Used equipment values have been on a rocket-ship ride during the past seven years. It’s easy to say that, but can I back it up? Let’s look at some hard data to prove my point.
Specifically, let’s look at sale prices from two farm auctions in the same geographic region: one in west central Indiana on Jan. 12, 2011, and the other across the border in east central Illinois back on Jan. 15, 2004.
Wow, pretty eye-opening stuff! Here are some of the strongest examples from the chart below. First, a 13-year-old John Deere 8100 2WD tractor sold for 50% more than a similar one sold for in the same area seven years ago.
Next, compare the John Deere 8420 and 8400. Each tractor was seven years old when it sold at auction. The 8420 sold for nearly double what the 8400 went for back in 2004.
You’ll see the same trend in combines, with the John Deere 9560 STS and 9510, example. The seven-year-old 9560 sold for nearly double the price of what the five-year-old 9510 sold for seven years back. Ditto on the John Deere 693 corn heads, the Case IH 496 disks and the John Deere 980 field cultivators. Each sold for around double the money on the January 2011 auction.
While I’m on the subject of "wows," we have compiled 267 auction sale prices on John Deere 8100 tractors from 1995 to 1999. I had never seen one top $90,000 at auction. Until this past November, that is, when a 1997 8100 MFWD with 1,455 hours sold for $91,000 on a farm auction in east central Nebraska. What’s most surprising about that record-high price is that it lasted less than two months.
The current record was set on Feb. 10, 2011, at a farm auction in the same area of east central Nebraska. I was there to shoot video, which is available on You- Tube. A 1999 John Deere 8100 MFWD with 1,191 hours sold for $97,500.
Like I said, used values have been on a rocket-ship ride. Seems like they are headed to the moon.
Greg Peterson researches and analyzes auction prices. At his website, www.machinerypete.com, you can find databases of auction sale prices on 75 categories of equipment. Subscription information is available online or by phone, (800) 381-0423.