Even in the most challenging economic times, there are opportunities for those in a position to take advantage of them. Be on the lookout for these:
- The time to be a buyer is when others don’t feel like buying. It’s the theory of opposites at work. There will be a tremendous opportunity in 2017 to upgrade to late-model, used equipment at great deals; a second planter or combine, maybe a sprayer. Many dealers are offering great bargains because new equipment sales have been slow for a while now. When the market turns around, there could be a surge of farmers looking to buy. You could get a great deal if you can afford to beat the rush.
- It pays to take care of your equipment. That has never been more true than now. Have a friend or relative pull out a cellphone and video you planting and harvesting. Save those videos on your phone or computer. They will be important down the road, when it’s time to sell or trade. Personalizing what you are selling makes it worth more and video is the best way to show what the tractor or planter meant for you.
- The number of machinery auctions will likely increase during the first half of the year. Watch for sale prices to slightly soften by mid-March to early summer. This is the pattern we’ve tracked from 1990 to 2006, and I think we could return to this pattern in 2017.
- Pre-Tier 4 used tractors will likely be more sought-after in 2017. Auction companies and dealers are using this language in their tractor ads: “For sale with engines before the latest emissions standards were implemented.” When a pre-Tier 4 tractor is up for auction, buyers take more interest.
- Consider out-of-season purchases for better deals on used equipment. In the fall of 2016, we saw stronger prices on used harvest, grain-handling and tillage equipment and more search traffic to these categories at www.MachineryPete.com. It doesn’t take an economic downturn to know buying out of season can save you a few dollars.
The editors at AgWeb.com are taking a look at experts’ projections for a variety of commodities in 2017 to help you succeed and be profitable in the coming year. Tune in periodically over the next six weeks as we add outlooks for corn, wheat, cotton, cattle, machinery and more. Read all the outlook pieces here.