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Jul 14, 2014
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Machinery Pete

RSS By: Greg Peterson, AgWeb.com

Learn how to better manage your machinery investments from Greg Peterson, a.k.a. "Machinery Pete." He's been researching and analyzing machinery auction prices for more than 20 years.

JD 4440 Tractor Values Up 11.5% in 2014

Jul 11, 2014

 JD4440 SK  35K

Older, but worth more money.

That's the scoop on John Deere 4440 tractor values through the first half of 2014. The iconic tractor model made by Deere from 1978-1982 is up an impressive 11.5% in value so far this year over 2013 values, despite now being 32-36 years old. Compared to 10 years in 2004, 4440 values are up 15.2% in value. Check out the data yourself below in a table showing the Ave. Auction Sale Price on John Deere 4440's over the past 18 years:

Calendar Year Ave. Auction Price High Price Low Price
2014 $22,502 $35,000 $12,000
2013 $20,190 $47,500 $6,900
2012 $17,930 $42,000 $8,500
2011 $20,480 $37,000 $9,000
2010 $19,847 $34,000 $9,500
2009 $21,475 $58,000 $6,500
2008 $20,906 $36,000 $11,100
2007 $19,576 $32,000 $9,000
2006 $20,609 $37,000 $10,000
2005 $19,181 $40,400 $6,000
2004 $19,536 $41,400 $10,600
2003 $17,456 $25,300 $500
2002 $18,209 $29,000 $8,750
2001 $18,842 $30,000 $11,600
2000 $19,500 $28,250 $11,000
1999 $19,716 $34,250 $11,300
1998 $20,601 $37,000 $13,600
1997 $21,894 $36,500 $14,500
1996 $22,567 $37,000 $14,300

* Data by www.machinerypete.com

So why are auction sale prices rising on a 30+ year old used tractor model even as commodity price levels have softened here in 2014 vs. prior years? Well. couple factors at work here I think:

1. No. of farm machinery auctions at historic low levels. Compared to 10 years ago in 2004, our data shows a staggering 53.2% drop in the No. of machinery auctions...so we're coming off an extended strong period for farm profits, folks have money and now 53.2% fewer machinery auctions taking place. More money chasing fewer nice 4440's = rising values.

2. Buyers placing increasing value on acquiring older/simpler models. "Pete, I like that I don't have to hook it up to a laptop to fix it." If I had a nickel for every time I've heard that sentiment echoed over the past few years....let's just say I'd have myself a big bag full of nickels. Late model modern tractors, combines, sparyers and planters do amazing things with computers, GPS and all manor of technology. All great....but there is definitely something to be said for the simpler, the familar, what we're used to, what we have a history with. So when the really nice John Deere 4440's show up for sale at auction now, anywhere....tons of buyer interest, which can result in things like this 1981 JD 4440 (pictured below) with 4,552 hours selling for $47,500 on a January 19,2013 farm auction in northeast Iowa:

JD4440 IA  47500

3. The start of buying nice 4440's as collector items? I know, sounds totally weird, but I think its' true. I've been writing, talking and blogging a lot the past couple years about what I call "The New Collector Tractor"...rising auction sale prices on nice original or restored tractor models from the mid 1960's - mid 1970's. Well, it feels to me like this trend now may be stretching out to encompass classic well loved tractor models from the late 1970's into the early 1980's...so bingo on John Deere 4440's.

Here is a Youtube video I just posted this morning with a closer look at rising values on John Deere 4440 tractors this year, highlighting (5) very nice ones sold around the country + video I shot of a nice 1981 model 4440 with 4,160 hours selling on a June 19, 2014 farm auction in north-central Iowa:

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Recap of Recent Notable Tractor Sale Prices

Jul 07, 2014

 Recently, I covered a farm retirement auction in north-central Iowa where a nice 2008 John Deere 8430 MFWD tractor with 1476 hours sold for $170,000. How does that compare to what other 8430s have been selling for? See for yourself with data straight from the MachineryPete.com database:

