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Apr 16, 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.

Allis Chalmers Tractor Sold for Record Price Saturday

Apr 13, 2014

AC4W305 ON  71K pic2 

Kemptville, Ontario farm retirement auction yesterday (April 12, 2014)...1982 Allis Chalmers 4W-305 4WD tractor with only 1,675 original "1 owner" hours, 3pt. and PTO, sold for a new record high auction sale price of....$71,000.

Wow.

But what I found just as or more interesting than the new record auction sale price was the story of both the tractor's history and the story of the buyer. But before I touch on those angles, first let's hear from one of the men who sold the tractor on yesterday's sale, Stewart James with James and Hill Auction Service, LTD.

"In 43 years in the auction business we've never had as much interest in an item," said James. "We had phone bidders from Colorado, Pennsylvania and Michigan and we had three bidders on the ground. When it came time to sell it...it got so quiet."

"The bidding started at $25,000, then boom, boom, boom. The bidder from Colorado had a 12,000 acre farm and told us if he got the tractor it would straight into his museum collection and never be used again."

TRACTOR'S HISTORY: it was bought new back in 1982 from a local Ontario dealer, after the tractor had been transferred from a dealer in Buffalo, NY. Original new sale price of the 1982 Allis Chalmers 4W-305? $91,000.

The buyer of the tractor was Kevin Wilson, a young farmer from about an hour away in Vankleek, Ontario. Kevin farms 5,200 acres with his father Ian and brother Gary Wilson. Kevin's grandfather Bob Wilson ran an Allis Chalmers dealership from the late 1950's into the early 1970's. Grandpa Bob's dealership went by Bob Wilson Sales. Here's a pic of Bob Wilson (far left) back in the day receiving a sales award from Allis Chalmers territory managers.

AC4W305 BobWilsonpic 

Here's a pic of Kevin's father Ian Wilson as a young lad standing in back of an AC WD-45 on his father Bob Wilson's dealership yard:

AC4W305 IanWilsonpic

Despite the family's obviously strong historical ties to Allis Chalmers tractors, Kevin said nostalgia wasn't the only driver behind the $71,000 purchase of the 1982 4W-305 on the auction yesterday:

"I'd say 60% of the reason was for nostalgia," said Wilson. "But we farm 5,200 acres, we grow soybeans, corn and wheat. We have been looking for a 300 HP tractor for a long time. We had a local dealer come out and show us a new one for $450,000, but I'd like to pay off the tractor in my lifetime."

"We didn't want to spend half a million dollars for a tractor to pull a ripper."

Kevin also relayed another common theme I've been hearing more and more from buyers of very nice condition, low hour older tractors the past two years...."my brother Gary is very good working on our equipment and we won't have to hook this tractor up to a computer to fix it."

Bingo.

I asked Kevin how the day unfolded yesterday and his emotions bidding on a such a rare (Allis Chalmers only made 400 or so 4W-305's) low hour tractor.

"We didn't expect it go for what it went for. We thought maybe an Allis Chalmers dealer or two may be in on it. We didn't make our first bid until $61,000."

Someone in the auction crowd yesterday actually shot video of it selling...here's that video:

"We are very happy," said Wilson. "You get what you pay for. On the drive home yesterday we stopped for coffee and got to laughing about bidding against someone who wanted to put the tractor in a museum."

Wilson told now he and his brother and fathere are on the lookout for one more Allis Chalmers tractor, a 4W-220. Anyone know of any around?

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Big Bud Tractor on North Dakota Auction

Mar 28, 2014

BigBud525 50 ND pic3

Big Bud.

Like a phantom, they sometimes appear. You might be driving along a country highway somewhere and spot one out at work in the field...."hmm, that was an awful BIG white tractor I think I saw." You crane your neck to see if it was what you thought it was. Maybe you loop back for a second look. Occasionally you might run across one in the classifieds, or on the internet, maybe a rare sighting sitting on a dealer's lot. 

But whenever you see one in person....you stop....you look....wow.

I'm talking Big Bud used tractors. I've been tracking auction sale data now for almost 24 1/2 years, all over the U.S. and Canada. I know how tough it is to find a Big Bud coming up for sale. Well, here one comes...on an April 4, 2014 consignment auction in Jamestown, ND, a sale by my friends at Orr Auctioneers. The picture above is of the 1980 Big Bud 525/50 with 1,440 hours showing for sale on this auction.

600 HP.

Yep, a bit turned up by the current owner from it's original 525 HP setting. I wanted to learn more about this tractor so I arranged for a video interview with auctioneer Troy Orr. I just posted the Youtube video preview (click on video below). A fun added feature: Troy arranged for a drone video cam fly around of the Big Bud sitting on their auction lot. Drone cam video action comes at the end of the video. We will have video of this Big Bud selling on the April 4th auction...stay tuned for that. How high will it go?? For now, here's the preview video...enjoy:

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Prices from Northwest Illinois Farm Auction Friday

Mar 15, 2014

 My friends at Mariman Auction Company held a very nice farm retirement auction Friday (March 14, 2014) in northwest Illinois. Very nice condition equipment on this sale in Geneseo, IL. Interesting variety color-wise...blue tractor, red combine, green tillage. Here are a few sale price highlights along with my comments:

2008 Ford-NH T7040 Tractor, 925 hours: $81,000

NHT7040 IL  81K

Pete's Point: "Obviously Specs are a huge factor when it comes to value. Here were the Specs on this T7040: MFWD, SN# 27BG02008, 180 HP, 925 hours, Super Steer, 18 speed Power shift, automatic shift function, custom headland management, full lighting, 4 remotes, 460/85 R42 rears, 14.9R30 fronts"

 

