In 1955, Grumman preliminary design engineers Joe Lippert and Arthur Koch proposed the design for a "purpose-built" crop-dusting airplane as a means of fulfilling a pressing need in the agricultural community, as well as the perceived need for Grumman to diversify its product lines.

[2][3] This initial flight test consisted of three short familiarization hops with the take-off weight set at 3122 lb and the center of gravity at 31.2%.

In total, 46 test flights were completed by the end of August 1958 with a general finding that this was a well-behaved aircraft with only minor refinements needed before production.

Grumman's board of directors chose to subcontract the entire program to the Schweizer Aircraft Corporation of Elmira, New York.

The first Schweizer-built Ag Cat, bearing registration number N10200, flew on October 17, 1958, under the control of Schweizer test pilot Clyde Cook.

The study also showed that most of the concerns expressed by agricultural aircraft operators were addressed by the Ag Cat C model.

[5] Allied Ag Cat is not producing new aircraft, although a related company operates a large fleet of Ag-Cats.

The basic airframe incorporates many safety innovations, including a pressurized cockpit to keep pesticides out, air conditioning, and a fuselage structure that is designed to progressively collapse in the event of a collision.