strategies and pricing models to meet customers where they are and adapting our approaches as we learn from the market. For example, with See & Spray, we introduced the application savings guarantee in 2025, where customers only pay Deere when the technology is saving them money, and for 2026, we've introduced an unlimited annual license for high-use operations. When we talk about growth, we talk about technology, but there's a third way we create value: reducing business volatility, smoothing out those highs and lows, and that's a great story for the solutions as a service business. It's a great story for the parts business and for lifecycle as well. For all of them, it's the role that we play in shrinking the peak to trough volatility of the business.
The SaaS model with lower upfront costs only pays for what you use, technology that gets better over time, maximizing activation, utilization, and renewals for customers. When we combine these innovations with our durable equipment and the John Deere Operations Center, the value proposition is difficult to match. This connected network surrounds customers like Jake, giving them technology that covers more acres, easy-to-adopt solutions, value that grows year after year. No matter the age or stage of their equipment, our customers know John Deere is behind them, supporting them every step of the way. That's the Smart Industrial in action. I'd like to now ask Raj to talk about John Deere Financial.
Hey, thank you, Cory. You just heard about how Smart Industrial is transforming productivity for our customers.
John Deere Financial is foundational to every aspect of Smart Industrial, to providing world-class equipment, advanced technologies, and digital solutions because of the trust we've built and the personalized financial solutions we deliver. In the U.S. and Canada, we finance about two-thirds of large equipment purchases and nearly half of smaller items. John Deere Financial is more than a lender. We are a strategic enabler. Across over 50 countries, we own a $65 billion portfolio, with 78% concentrated now in the U.S. We have 32 million interactions annually with customers, about a million customers who we serve through 1,500 dealers, powered by 2,400 employees who, unlike those at traditional lenders, combine equipment expertise, decades of understanding customers' operations and a global deal network, an advantage other financial institutions just can't replicate. John Deere Financial goes beyond financing.
We keep customers and dealers moving through every market condition, providing liquidity in downturns when others stop supporting the sector, accelerating growth and tech adoption when markets rise. So we are supporting generations of customers, in some cases, for more than 100 years. Here's what that looks like in practice. Our approval rates consistently exceed 90% in the last few years, about 15% higher than the average of our lender peer group. That means better access to capital for customers, especially when they need it, while maintaining lower losses than industry peers. We maintain strong portfolio quality while delivering financing in 95% of Deere markets, including high-risk regions where access to capital helps to drive growth. Because we stand by customers in tough times, we earn high customer satisfaction scores and low churn rates. Let's now hear how our customers feel about John Deere Financial.
I just want you to send a note to head office to tell them that we, as a family, really appreciate that at John Deere we can talk to real people. From the bottom of my heart, thank you all for being such a big giant company, but caring about a little small business guy like me.
So we get to hear this kind of comments from our customers over and over again. That's the real impact of JDF, keeping people working and building relationships that last. We also provide stability, generating stable income and cash flow through the cycle so we can keep investing in innovation. And we run highly efficient operations, translating into better margins and dependable returns. And our role isn't just about today. It's about enabling Deere's future growth. We are committed to support that in a few ways.
First, SaaS enablement, financing precision ag and connected solutions, including nearly half of all See & Spray licenses in the U.S. to date. Second, payments infrastructure, centralizing and modernizing Deere's payment systems for e-commerce point of sale and licenses. We are reimagining our processes to drive even greater efficiency and elevate customer and dealer experiences. As an example of the value of JDF's customer insights, in the 2026 combine and planter early order program, we utilize our understanding of customers' fleets and technology utilization to identify high-potential customers for new equipment and, more importantly, secondary buyers for trade-ins. That's how JDF turns data into growth for customers, dealers, and Deere. John Deere Financial is an important growth engine for Deere, providing customers with liquidity in tough times and helping accelerate tech adoption for long-term value at all times.
Our real differentiator, pairing strong customer relationships with data to create a seamless experience and drive insights into action, creating measurable growth for our customers, dealers, and Deere. And now let me bring Josh back to the stage. Thank you.
Thanks to Raj and to the entire team for taking time to be with us today. Before we wrap up, I want to just touch on a few more things, and I promise I'll be brief. You heard Justin and Deanna talk about the tremendous opportunity in production precision ag and small ag and turf spanning all geographies. Ryan laid out how we plan to elevate construction and forestry and take them to the next level, driven by product leadership and increasing productivity and technology. As a key enabler, Jahmy's organization will be at their side to accelerate and unlock this value through advanced hardware, software, and data insights.
