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Sep 18, 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.

1938 Minneapolis-Moline UDLX Sold for $142,500 on Indiana Auction

Aug 30, 2014

 MM UDLX IN  142500 4

A very, very rare and unique tractor sold at auction today (August 30, 2014) on a northeast Indiana collector auction...a restored 1938 Minneapolis-Moline "UDLX" tractor. This tractor (pictured above) was owned by Paul & Kay Weiss. The Reinbeck, IA couple spent the past 25 years painstakingly restoring this tractor.

So, what did it sell for?? See for yourself, here's Youtube video of the UDLX selling....wow:

Minneapolis-Moline came out with the "UDLX" comfort tractor in the late 1930's. They were obviously WAY ahead of their time in addressing the "comfort" needs/wants of farmers. Their goal was to have the UDLX combine the tractor and farm pickup...so farmers could work with it in the field and week then drive it into town on Saturday night, or to church on Sunday morning. Sales of the UDLX were poor, due mostly to high cost and the poor economy of the late 1930's.

But how cool to see this unique bit of agricultural history being appreciated to the degree it was today on the northeast Indiana collector auction.

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Amazing JD Tractor Collection - Pics

Aug 26, 2014

OpenHouse3 

I'm not going to mess around with too many words here.

I'll just the amazing pictures do the talking. My friend Kevin Sykes with Willow Run Farms (willowrunfarms.net) in Oriskany Falls, NY had an open house event recently to show off his incredible collection of low hour, beautiful John Deere tractors he owns with his brother Keith. Here are some pics from the event...enjoy:

JD 30-40 Series

JD30 40Series

 

Farmfacelift1

 

Taking a look...wow

OpenHouse

 

JD 55 Series

55Series

 

JD 4440 with 1,401 Hours

JD4440 1401hrs

 

JD 4455 with 502 Hours

JD4455 502hrs

 

JD 4000 - 2nd to last Power Shift

JD4000 2ndtolast4000PS

 

JD 4320 Power Shift

JD4320 PS

 

JD 4055 with 996 Hours

JD4055 996hrs

 

JD 4555 with 996 Hours

JD4555 996hrs

 

JD 4240 with 892 Hours

JD4240 892hrs

 

1972 JD 4020 - Low Hours

JD4020 72 lowhrs

 

JD 7810 with 2900 Hours

JD7810 2900hrs

 

JD 4240

JD4240

 

JD 4240 with 2,579 Hours

JD4240 2579hrs

 

JD 4255 with 1,012 Hours

JD4255 1012hrs

 

JD 4255 with 1,260 Hours

JD4255 1260hrs

 

JD 4255 with 1,998 Hours

JD4255 1998hrs

 

JD 4320 with 2,316 Hours

JD4320 2316hrs

 

JD 4430 with 2,651 Hours

JD4430 2651hrs

 

JD 4430 with 2,869 Hours

JD4430 2869hrs

 

JD 4430 with 2,896 Hours

JD4430 2896hrs

 

JD 4455 with 1,756 Hours

JD4455 1756hrs

 

JD 7210 with 1,289 Hours

JD7210 1289hrs

 

JD 8310 with 1,757 Hours

JD8310 1757hrs

 

Long view

ViewPulledBack

 

Putting them back in the shed

puttingaway1

 

puttingaway2

 

Here's a walk through Youtube video I shot last summer with Kevin giving us a walk through commentary on all these JD tractor beauties:

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Not Surprised by Equipment Mfg. Layoffs

Aug 16, 2014

DealerAuctionAugust2014 pic 

Can't say I was surprised.

About John Deere's announcement Friday (August 15, 2014) regarding the layoff of 600+ manufacturing employees at various sites in the U.S. due to the slowing demand for large ag equipment. No, not surprised given the realities at play currently:

1. Sharply lower commodity prices

2. Tremendous excess of large late-model (1-4 year old) used equipment on dealer's lots all over the country, particularly 4WD tractors, combines, self-propelled sprayers and large (24-row+) planters

3. The sheer amount of new large farm equipment that has been sold over the past 8 years

www.agweb.com/article/deere/lays_off_600_workers_NAA_Alison_Rice/

Now, although I'm not surprised with these new manufacturing employment layoffs, I of course do feel for those employees. No one likes layoffs. No one. Not Deere or any manufacturer. But I think a very needed step here, again given the current realities. Point 2 in my list above is a key factor. As I've written and blogged about often here the past 15+ months, implement dealers and particularly the large dealer groups with 6, 8, 10+ stores have a real issue on their hands in terms of excess inventory on large late-model used equipment. Each of these items on their books can be listed at $200,000, $250,000, or $300,000+. That's for 1 piece of equipment. Now multiply by the 10, 20, or 30+ large tractors, combines, or planters that dealer group may have on hand. Yikes.

Deere and other equipment manufacturers know conditions for new equipment sales are directly affected by this large overhang of late model used sitting on dealer lots all over. 

Time to move 'em.

So covering the auction market as I do, I'm seeing more large implement dealer inventory reduction auctions beginning to pop up, like the image above at the top of this blog, a sale bill image from a dealer inventory reduction auction this past Tuesday (August 12th) for an 11-store John Deere dealer group in eastern Iowa. We're just sitting at the beginning of this process right now.

