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October 2013 Archive for 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.

JD 9570 STS Combines: Prices & Upcoming Sales

Oct 28, 2013

 JD9570 IA 11 2 13

What do I love about covering farm machinery auctions the past 24 years? Looking back, but also always looking forward.

Looking ahead I see (2) very nice JD 9570 STS combines on upcoming farm auctions in Iowa in November. Pictured above is the 2011 JD 9570 STS with only 188 engine hours for sale on a November 2, 2013 farm auction in Springville, IA, a sale by Hoge Auctioneering: www.hogeauctioneering.com

A bit further ahead I spy a 2009 JD 9570 STS combine with 675 engine hours on a November 21, 2013 farm auction in Red Oak, IA (pic below). This sale by the good folks at Rubey Auction: www.rubeyrealty.com

JD9570 IA 11 21 13

Looking back, what have nice JD 9570 STS combines been selling for at auction? Definitely the right question to ask if you're thinking of bidding on these babies. Here's a table showing 9570's I've seen sold at auction the past couple years:

Auction Prices on JD 9570 STS Combines

Year

Engine Hours

Cond. Price Area* Date Type of Auction
2011 211 Exc. $197,500 WCOH 1/24/13 Farm
2011 299 Exc. $199,000 SESD 8/8/13 Farm
2008 1,090 Good $135,000 NEIL 8/2/12 Consign.
2008 1,060 Good $160,000 WCIL 12/3/12 Dealer
2008 794 Good $170,500 WCIL 3/20/12 Cosign.
2009 648 Exc. $171,000 SWIA 9/1/12 Farm
2009 950 Good $180,000 SEIA 12/12/12 Dealer
2011 209 Exc. $203,000 WCIL 12/28/12 Farm
2008 1,267 Exc. $148,000 SWIA 5/26/11 Farm
2008 1,149 Exc. $155,000 SWIA 5/26/11 Farm
2009 600 Good $179,000 ECNE 12/3/11 Farm
2011 - Exc. $177,500 WCIL 11/22/11 Consign.
2008 381 Exc. $168,000 ECIL 3/2/10 Farm
2008 330 Exc. $181,000 NCIN 12/11/09 Farm

* Area: NCIN = north-central Indiana, etc. Data from www.machinerypete.com

It will be very interesting to see how this pair of JD 9570 STS combines sell on the (2) Iowa auctions. Farm auctions tend to produce "stronger" auction sale prices vs. large consignment or dealer/online auctions. Also, auction prices have cut "higher" during the 4th Qtr. each of the past 11 calendar years as tax motivated buyers pour into the used market. One more + working toward competitive bidding will be the fact that these smaller capacity used combines tend to be in higher buyer demand vs. the larger capacity machines (more big machines sitting on implement dealer lots, less price pressure). On the negative side, late-model combine values in general have been under pressure here the past 3 1/2 years.

Like I said, it will be interesting to see what they go for...stay tuned.

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Using Video to Sell Farm Equipment

Oct 25, 2013

I live in Rochester, MN...population 106,000+, an agricultural area here in southeast Minnesota, but Rochester is a professional town, the Mayo Clinic obviously, pushing 40,000 employees there. Wow. Rochester has a lively and growing farmers market, like many urban areas around the U.S.

As I pass by the local farmers market here in town on Saturday morning and see all the busy folks, young doctors, white collar workers, moms & dad with their young kids in tow perusing the fresh tomatos, green peppers, melons....it strikes me.

They are buying the seller.

It's just human nature. We all feel better buying when we feel good about who we are buying from. The more we know about them the better. Comfort level, familarity and trust all lead us to in fact, be willing to pay MORE for whatever it is we're buying.

Yep, even used farm equipment.

Think about it, over the years, all those farm auctions you've gone to. Which ones stand out? The ones where when you park your pickup and walk up the seller's drive you notice how neat the farmyard looks. You peek in the shed...immaculate. His line of equipment speaks to years of diligent care, always washed off, waxed yearly, never sat outside at night, complete & extensive service records right there for everyone to view. Guess how that equipment winds up selling? Yes sir, take it from a guy crazy enough to have spent the past 24 years compiling auction sale price data on all types of used farm & construction equipment sold all over North America.....that equipment sells HIGH. Why?

Because you are buying the seller.

The same principle applies when buying used equipment privately or through an implement dealer. When you get a greater sense of how the piece of equipment was cared for, who owned it, if everything is right you're willing to pay the bit of a premium to acquire that piece of equipment. Again, you're buying the seller.