Cory explained the role of Lifecycle Solutions and SaaS will play in this journey and how building an even larger foundation of precision machinery will enable this business to operate at scale, and finally, Raj's organization will continue to support this growth through tailored financing solutions. Ultimately, the work we've done thus far and the structural improvements that we've made enable us to fund all these initiatives and pursue them with confidence. Earlier, I spoke about the margin improvements that we've made decade over decade. Let's take a quick moment to talk about the value we've delivered for investors cycle over cycle. Peak to peak, 2013 to 2023, our net income tripled and diluted EPS was nearly four times higher. Similarly, if we compare trough to trough, 2016 versus 2025, diluted EPS was nearly four times higher, and even if you compare 2025 to 2013 peak, EPS doubled.
As John said earlier today, Smart Industrial was not just about tweaking our business model. It was a foundational shift that has and is providing fuel for growth. Now, to build on the growth opportunities the team shared today, let's contextualize what this all means for Deere going forward. If we start at the recently reported 2025 net sales for the equipment operations of $38.9 billion, an applied 10% net sales CAGR would result in around $63 billion by 2030, roughly $24 billion worth of growth. Based on our historic track record and plans in place, we expect half to a bit shy of two-thirds of this increase to be traditional growth coming from a combination of cycle improvement and some inflationary price. We expect the remainder, which can be considered above historical trend growth, to come from key drivers we talked about in our LEAP today.
These drivers are ultimately grounded in the customer value unlock, with around $2-$3 billion expected to come from incremental tech utilization via SaaS and additional lifecycle sales. The remainder of the incremental growth is expected to come through product leadership, manifested in both higher market share and shared value creation complemented by inorganic growth through M&A. The team today provided you clear examples of each of these drivers. The expected incremental SaaS and lifecycle growth will continue to build Deere's base of revenue that is less tied to the equipment replacement cycle. Adding revenue from John Deere Financial, which is more stable as well, by the end of the decade, we'd expect this base to represent nearly one-third of total revenue at mid-cycle.
Let me connect this growth aspiration to the shareholder value added conversation we had earlier when we reflected on the significant improvements we've made over the past 25 years, and especially since Smart Industrial. SVA is a measure we've used internally for 25 years and is a great proxy for profitable growth and asset efficiency. These advancements have not only resulted in impressive financial gains, such as tripling net income or nearly quadrupling diluted EPS from peak to peak, but have fundamentally shaped and reshaped our ability to deliver significant value to shareholders, and our goal is to continue to accelerate that.
Based on the financial outcomes we presented today, 10% net sales growth, 20% operating return on sales, and 45% operating return on assets, that would equate to more than $9 billion in shareholder value added at mid-cycle in a single year, which sets the company up for another step function change over the next decade. If we look at what that could mean from an EPS perspective, we'd estimate $40-$45 at mid-cycle, roughly $20-$25 at the bottom, and $55-$60 at the top. We've talked about growth extensively today and how it has the potential to translate into future value. This, in turn, can and will result in higher cash flow. I'd like to briefly highlight how we intend to prioritize the use of cash going forward.
We remain committed to our single-A rating and continue to invest in our business while also returning cash to shareholders. Over the past 25 years, we've returned more than 80% of our remaining free cash flow from the equipment operations to shareholders via dividends and share repurchases. This translates into nearly $60 billion, with roughly half of that amount accounted for post the launch of Smart Industrial in 2020. Looking ahead, we expect this trend to continue, and consequently, we expect to deploy substantially all remaining free cash flow to shareholders over a business cycle, and so, as we reflect on everything we've talked about today, I want to come back to John's opening comments and highlight some of the most important points. Our confidence in Deere's future has never been stronger.
We've transformed our business over the last five years and have established the foundation for a new business model that will enable faster adoption of technology for our customers. We're all going up. Smart Industrial could not be more relevant, enabling the business to be more resilient, and we've seen this through the recent environment of uncertainty. And lastly, we are committed to delivering even greater value with increased emphasis on profitable growth that will drive lasting impact for years to come. To close, I'd like to thank all of you for your participation today, whether you're here in the room at the New York Stock Exchange or joined us virtually. Your engagement and trust means a lot to us. W e're leaping ahead now and for the future. Thank you. We'll now proceed to the Q&A session. If you have questions, there's QR codes on your sheets there.
I'd like to ask Josh Beal and the entire team to join me. The QR codes that are at your table, we'll use those. We've got a good repository of questions already, but keep them coming. Those that we don't answer in the time we have allotted, we're going to take about 15 minutes or so for Q&A. For those that are here, we'll have some more time to interact post the session as well. But please shoot them towards us, and we'll make sure that if we don't, like I said, if we don't get to them, we'll answer them in follow-ups. I think we're pretty well assembled, so we'll get started. For the team, we've got a good set of questions, 15 minutes, so we'll be thorough, but shoot to be concise as well.