$149,000: 2009 model, 2,296 hours, April 3, 2014, northeast Indian
$154,000: 2009 model, 2,000 hours, March 15, 2014, west-central Michigan
$148,000: 2006 model, 3,639 hours, February 7, 2013, northeast Indiana
$155,000: 2006 model, 2,870 hours, January 11, 2013, northwest Indiana
$140,000: 2007 model, 1,444 hours, December 3, 2013, northeast Missouri
$158,100: 2008 model, 2,927 hours, February 18, 2013, west-central Minnesota
$106,000: 2009 model, 5,500 hours, April 10, 2013, northeast Texas
$189,000: 2009 model, 675 hours, March 5, 2013, north-central Iowa
$199,500: 2009 model, 1,150 hours, November 18, 2013, south-central Kansas
$130,500: sold Jan. 1, 2013, northeast Mississippi
$135,500: 1,809 hours, February 7, 2013, northeast Indiana
$174,500: 1,302 hours, January 17, 2013, east-central Nebraska

 

Here's YouTube video I shot of the John Deere 8430 selling on the June 26, 2014 farm retirement auction in north-central Iowa: 

And just for fun, here’s a record sale on an Allis Chalmers D21 tractor! Here's the YouTube video I shot on June 28th at the collector auction in Bedford, Iowa:

 

Insights on Combine Values, Section 179 and Illinois Auction Highlights

Jul 01, 2014

 There was a nice farm auction on Thursday, June 19, in east-central Illinois. Here’s a couple sale price highlights:

·  2009 John Deere 9670 STS combine, 1236 engine hrs: $164,000

·  2009 John Deere 7830 tractor, 2010 hours: $105,000

·  1992 John Deere 4455 2WD tractor, 7631 hours: $31,500

That’s a pretty strong price of $164,000 on the 2009 John Deere 9670 STS combine. For comparison sake, on a June 4 consignment auction in southeast South Dakota a very similar machine, a 2009 model 9670 STS with 1278 engine hours in good condition sold for $150,000. Looking at the auction sale price data in our "auction results" database on www.machinerypete.com, it shows that overall values have solidified on John Deere 9670s this year. Here's the scoop:

·  Average auction price this year: $150,444

·  Average auction price in 2013: $146,730

·  Average auction price two years ago: $153,292

·  Average auction price three years ago: $178,682

Note the large average sale price drop from 2011 to 2012 ($178,682 down to $153,292). Not surprisingly we saw a surge in the number of 9670s sold in 2012, so there’s supply and demand at work in a big way.

So far in 2014, nearly half way through the year, I've seen just slightly fewer 9670s sold at auction v. 2013. Of course, there are still a ton of nice later model used combines sitting on dealer lots all over the U.S., which is a continuing issue to work down this inventory level. It could be that we'll see a surge of late model used combines hit the auction market here soon.

One angle I'm keeping tabs on is on the tax front, our old friend IRS Sec. 179. In June, the House of Representatives passed a tax/business bill that included a provision to bump back up the Sec. 179 immediate write off limit for any business asset purchase (new or used farm equipment included) to $500,000 for 2014. And that bill works to make this permanent. Wow, that would be something, wouldn't it? Of course the bill still must pass the Senate and be signed by the President, but I think definitely a general "feeling/hope/belief" out there in farm country that something will get done on this front by the end of the year.

For large dealer groups with multiple stores sitting on a high level of late model used combines (and 200 HP+ tractors and four-wheel-drive tractors) that potential development with Sec. 179 write off limits made higher and permanent would be very welcome news. So it’s possible that some dealer groups maybe deciding to hold off on their inventory reduction auctions this summer and wait for more positive sale conditions later this year. But it’s always risky to wait. And it’s always risky to count on Washington to get things done. This all means that it should be an interesting rest of the 2014. Stay tuned.

 

Hot Prices on Kansas Farm Auction Saturday

Jun 19, 2014

ChevyC60 KS  28K 

The weather was HOT and the bidding was HOTTER on a farm retirement auction Saturday (June 14, 2014) in north-central Kansas (Smith Center, KS).

How hot? How about $28,000 for the 1986 Chevy C60 grain truck pictured above. It had only 10,000 miles on it, a 366 engine, 2x5 transmission and an 18' steel box. Yes, $28,000 is a new record high auction sale price I've seen on a Chevy C60. It was "1 owner" truck. Most of the equipment on this sale was 1st or 2nd owner equipment. Auctioneer Lee Oliver of Oliver Realty and Auction (www.oliverauction.com) told me last night that owner Vernie Nelssen was extremely particular about the care of all his equipment.

It showed in the sale prices.

