Used combine values have been solidifying to even inching up a bit the past six months.
I know that can seem very surprising, but its the trend our auction sale price data from all across North America has been showing since early November 2016. Very interesting to me has been the fact that values on good condition used combines have held very firm since mid March...historically we've seen generally "softer" auction sale price values from mid March on through Spring into Summer.
Not this year.
More proof offered this week from a pair of auctions, one online and one a farm estate sale. On the http://www.bigiron.com online auction Wednesday (April 26, 2017) the 2011 John Deere 9770 STS combine pictured below, with 1,421 engine hours, from south-central Nebraska, sold for $133,750:
That sale price is actually right on the money. If you dive into our auction sale price data at http://www.machinerypete.com here's what you'd find when you filter the data further:
2011 John Deere 9770 STS Combines with 1,200 - 1,700 Engine Hours
* Avg. Auction Price last year: $134,750
* Avg Auction Price 2 years ago (2015): $138,400
* Avg. Auction Price 3 years ago (2014): $138,400
Remember, that is filtered auction price data to show you just 2011 models with between 1,200 - 1,700 engine hours. Interesting to note how the average auction price has pretty much stayed flat for 3 years now, that coming of course after a large drop in values from 2nd Qtr. 2013 through 2014.
I've been noticing that these one model series older used combines, in the 6-10 year old range have been driving lot of buyer interest the past 12 months or so. I recall filming an "On the Road with Machinery Pete" segment for US Farm Report TV show last October at Sloan Implement in Illinois (http://www.sloans.com) and owner Jeff Sloan telling us one of the biggest surprises of 2016 for them was the volume of used combines they'd been able to sell. Jeff mentioned in particular a high level of buyer demand on good condition 9770's.
I saw that buyer demand firsthand at a December 3, 2016 farm auction I covered in southeast Minnesota. Below is a Youtube video I posted of the 2011 model John Deere 9770 STS combine with 1,247 engine hours selling for $154,000, very active bidding. Everyone at the sale was talking about this combine:
But its not just the slightly older used combines that have been selling well, I've also been seeing very strong auction sale prices on very late model used harvesters, like the 2016 John Deere S680 with 723 engine hours sold for $292,000 on a farm estate auction Tuesday (April 25, 2017) in east-central North Dakota. Here's Youtube video I posted of that combine selling on a sale by our friends at the SteffesGroup: http://www.steffesgroup.com
And then there were the 3 unused 2017 New Holland CR9.90 combines with 15' heads that sold on a farm auction last week (April 18, 2017) up in west-central Manitoba, sale by good folks at Ritchie Bros Auctioneers http://www.rbauction.com. When converted into U.S. dollars they sold for $343,025 and a pair at $327,947. Very, very strong hard cash sale prices there I thought.
So what gives here? Why the solid to stronger pricing despite the still challenging ag economy? Well, one reason I think has to due with fact we've seen much lower sales levels of new combines for a while now, understandably so given the economy. With less new being sold, buyer demand been shifting toward finding and acquiring the very best used models available. Hence these strong prices we've been seeing.
Will this trend hold? Stay tuned.