Maybe to start, we talked about our confidence in our future, $150 billion of incremental addressable market. Cory, maybe I'll direct this one to you to start off with your answer to this. The question is, on the $150 billion of incremental TAM, how much is accessible with technology that's available in the market today? How does that compare with where we were three years ago as we built that out? And where does that go to 2030 as we strive towards our operating targets?
Yeah, a couple of things to think about with the $150 billion is we continuously unlock, but we're also filling into the top of the hopper more and more each day. So the teams continue to find more. The original 150 we talked about, there's about 20% of that that's been unlocked to date.
That original 150 has about 80% left, but we continue to add to it. Maybe the biggest thing to think about is that's from the reference or the model farm as well. We have significant opportunity in addition to that to take everyone from where they are further up their adoption scale to that model. So it's both the 150, which about 20% has been unlocked, more going in every day, and also moving people to the model reference farm, if that helps.
Yeah, that's perfect. Thanks, Cory. There are several questions that are a variation on a theme of the 10% growth, so I'm going to attempt to bundle these and address them to several of you. The question on the 10%, first and foremost, is when we get there by 2030, what does that apply? Is that an estimation that that's at mid-cycle?
And what sort of margin would that apply at that level? How much of that 10% growth is going to come from price versus volume, as well as the question on M&A? And so maybe, Jepsen, if you take that. And then additionally, Deanna, Justin, and Ryan, wondering within your individual segments, what is your growth like? Is it in line with that? Are there certain areas that are above those growth rates? And then lastly, Cory, for you, how much of that is retrofit? So we'll try to work through all of that, but I'll keep you all honest as we go through this. But there's a number of questions on there, so I thought we'd just package them up.
Yeah, I'll start with points like A to G. Thanks, Josh. I think first and foremost, what does this imply?
We're not trying to predict exactly where we are cycle, but we're assuming, hey, we think that 2030 number, we think that's pretty close to mid-cycle. Our normal calculation math may shift or lag, but generally speaking, we're treating that as if it's mid-cycle or very close, which would imply the 20% margin on that, as we discussed. I think the other part of that question too is then on price. What is the assumption? Historically, we've talked about 2%-3% as kind of our historical average on price. What we've modeled, what we'd expect, is probably the low end of that range, so relatively modest in terms of what we think comes from price there. The other piece was M&A. We haven't necessarily layered in specifics on M&A.
We'll do that as we continue to execute and identify those opportunities, but we expect growth as a result of that, but we don't have a number to specifically lay out. Deanna, if you want to take large ag.
Yeah, thanks. We mentioned it in the presentation for Production and Precision Ag. We have three focus areas for growth. One is ensuring that our full Production System solutions are expanded to more geographies. So think about this as core market share gain in addition to the lifecycle opportunity, core price gains in the U.S., but more importantly, outside of the U.S. as well. In Production and Precision Ag, lifecycle will also play a key role. We mentioned it's part about bringing technology to more Production Systems. In Production and Precision Ag, we focus a lot of our technology launches on Production and Precision Ag.
So this is all about scaling adoption and utilization of our foundational technologies, automation, autonomy beyond just the core U.S. markets, but also globally and across all production systems for production and precision ag. And then finally, it's about delivering more value for customers in the places in which we've been operating and managing for decades and ensuring that they're getting more value. So in turn, we're delivering more revenue and more margin per unit of sales of our equipment as well.
Maybe one point of reference also, if you think about ag, so put together production precision ag and small ag and turf, one point of share globally is around $2 billion from a revenue perspective. So just as a marker, when you think about the opportunity, and we think there's more than just that one point of opportunity across the globe as we step forward.
If I think about the small ag and turf business and our European, Asian, and African operations, one of the most significant product segments in Europe is the versatility tractor, sort of the 250, 200, to 300 horsepower range tractor. That is growing very quickly. We have a lot of new product that's coming out, starting to go into market this year and into next year and through the balance of the decade. And I think that will give us a real tailwind to structural growth from a market share perspective. Markets like India, so the story with India is over the last years, we've been building a stable, profitable business. But you heard me say earlier in the remarks that the total industry there is 900,000 tractors. We're at just a little under 9% market share there today.