Here are a few more highlights from Saturday's sale:

2001 CaseIH MX220 tractor with 750 hours: $98,500 (new record price by $20,500)

CaseIHMX220 KS  98500

 

1981 IHC 986 tractor with 3100 hours: $20,000 (4th highest price I've seen)

IHC986 KS  20K

 

1984 Gleaner L3 combine with 2,013 engine hours & 24' header: $28,000

GleanerL3 KS with24head KS  28K

 

1954 Farmall Super MTA tractor, restored: $7,100

IHCSuperMTA KS  7100

 

1971 Chevy C50 grain truck, 36K miles, 350 engine, always shedded: $9,100

ChevyC50 KS  9100

 

Lakeside #128 anvil: $500

anvil Lakeside 128castiron KS  500

One more example for you of the very strong bidding on this farm sale Saturday in Smith Center, KS...auctioneer Lee Oliver told me he sold an SK 3/4" socket set for $475. Wow, hot sale indeed!

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Looking for Dad's Rare Custom Built 4WD Tractor

Jun 16, 2014

OldBlue SteveBeckerTrumanMN FindDadsTractor 

Kenny Becker of Truman, MN built it 50 years ago. Where is it today?

That is the question and the quest Kenny's sons Steve and Ross Becker are on today. They are looking for "Old Blue"...the affectionate family name given the custom built 4WD articulating tractor Kenny Becker built back in 1964 out of (2) old Allis Chalmers tractors (B's?) and a Detroit 3-71 engine. See a picture of the tractor above, rolling in the 1965 "Truman Days" parade.

* Listen to Pete Talk about this Tractor (click below) Today on "AgriTalk" Radio Show

 

Back up those facts a sec folks and chew on this a bit...1964, a custom built 4WD articulating tractor. How many large articulating 4WD tractors were there 50 years ago? Any yet? So this tractor holds not only a special place in the Becker family farming history, but also in the development of large modern tractors to power American agriculture forward back in the day.

Steve Becker of Minnetonka, MN reached out to me for help in finding "Old Blue".

"It was used for only one or two years before Dad decided it wasn't big enough for what he wanted to do, so he started gathering parts to build Old Blue#2 over the winter of 1966/1967," said Becker. "Once #2 was field ready by spring of 1967, he sold Old Blue #1 to Truman Barduson, an army friend who farmed near Appleton, MN, so my brother who was born in 1965 has no memory of it and I was born in the mid 70's so never saw it other than the pictures and only heard stories about it from Dad."

"Old Blue #2 we still keep on the farm field ready even though it hasn't done any real field work since 2000/2001." Here's a pic of "Old Blue #2"
 
Oldblue2 SteveBecker MN

Steve Becker tells more on the history of "Old Blue #1"......"Truman remembers selling it or seeing it at an auction in the late 70's or 80's. It was at one point owned by Chris Laumb (Montevideo/Appleton) (dates unknown, maybe '90s?)  My Dad always regretted ever selling it so we tried to find it with Truman Barduson in the early 90's but couldn't find any leads. Chris Laumb passed away 10 years ago or so, Truman Barduson is still alive but I believe has been in poor health for the last few years.

Steve thinks Chris Laumb had an auction in the 1990's and probably sold "Old Blue #1" on that sale.
 
"My brother and I tried again around 1999/2000 to 'get it back home' for dad to work on in retirement, but still couldn't find anything.  Although dad passed away in 2002, and it's now going on 12 years, we've continued to have the dream of finding it and if luck has it right, still manage to get 'Old Blue' back home, or at the very least, learn more about the history of it since it left our farm in 1967 and connect our story of it's beginnings with whoever may have it now, or at least see it since it was sold before either of us were around know it.

"I actually have the original sketches/blue prints in my possession too, which may be of interest to other people to see who have been around the tractor through the 70's, 80', and to wherever it is now.

"Thank you again, we are so grateful to have some help in the search."
 
If anyone has any info on or memories of this custom built 1964 4WD articulating tractor "Old Blue #1" that was built by Kenny Becker of Truman, MN and eventually found its way up to the Appleton and/or Montevideo, MN area in the 1980's and 1990's, drop me an email at: greg@machinerypete.com
 
Let's help Steve and Ross Becker find the amazing tractor their dad Kenny built 50 years ago.
 
 
 
 
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