Now, let's think about video and the world we live in today for a moment. Those cell phones we ALL carry around with us 24/7, most every one can shoot the most amazing HD video you'll ever see. See where I'm going with this? It's so simple it seems funny to write or talk about, but I've been doing just that for 2-3 years now. When you are running that combine of yours in the fall, or planting in the spring, pushing snow in the winter with your favorite trusty tractor....what should be thinking about doing?

Yep, shooting a bit of video.

Why you ask? Let's say 1, 2, 5 years down the road it comes time to sell or trade that combine/planter/tractor of yours. What if your son, daughter or grandkids had those video clips of your combine mowing through that beautiful bumper corn crop, video of your planter humming along through smoothly or your tractor in action making that wonderful familar sound you've grown to love? They can grab those fun little video snips and in the blink of an eye make a cool little video you'd have to show prospective buyers of your combine, planter, or tractor.

Remember, they are buying YOU.

How about if you are trading with your dealer? Again, think about being able to give your dealer that cool little video of your combine, planter or tractor doing its thing. Think about your dealer being to show that video to folks they'll try to sell to. Could your video make your equipment worth more and maybe easier for the dealer to sell? Maybe so. Might that mean your dealer would give you more $$ for your combine, planter or tractor in on trade? I don't think he'll give you less! You'd have just made it easier for him to sell YOU to the next buyer.

I shot and posted my first Machinery Pete Youtube video on July 31, 2009. I had no clue what I was doing. Our oldest daughter, in high school at the time, had to show me everything. It was so easy even an idiot like me could get the hang of it in short order. All I knew was the internet was on a high speed rush towards becoming a video medium. Change is only coming faster. Warp speed Scotty. I tell people, and its 100% true, I've never had more fun than I've had the last four years. Why? Youtube and Facebook. Connecting with a growing audience, relating in new ways, the ability to tell new stories about interesting equipment and people. Video is making this possible.

What got me yammering down this path tonight was an email I got tonight from my long-time friends at Sullivan Auctioneers in Hamilton, IL. Many of you know Dan, Jim and Joe Sullivan and crew, good folks, hard workers, expert marketers. I'm guessing the 3 Sullivan brothers maybe aren't expert video editors, but they know how to empower young people. Luke Sullivan shot and edited an auction preview video for their Dec. 6th farm auction near Athens, IL. They sent me the link to the auction preview tonight....beautiful....and SO smart. See the equipment you'll be bidding on Dec. 6th in action, watch that beautiful CaseIH 2588 combine roar past, see the golden grain flow into the bright Brent 776 grain cart, see the selling family on their farm...get to know them and their equipment. Watch for yourself:

Buying the sellers. See why & how video is a good idea?

Now the same age old theories are still at play. Best thing to do when selling is "tell it like it is". If it's a piece of junk, call it a piece of junk. Using video to try and make a piece of equipment seem better than it is....no good, very shortsited. Buyers will see through it when it gets right down it, and worse, they won't trust the next preview video you spit out. But.....using video to simply convey what I like to call...."realness".....that's where it's at. Show me farmer Joe's tractor next to farmer Joe's barn. Let me hear farmer Joe tell me about his tractor, let me see him behind the wheel.

I'm buying farmer Joe.

Like it or not, it's a video world and we're living in it.....even out here in the used farm equipment market.

www.machinerypete.com

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Farm Auctions Feature More New Equipment

Oct 22, 2013

CombinePic2 JD9870s IA 

It's not like it used to be.

I started covering farm machinery auctions 24 years ago, back in 1989. Obviously the '80's were a challenging time for all in agriculture. As I began compiling auction sale price data on sales from throughout the U.S. and Canada, working with our network of 950+ regional auction firms, I didn't run across too many farm retirement or estate auctions in the late 1980's, 1990's or first half of the next decade (2000-2005) that featured mostly new farm equipment.

Why buy all new stuff when you're going to retire in a year or two, right?

Well, we all know things have changed here the past 6+ years. Now as I continue to compile auction sale price data it isn't at all uncommon, especially the last 3-4 years, to see farm retirement or estate auctions with LOTS of almost new farm equipment. 1-year old tractors, 2-year old combines, grain carts, augers, planters, skid steers, mowers...you name it. The rising price of new equipment + the severe shortage of machinery auctions (55-60% drop vs. 2000 - 2005) + our nation's tax policy (allowing for IRS Sec. 179 immediate write offs for any business asset purchase, new or used, up to certain $$ levels...$500K in '13) has made for an attractive environment to bid on this "like new" used equipment when it has come up for sale at auction anywhere in North America.