And so we believe now that we've stabilized the profitability of that business and we've got the right product, the right manufacturing footprint there, we can actually continue to grow and sell significant units both in that market domestically and as an export market. And then the third one I would highlight would be our turf business. There's a lot of what we talked about today, Operations Center and so on, is so valuable for B2B customers. And historically, we haven't, I believe, put as much focus on that B2B segment as we could. And so we think there's a lot of runway to be unlocked there with B2B by bringing and extending our tools from Operations Center and other parts of the tech stack. Yeah, for C&F, I said in my presentation, Excavators 2026 starts the journey of having our own product, our own differentiated product.
It's 40% of the industry. So as we go through that transition over time, we certainly think there and expect to be in a better market share position. The other part, technology is starting to inflect in C&F for all the reasons that I talked about in my presentation. So we think there's a compounding aspect of our machines are going to go out, higher features, and then additional things that we can do on the digital side. Wirtgen, they're just starting to build this incredible technology foundation. They're also going to be delivering new product portfolio for some of their lower performing. They're still very high performing market share, but they're lower performing market share businesses. They've got new product coming out that we expect is going to be able to take share and grow that business. And then finally, compact construction.
Compact construction continues to be just a really fast growing part of our business. We delivered a new product in a large frame, compact track loader. When we deliver new product, we tend to grow share and grow that business significantly. We're going to accelerate the pace on the large, but also on the mid and the small to deliver updated product and new features. And then I think I need to emphasize, nobody has a channel like ours. We sell these products in North America through both the construction channel and the ag channel. So the opportunity for us with new product and to take share delivering product through our channel, we think is significant. And Cory, as you answer for retrofit, we've got another one that came in around lifecycle to aftermarket.
In addition, how much is that going to contribute to the growth, particularly given that we've been at around 15%-20%, a range of sales for a number of years? So if you could group retrofit and parts as part of that. Yeah, I think Josh mentioned in his closing $2-$3 billion coming off of the lifecycle side in addition to what we'd see in the SaaS-based businesses over this period of time. But I would give you a couple of things to think about. There's tremendous growth opportunity here. First, it starts with our core technologies like the premium precision offering. Some of the most active growth in the tens of thousands of units a year are coming from things like taking our latest technology displays, position receivers, telematics back against that, millions of machines in the fleet.
That's in the order of tens of thousands today. It's going to continue to accelerate. But then the additional high-end solutions, the Sense and Act kind of solutions, we're just at the starting point for. We just started a couple of years ago launching things like ExactEmerge retrofits, and we're putting kits out, but we still have less than half the acres of corn planted that way today. Tremendous opportunity for growth there. And the last one I'd mention is See & Spray, 5 million acres sprayed this year. But of all the acres we have, three quarters in the last year of growth came from the retrofit opportunity. So just think about the installed base represents a massive portion of our opportunity to accelerate growth of these technologies year over year. Thanks, all.
Shifting to the topic of digital engagement, I'm going to blend a couple of questions here as well. The question on engaged acres versus highly engaged acres, and if we think about customer profile within those two segments, the folks that are more highly engaged, do they upgrade equipment more frequently? Is it higher margin, more services, better yields, and then similarly on the unique digital users, give us a sense of what's that composition of the 400,000 or so today, and how do we expect that to grow to 1 million by 2030? Yeah, maybe I'll start with the engaged acres and highly engaged acres, and I think about this really in two ways. One is a bit backward-looking, and the other is forward-looking.
As we look at those operations, those ag operations who are engaged and then move into the highly engaged category, it's clear to us that they're more likely to stay in the John Deere ecosystem. They're more likely to buy John Deere equipment and use John Deere technology compared to those who aren't. So that's a great opportunity for us to ensure that we're keeping customers happy. And that's all because we're supporting them through the tools that Cory talked about with things like Operations Center Pro Service, e-commerce, and our dealers who are deeply connected with them to make sure that equipment's up and running. But they're also able to see the value that's created from using John Deere equipment and technology. The second really important part about engaged and highly engaged acres is the future opportunity that those present.
Because remember, being engaged in the Operations Center and structuring your farm digitally, creating that digital twin of your farm is what unlocks a farmer's opportunity to move themself up the tech stack and use much of the automation technology and autonomy technology that is the next five and 10 years of value unlock that John Deere will have for the ag equipment industry as we lower inputs, lower labor, and help them increase their yields.
Yeah, and for the average monthly digital users, unique users, unique's an important word there. They can walk through the digital door for us in a multitude of ways. Certainly, Operations Center is one of those ways. My financials is another. Equipment Mobile is another. Shop.deere.com, et cetera, and so on. So there's a multitude of ways that they can sort of connect with us digitally.
