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.
Farm Auctions Feature More New Equipment
Oct 22, 2013
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
2011 JD 608C 8-row corn head
2011 JD 625F 25' hydra flex platform, 500 acres, with 2011 Mauer M28 header trailer
2010 JD 8245R tractor with 564 hours
2009 JD 8230 tractor with 920 hours
2011 J&M 750 grain cart
(2) 2010 Brent 644 gravity wagons
2013 JD 2210 30.5' field cultivator
2013 JD HX10 10' rotary cutter
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