Aug. 10 was a tough day for a farm auction.
That, of course, was the day USDA’s crop reports came out and sent commodity markets diving lower—not exactly a boost to buyer confidence.
Hence, I wasn’t overly surprised to receive a sale-price report that day from a farm auction in north-central Iowa where prices were on the soft side. The auction firm included a note to me on the sale-price report: “Felt like the ’80s today, Pete.”
Location, Location. But it should be noted that this farm auction happened in an area suffering from very dry conditions in early August. In this low-profit ag environment we’ve been stuck in for four years, the “where” of a sale has become much more important.
For example, the very strong auction sale prices I began to see this past November came from areas that saw all-time record soybean yields. We might not like the price of soybeans. But for producers who had just put in the bin the greatest yield they’d seen in 20, 30 or 40 years of farming, it tended to make them more likely to bid once or twice more on that item for sale.
One other important factor is which items are up for sale. Anything under 150 hp in good condition is in strong buyer demand, hotter for tractors under 100 hp.
Different Trends. I’ve seen some softer auction sale prices on used 4WD tractors sold at auction since June. One example in the data table on this page is the 2004 John Deere 9320 with 2,861 hours that sold for $74,000 at the Aug. 10 auction. The bareback model sold with duals.
Compare that soft price to the $81,500 sale price that a bareback 2005 model 9320 with 2,740 hours captured Jan. 28 at a consignment auction in northeast Missouri.
Data show stronger used track tractor values. More details soon.
Buyer Alert. Of course, softer pricing means better buying opportunities for producers who are in the market for this kind of equipment. It’s all in how you look at it. Hop over to MachineryPete.com and peruse the 1,121 4WD tractors in the 175hp-plus range for sale.
Greg Peterson is the most trusted name in farm equipment. Since 1989, he has compiled more than 500,000 auction prices, which he updates on his website, MachineryPete.com. Read his blog at AgWeb.com/machinerypete and subscribe to his YouTube channel at youtube.com/machinerypete.