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Falling Like Dominoes

February 10, 2010
By: Greg Peterson, Machinery Pete

What’s falling, you ask? The answer is record-high auction sale prices on all types and models of good-quality used farm equipment. Where are these record sale prices coming from? That answer is from all over—Nebraska to North Carolina. I’ve observed that things have really ramped up since this past November when commodity prices spiked higher.

 

This data makes it feel like it’s late 2007 and early 2008 all over again. I could point my commentary on today’s auction data in almost any direction and show you record-high sale prices on used tillage equipment, grain handling equipment, older combines in real nice shape and, of course, tractors.
 
So let me just narrow the focus for you a bit. I’ll zero in on used Case IH 200 hp and higher tractors sold at auction.
 
Look at the examples I’ve highlighted in the data table below (you can download an extended data table with 34 listings at www.ImplementandTractor.com).
 
This sale price data is from January 2010 to January 2011. Notice the 1989 Model 7140 and Model 1997 8940 that are featured. These two tractors were sold three days apart in late January 2011 in Illinois. The highest auction sale price I’ve ever seen in the U.S. for a Case IH 7140 is $61,500, and I’ve seen a lot of tractors sold in the past few years.
 
Ditto on the Case IH 8940 that sold for $92,000. There are three other tractor sales in this table that are also record-high auction sale prices.
 
Things are getting crazy out there. I was a speaker on the Linder Farm Network (Minnesota regional ag radio network) annual "Ag Outlook" tour. After my talk on the current state of the used equipment market on Day 3 of the tour in Marshall, Minn., a farmer came up and said he and his father had just bought a new John Deere 8225R tractor. It was delivered and had sat unused in their machine shed for a couple weeks.
They got a phone call from the dealer who wanted to buy it back for $20,000 more than he sold it to them for.
 
I think it will pay significantly to stay plugged in to changing current used equipment values in 2011.

 

AuctionAction JanFeb2011Table

 
  

 

 
 
 
Greg Peterson researches and analyzes auction prices. At www.machinerypete.com, his Web site, you can find databases of auction sale prices on 75 categories of equipment. Subscription information is available online or by phone, (800) 381-0423.
 
 

 

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