Machinery Pete: Strong Market Flips Trend

 
Machinery Pete: Strong Market Flips Trend

I’ve seen a lot of New Holland 256 hay rakes sell at auction in my day. To be exact, during the past 19 years, that number is 332. 

Prior to 2014, the highest sale price I had seen for a like-new New Holland 256 was $2,975, which occurred at a May 4, 2005, farm auction in north-central Kentucky. That changed at an April 19, 2014, farm auction in east-central Wisconsin where two New Holland 256 rakes sold. One almost caught up to the record price, coming in just under at $2,800. The other did set the record when it sold for $3,500.

The strength in the livestock and dairy sectors in 2014 helped push values higher on good, used hay and forage equipment. 

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This 2004 Claas Rollant 160 round baler sold for $18,750 on April 9, 2014, at a southwest Michigan farm auction.

To further illustrate, I also saw several strong auction prices on small square balers. At a Jan. 4, 2014, farm auction in west-central New York, an older John Deere 336 baler in good shape brought $6,500, a new record-high auction sale price. That made the third consecutive year a new record high auction price had been set on a John Deere 336 square baler. 

From 1996 to 2011, the highest auction price for a John Deere 336 baler was $4,500. At a Nov. 24, 2012, farm estate auction in southeast Minnesota, a John Deere 336 went for $4,900. That record lasted until a John Deere 336 sold for $5,300 at a March 16, 2013, auction in northeast Kansas.  

Just a few weeks ago, at a Dec. 15, 2014, farm auction in central New Jersey, a pair of nice small square balers sold. The 2011 Case IH SBX530 in like-new condition went for $10,500, and a 2012 New Holland 5070, also like-new, brought $15,000.

Used round balers in good condition also held their value and even appreciated in some cases in 2014. For example, a 2004 Claas Rollant 160 round baler sold at an April 9, 2014, farm auction in southwest Michigan for $18,750. Compare that price to another 2004 model Claas Rollant 160 that sold for $13,500 at a Nov. 7, 2013, farm auction in nearby west-central Michigan.

Also in Michigan, on Sept. 19, 2014, at a farm auction in the west-central area of the state, a 2006 John Deere 467 round baler that had logged 3,500 bales sold for $21,000. That was the second highest auction sale price I had seen on that model in 10½ years.

Before the about-face in the livestock and dairy sectors in 2014, the depreciation in values for used round balers year-over-year was aggressive. A couple of popular New Holland models show how this trend flipped in 2014. The average auction price for a New Holland BR7090 round baler in 2013 was $14,980. In 2014, that price inched up to $15,183. Likewise, the average auction price in 2013 for a New Holland BR780 round baler was $5,890, but it jumped to $6,066 in 2014.

Watch for bidding competitions at auctions to be stiff and strong values to continue for used hay and forage equipment in good condition as long as vibrant profits persist in the livestock and dairy sectors.  

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