Lots more big dealer inventory reduction auctions are coming. My sense is many dealers and dealer groups are waiting until year end 2014, hoping (like mad) that Congress will pass legislation to bump the IRS Sec. 179 business asset write off limit back up towards 2013's record high level of $500,000 for immediate write off. The current 2014 Sec. 179 business asset write off limit is only $25,000.

$25K doesn't make much of a dent in a $400K or $500K+ new tractor, combine, forage chopper, sprayer, etc.

Again, I think Deere and other manufacturers are reading this situation the right way, working to tighten up new equipment inventories. I know many dealers are happy at the tightening. One thing that wouldn't be good...for anyone...would be too much new equipment on top of too much late model used equipment.

Seen through another lens, used farm equipment values have been on the slide since 2nd Qtr. '13 after commodity prices began to sag. Here's a graph showing my Machinery Pete "Used Values Index" quarterly report. This graph for the overall farm equipment market based on all the actual auction sale price data I've been compiling now for 25 years:

Index2ndQtr2014 Overall pic

See how used equipment values have been sliding lower since 2nd Qtr. '13? This has mostly been due to softening auction sale prices on those large late model grain equipment related items, so 4WD tractors, 200+ HP tractors, combines, large planters, etc.

But as I've pointed out often, here and in print in Farm Journal magazine and daily on our Machinery Pete Facebook page (www.facebook.com/machinerypete), not all auction sale prices are dropping. No sir. Auction prices have risen on used livestock related equipment here in 2014. Risen big time. Also on 15+ year old equipment in very good condition I've been seeing holding to RISING values...like this 1997 CaseIH 8940 tractor with 2,675 hours sold for a record-tying auction sale price of $92,000 on a July 24, 2014 farm auction in southeast South Dakota:

CaseIH8940 SD  92K

Or this 1999 JD 7810 tractor with 1,050 hours sold for a record high auction sale price of $141,000 (converts to $129,139 U.S. $$'s) on an August 2, 2014 farm auction in Ontario, Canada:

JD7810 ON  141K

What's in store for the rest of 2014 in terms of used equipment values? Well, it certainly will be an interesting 4 1/2 months ahead. One prediction....we'll see more large dealer auctions coming. Stay tuned.

 

Record Prices on IHC 1566 & 806 Tractors Today on Minnesota Auction

Aug 14, 2014

OstranderMN IHCtractors (2) 

Man did I have fun today.

So did all the other folks at the Carmen Start farm retirement auction just outside of Ostrander, MN (southeast Minnesota). We saw (2) new record high auction sale prices set...on the 1975 IHC 1566 with only 450 actual "1 owner" hours and also on the 1966 IHC 806 diesel with 2,338 hours. I posted an "auction preview video" in our Machinery Pete Youtube channel (www.youtube.com/machinerypete) earlier this week and the video, as I suspected it would, generated a TON of interest...5,000+ "views" in a couple days. Always SO much interest from far and wide whenever these really low hour, 1 owner, original condition tractors show up for sale.

One of the most fun moments for me today was when the Gehling Auction truck rolled up to the IHC 1566 and auctioneer Ron Gehling began to tell the crowd about it...it got QUIET...FAST. I've seen this happen so many times over the years. It never gets old. Here is a Youtube video I just posted of the 1975 IHC 1566 selling for...$45,000 (new record auction price):

The previous record auction price I'd seen on an IHC 1566 was $25,000, all the way back on an August 26, 2004 farm auction in southeast Iowa for a 1976 model 1566, black stripe, with 1,326 hours. So $45,000 today blew that away.

The other new record price today was $16,750 on the 1966 IHC 806 diesel with 2,338 hours (pic below). The previous high sale price was $16,000 for a restored 1965 806 Wheatland sold on an August 6, 2011 Mecum "Gone Farmin" collector auction in southeast Wisconsin.

IHC806 MN  16750

90 year old Carmen Start retired back in the late 1970's and simply put these IHC tractors in his nice and tidy shed...and there they sat, started up twice a year faithfully by meticulous Carmen, but out they came this week for the auction and folks all North America and beyond enjoyed seeing and learning about them and then finally bidding on them today at the auction. 

As I said, man did I (we) have fun today.

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What a picture: Picking Big Rocks in the 1800's

Aug 01, 2014

StoughtonWI 1

Ever think you have it rough? Imagine farming in the mid 1800's.

Pictured above is a Stoughton Wagon Works machine picking large stones from a farm field near Helenville, WI back in the 1800's. The pic was sent to me by Richard Heine on our Machinery Pete Facebook page (www.facebook.com/machinerypete) last week. Richard said that's Ed and Julius Heine in the picture. Julius is Richard's great grandfather. Richard and his children are the 5th and 6th generations on the Heine farm.

Richard initially sent me this picture:

Stoughtonpic

He asked me: "Pete, you ever see one of these sell? I'm looking for a value for insurance purposes."

My reply: Umm, what the heck is that thing?

Thus began my enlightenment phase. Richard wrote back with some interesting history on this contraption. "It's been in the hay barn forever. As a kid I hated this thing, always stacking hay around it. Now it's one of my prize posessions."

Richard said they recently fixed it up. "We replaced the bad dry rotted wood and linseed oiled it."

As for what it's worth...with no corresponding auction sale price data to go on, I'm going to say it's simply priceless.

StoughtonWi 2

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