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.
Blistering Prices on Illinois Auction Yesterday
Nov 24, 2013
Ok, this is just plain amazing.
An Illinois farmer had his 1982 JD 6620 combine with 2,694 hours (see pictured above) listed for sale privately a while back, with a nice JD 918 grain head and a JD 444 4-row wide corn head. Asking price for the combine and 2 heads...$12,500. No takers. None. So he decides to have himself a small farm retirment auction instead. That auction was yesterday, Saturday, November 23, 2013 in Rushville, IL. How'd he do?
* 1982 JD 6620 combine with 2,694 hours: $28,500
* 1990 JD 918 grain platform: $7,000
* JD 444 4-row wide corn head: $2,600
...so all told, $38,100...just over TRIPLE what he'd been asking for the combine & heads just weeks before. Wow. Can I say double wow? Guess I just did. It's sale price results like this I've been seeing on nice farm auctions all over the U.S. and Canada that push me to make this statement, as inconceiveable as it sounds to the ear:
"Farm auctions are the new retail when it comes to used machinery prices."
When I say that, I am forced to harken back to when I started compiling auction sale price data on all types of used farm equipment...1989, the end of a brutal decade. Farm auction prices weren't RETAIL prices for used machinery back then. They are now, as these sale prices on the Illinois farm auction yesterday prove. Think any implement dealer, anywhere, could get $28,500 for a 1982 JD 6620 combine with just under 2,700 hours sitting out on his lot? Nope. But the centuries old tried and true auction method and great auction firms like Sullivan Auctioneers (www.sullivanauctioneers.com) who had yesterday's sale get these kind of amazing results.
Well, because the price of NEWER equipment is so darn high for one thing. Makes the really good condition, well cared for used farm equipment seem like a great bargain...even at increasing premium prices being paid currently. Other huge factors are availabillity....how tough is to find a super conditon 30+ year old combine like the 1982 JD 6620 on yesterday's Rushville, IL sale? Pretty doggone hard. So when the really, really nice ones show up....any sale price result is possible.
Of course TAX POLICY and the hunger for last minute tax deductions for equipment purchases is another HUGE factor....looking like late here in late '13 moreso than I've seen before and this trend/mindset has been only increasing and becoming more prevalent the past 6 years. How high is $28,500 for that 1982 JD 6620 combine?
* highest auction price I've seen in nearly 9 years
* 2nd highest auction price on JD 6620's I've seen in 13 years
* $8,000 over the next high auction auction price in past nearly 9 years
But the 1982 JD 6620 combine wasn't the only example of very historically strong auction sale price on yesterday's farm retirement sale in Rushville, IL. Here are a few other highlights showing that color isn't as important as this.....outstanding condition:
1978 AC 7060 tractor with 2,540 hours: $12,000 (2nd highest price in 14 years)
1974 AC 200 tractor with 2,599 hours: $6,750 (3rd highest price in 14 1/2 years)
Kewanee 1020 20' disk: $5,000 (5th highest price last 17 years)
One more note here on this Kewanee 1020 20' disk...while it is the 5th highest auction sale price I've seen in 17+ years, it is only the 4th highest auction sale price I've seen THIS YEAR on a Kewanee 1020. As I've been saying, writing and blogging about throughout 2013....values on good condition, older used tillage has been ON THE RISE. Here's recent proof:
* Area sold: WCIL = west-central Illinois, etc. Data by www.machinerypete.com