Looks to me like we will be seeing quite a number of these type farm auctions, feautring a lot of late model, like new used equipment come November & December this year. One such farm retirement auction is a Nov. 2nd sale by Hoge Auctioneering in Springville, IA. Here are a few of the headline pieces of equipment on this auction:

2011 JD 9570 STS Combine with 188 engine hours

JD9570 IA 11 2 13 pic2

 

2011 JD 608C 8-row corn head

JD608C IA

 

2011 JD 625F 25' hydra flex platform, 500 acres, with 2011 Mauer M28 header trailer

JD625F IA Maurertrailer

 

2010 JD 8245R tractor with 564 hours

JD8245R IA 11 2 13

 

2009 JD 8230 tractor with 920 hours

JD8230 IA 11 2 13

 

2011 J&M 750 grain cart

J M750 IA 11 2 13 pic2

 

(2) 2010 Brent 644 gravity wagons

Brent644 IA 11 2 13

 

2013 JD 2210 30.5' field cultivator

JD2210 IA

 

2013 JD HX10 10' rotary cutter

JDHX10 IA

Like I said...LOTS of "like new" farm equipment. How will all this equipment sell? Stay tuned. Here is a link to the sale bill for this farm retirement auction on Hoge Auctioneering's web site:  www.hogeauctioneering.com/auctions/listing4.html

www.machinerypete.com

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Used Small Square Balers are Hot Sellers

Oct 15, 2013

JD336 SD  4600

Older small square balers are hot right now. Red hot.

Pictured above is a John Deere 336 sold for $4,600 on a September 28, 2013 small farm retirement auction in Alcester, SD (southeast South Dakota). I exchanged emails with the owner/seller of the 336 baler, Art Swanson, after the sale.

"All of my machinery was in good condition, clean, greased and field ready," said Swanson. "My auctioneer was Joel Westra. I think the (2) standout items of my sale would be the corn planter and the 336 baler as well as the JD 4440 tractor."

The corn planter Art was reffering to was a JD 7000 4-row wide sold for $3,300. And the 4440? A 1979 model with 5,833 hours sold for $26,000. Very solid sale prices indeed...but that JD 336 baler for $4,600...wow.

Actually this is the 4th very high auction sale price I've seen now in the past 11 months on JD 336 balers. Here's the scoop:

* $5,100: 4/6/13 farm auction west-central Missouri, 1 owner, low use

* $4,900: 11/24/12 farm auction southeast Minnesota

* $4,800: 9/14/13 farm auction southeast Michigan

* $4,600: 9/28/13 farm auction southeast South Dakota

$4,900 set the new record high auction sale price on JD 336's last November on the southeast Minnesota sale, only to be clipped by $5,100 on the west-central Missouri sale in April '13. Here's a pic of that new record setter:

JD336 MO  5100

 

Here's Youtube video I shot at the November 24, 2012 farm estate auction in southeast Minnesota where the JD 336 baler went for $4,900...tons of beautiful JD equipment on this sale:

It will be very interesting to see if this current trend of rising values on good older small square balers continues and if so, how long? Stay tuned....

www.machinerypete.com

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www.youtube.com/user/machinerypete

 

Record Auction Price on IHC 1468 Tractor

Oct 07, 2013

 IHC1468 IN  33250

IHC 1468 tractors are hot. Red hot.

The latest proof came on a September 26, 2013 online farm auction in northwest Ohio by my friends at Schrader Real Estate & Auction. The IHC 1468 pictured above with 4,685 hours, a V8 diesel engine, 1 owner, sold for $34,250 ($33,250 purchase price +$1,000 buyer's commission = $34,250)...a new record high auction price. This is the 4th time I've seen a new record sale price set on IHC 1468's in the past 3 years. Here's the tally with accompanying pics & Youtube video:

* $17,000: model year?, 5,834 hours, sold on 3/13/10 west-central Illinois auction. Video:

* $23,750: 1973 model, restored, sold on 7/6/11 northeast Kansas auction. Picture:

IHC1468 KS

* 31,500: 1972 modeo, 3,869 hours, sold on 7/14/12 northwest Iowa auction. Video:

* $34,250: model year?, 4,685 hours, sold on 9/26/13 northwest Ohio auction. More pics:

IHC1468 IN  33250 pic2

 

IHC1468 IN  33250 pic3

 

IHC1468 IN  33250 pic4

 

IHC1468 IN  33250 pic5

As I've been writing and blogging about for 2-3 years now, this segment of the used market featuring really good condition tractors from the mid 1960's - mid 1970's just keeps getting "hotter"...what I like to call "The New Collector Tractor". How long with this record sale price on IHC 1468's stand? Stay tuned.

www.machinerypete.com

 

 

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