2001 CaseIH 2366 Combine, 1,718 engine hours: $78,000

CaseIH2366 IL  78K

Pete's Point: "Ave. Auction Price on last (12) CaseIH 2366's I've seen sold = $60,542...High $118,000; Low $31,000"

 

2005 CaseIH 2206 6R-30 Corn Head: $22,500

CaseIH2206 IL  22500

Pete's Point: "Ave. Auction Price on last (12) CaseIH 2206 corn heads sold = $20,146...High $26,750; Low $13,000"

 

2008 White 8202 12R-30 Planter: $28,500

White8202 IL  28500

Pete's Point: "On a 2/7/13 consignment auction in northeast Indiana a White 8222 12-Row Planter sold for $28,000"

 

(2) 2010 Demco 550 Gravity Wagons: $11,000 & $9,000

Demco550 IL  11K  9K

Pete's Point: "Ave. Auction Price on last (8) Demco 550's sold = $10,194...High $13,500; Low $7,800"

Ask Machinery Pete: Best Time of Year to Have Auction?

Mar 09, 2014

 AuctionSceneOverhead

From the "Ask Machinery Pete" Mailbag...got this email question today (March 9, 2014). The question and my reply:

Dear Pete: "I enjoy your posts and wonder if you could answer some questions for me. I am approaching retirement and would like your opinion on when is the best time to have a sale in the central Illinois and is there someone you would recommend to do the sale who is well respected and honest." - Greg G.

Pete Says: "Greg, glad you enjoy the posts! As for timing of auction....the past 5 years our data has shown that November - early March best time of year to have auction. The year end tax buying crowd has really grown, into a WAVE actually these last 5-7 years in Nov. & December with the IRS Sec. 179 tax writeoff for equipment purchases being the HUGE factor. This year (2014) however....we'll have to see as the writeoff $$ limit currently dropped down to hardly anything ($25,000 limit now vs. $500,000 in 2013). Congress will likely pick up legislation to up it back somewhere around $200K for immediate writeoff any biz asset purchase (new or used), the thinking goes Washington will try to address this come fall/election time so hopefully before year end.....but if they don't/haven't yet then it would be an open question if auction sale prices would still BUMP HIGHER end of year WITHOUT the tax writeoff bump?

All that said, general rule I'd say has been that good condition used farm equipment with some age on it has continued to sell well on farm auctions no matter when it sells throughout the year, or where the auction is. So here it kinda depends on your equipment line, what you have to draw buyer interest, etc.
 
No. of sales: this an important factor to chew on. One important reason sale prices on good condition equipment sold on farm auctions has remained strong even since price of corn dropped last year.....there just haven't been many auctions around. So when a nice sale DOES pop up.....my auctioneer friends tell me they get calls from very wide area, again - if good condition used equipment offered for sale. One issue I'm looking ahead and wondering about......will more farmers retire as the lower commodity prices linger and profitability is challenged? I think economics point to yes, will be more retirement auctions coming......that could begin to affect sale prices if we begin to see 25-50% more auctions showing up....more equipment for sale at same time fewer buyers looking to buy.....likely will = falling used equipment values....but most likely will show up mainly on the NEWER used equipment being sold, so 1-5 year old big ticket $$ stuff most exposed to eroding values, so 4WD tractors, self propelled sprayers, late model large combines, 24R+ planters, etc. Already seeing softer sale prices on that stuff....could go softer coming up???
 
As for central Illinois auction firms, I know many really good options. What town are you in? I think key thing when talking to potential auction firms is getting feel for how they get the word out......INTERNET is the key. They (auction firms) need to address how to let farmers in TX, MN, KY, PA know about your sale using the web....obviously without breaking the bank. Depending on what equipment you have for sale online bidding option and/or taking cell phone bids can be HUGE factor. Look for auction firms that have extensive mailing lists/customer lists built up, not just local but from WIDE area.
 
I hope this helps a bit. Keep in touch and let me know your plans. When sale time approaches, definitely reach out and get me yours sale bill, we will spread the word through our free "UPCOMING AUCTIONS" section of our www.machinerypete.com web site, try to send buyers your way!"
 

 

 

Tractors Sell High on Pennsylvania Farm Auction Saturday

Mar 02, 2014

Wow, talk about nice tractors. 

Below are pics & sale prices on (8) beautifully kept used tractors sold on a farm auction yesterday, Saturday, March 1, 2014, in Marble, PA (northwest Pennsylvania). These super nice tractors drew in a crowd of over 1,200 people to yesterday's sale. (2) new record auction sale prices set...on the 1999 CaseIH 8950 ($90,000) and the IHC 584 without loader ($10,400). Here's the rundown, enjoy:

1999 CaseIH 8950, 3,325 hours: $90,000  (new record price! Old record price: $88,000)

CaseIH8950 PA  90K pic2

 

1979 IHC 1086, 4,700 hours: $20,500  (9th 1086 sold over $20K in last 10 years)

IHC1086 PA  20500

 

1976 IHC 986, 6,180 hours: $17,500  (2nd highest sale price since May 1999)

IHC986 PA  17500 pic2

 

1989 CaseIH 7140, 3,720 hours: $50,000  (2nd highest price on 2WD 7140 in 18+ years)

CaseIH7140 PA  50K

 

IHC 584, 1,748 hours: $10,400  (new record price for 584 sold without Loader)

IHC584 PA  10400

 

1999 JD 7610, 4,100 hours: $55,000  (Tie 4th highest price on 2WD 7610 in 14 years)

JD7610 PA  55K

 

2000 JD 7810, 2,745 hours: $82,000  (18th 7810 sold for $82K or more since 2007, from 1996-2006 how many sold over $78,000...0)

JD7810 PA  82K

 

1997 JD 8400, 5,110 hours: $81,500  (Ave. Auction Price last year: $60,353)

JD8400 PA  81500

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