We want to measure the unique number of customers that come in that way. I think the growth that we'll see there is predicated upon the opportunity that we have in all the areas, all the production systems. But I'd call out a couple that are significant in terms of the numbers. And maybe Justin can comment on this a little bit further. But the turf opportunity is significant in terms of the number of units that we can connect and the number of customers that we can touch. And you talked about it a little bit, but the India domestic tractor business is another one that just represents a significant opportunity for us in terms of overall units and number of customers. Justin, anything to add to that? No, not much. I mean, you're right.
It's in the hundreds of thousands of units that we can add on both of those. And as I mentioned in my earlier comments, the professional landscaping in particular is professionalizing, often getting rolled up by large private equity firms and such. And they are looking for ways to build a technology platform that allows them to run and scale that business. So the more that we can connect those equipment, connect their workers, connect all of the different assets, it allows them to supercharge their growth. And obviously, both they and we benefit from that. We got a little less than five minutes left. We'll try to get a couple more here. Ryan, this one's coming to you. Super excited about ConExpo, what we're going to do with excavators there. Maybe can you talk qualitative opportunity that excavators give to Deere?
Does it expand our TAM, share opportunities both in the Americas and globally, and also from a tech side? Yeah, I think certainly, as I said, from a share perspective, we expect to be able to, as we over time continue to deliver new products into the marketplace, claim some additional share upside with our products. I think important is when you're working with a partner, the ability to translate customer needs into something in the field through a product that's inherently slow. We've eliminated that bottleneck. Plus, we have the tech stack that Jahmy and others have built with our displays, our control systems, the common look and feel across different pieces of Deere equipment across job sites. We think all of those will be able to give us additional incremental market share and give our dealers a product that they can differentiate on.
From a technology perspective, grade control, safety, cameras, payload, all of those things we can deliver relatively seamlessly through what we've built already. So I would say significant opportunity with respect to market share, plus each unit is likely going to continue to go out with more technology on top. And so that means margin, it means revenue, and it means productivity for our customers. Thanks, Ryan. I think we can squeeze two more in because of Jepsen. I think you can be fast on this one. The 40-45 EPS by 2030, how much share buyback is assumed between now and then to get to that level? Yeah, intentionally range there. We're not trying to get too finite in what exactly that looks like.
But I think if you look at historically what we've done over, call it the last five to 10 years, kind of on a run rate of number of shares, we use that for a bookend. Obviously, there's some fluctuation there, but generally it assumes buyback and kind of add a, I call it more of a historical average that we've done. And John, I'll close this one with you. And I think it's a good way to end, just given the framing of the day. There's a lot of questions we didn't get to, so we'll try to do those in the follow-ups. And like I said, we'll try to follow up as well.
The question, John, for you, looking over the past one to three years, thinking about our tech capabilities, the pace of change that we've seen in the market, what would you say have been the biggest opportunities that have opened up for Deere over these past several years? Yeah, first of all, thank you all for coming and being a part of this. Several of you in the room have been on this journey with us back to 2019, 2020, and to get to that question, I just want to summarize by saying at that time in 2020, we majorly restructured our company because we were on the path of continuing to build just the best product, and that was not going to be enough to be successful and lead our industry worldwide going forward. We had to help our customers do the jobs they do better.
Instead of the best planter, help our customers plant better. And you can go through all the production systems and have that same sort of story. We knew to do that, we had to get deeper into understanding our customers' businesses to understand where do we deploy the greatest amount of capital to create the greatest return for our customer. Again, making them more profitable, more productive, helping them do the jobs they do in a more sustainable way. We've centralized our tech stack. We've created some really industry-leading technologies like automation through advanced sensor capabilities and autonomy. And as well, we've built out a world-class industry-leading customer support and aftermarket business that can serve our customers regardless of where they are in their cycle with their equipment.
The reason I take you back there is we're at the point now where we have regions, we have customers, we have dealers that are now pulling us, pulling us for growth, growth into new regions, growth into new markets, growth into new production systems. So this next chapter we're all about to go on together is to leverage that strong foundation of the Smart Industrial, deep knowledge of production systems, advanced tech that nobody else in the industry has, and strong customer support. Now it's time to grow this business and grow it across all of our production systems, all of our regions, and do it in an accelerated way. So thank you for your time. I look forward to sitting with you all in our small breakout groups and having further discussion. Great. Thanks all for joining us today. Thank you very much. We appreciate your support.
We appreciate your interest. For those joining us online, thank you for your time. And for those in the room, we're going to transition back through the doors to Freedom Hall. Thanks again. Have a great day.