New equipment was on full display at the National Farm Machinery Show this month in Louisville, Ky. Greg Peterson, Machinery Pete, says optimism in the new year seems to be up from a year ago, which is being reflected in used equipment sales and prices.
“Used equipment has been actually really strong since the end of 2019,” Peterson says. “It's surprising to a ton of people, but in January and February, used equipment values - on good used equipment - are actually up a little bit.”
The start of the year may look promising for used equipment, but Peterson is interested to see if that trend holds. He says some of the optimism is coming from signed trade deals, including the phase one deal with China.
“Even if it hasn't shown up in the commodity markets yet, it seems like an attitude bump,” he says. “The cost of new is what it is. So, that option of a good used piece of equipment, there's a lot of a lot of interest in those out there.”
Market facilitation program (MFP) payments helped prop up prices and interest in used equipment to close out 2019, according to Peterson.
“I don't think there's any question that helped to use the equipment values and interest in new,” he says. “It is hard to quantify, but I think looking back throughout 2019, I think it helped keep things a little bit steady, and then a little bump here as we head in early 2020.”
Search traffic at MachineryPete.com shows interesting results to kick of the new year, including growing interest in large horsepower tractors, planters and combines.
“When I see search traffic be strong that marries with what we're seeing on the auction market,” Peterson says. “We’ll just watch me to see how long that holds.”