As the U.S. corn harvest is 60% completed, farmers are seeing a potential financial tailwind. Strong export sales to China, ARC/PLC program payments and $8 billion to potentially help cover higher fuel costs are on the financial horizon for farmers.
“We’re hearing that if approved, the government is going to send farmers the money. It’s not going to be one of these programs where farmers will have to fill out paperwork before the checks get mailed,” says Clinton Griffiths, co-host of the Moving Iron Podcast.
Despite the additional help, machinery sector expert Casey Seymour warns growers against letting taxes or the calendar influence their machinery purchases. Chasing year-end Machinery Section 179 depreciation deductions can leave an operation starved for working capital in the spring if cash flow is not properly evaluated.
Financial experts would say that cash flow is more important than avoiding a tax bill, that is why Seymour recommends prioritizing other input costs and necessities such as seed, fertilizer and fuel.
“If you’re already in the market anyway, by all means it makes perfect sense. I think it’s a smarter play a little bit to take a look at where you’re at input-wise before you start looking at equipment,” Seymour says.
Machinery Pete also shares that 23 out of the last 25 years, farm machinery auction prices have risen in November and December. He explains that it is in the farmers DNA to bid on equipment, despite it being the most expensive 60-day window.
“So my advice would be if you were looking to buy, what’s your timeline? Because if your timeline is a little bit longer, from a numbers gambling perspective, your chances would be better when the calendar flips,” Machinery Pete says.
Rethink the Fleet: Lease, Buy, or Retrofit?
With interest rates reaching as high as 8.75% and new machinery prices continuing to trend higher, a large part of the farmers’ money could end up going to non-equity interest expense. Instead, Seymour says farmers should meet with an accountant and consider whether it’s better to lease or buy. He recommends growers meet with their accountants to see which option better protects their operation financially.
For growers looking to upgrade without spending half of a million dollars, retrofitting their existing equipment is an option.
“You don’t have to go out and get the latest and greatest tractor off the shelf,” Seymour says. “You can get those little components to make things work.”
Retrofitting existing fleets allows farmers to extend their machines’ lifespan while achieving modern performance. This technology also explains why farmers are turning their attention to quality used low-hour machinery.
One example: an auction in Forest Junction, Wis. saw a 2015 CLAAS Lexion 740 with 320 hours sold for $275,000. This is the highest auction price on a 2015 model combine in almost five years according to Machinery Pete.
However, supplies of late-model machinery are noticeably tighter. Machinery Pete says there has been a 69.2% drop in the number of one-year-old sprayers sold at auction compared to Jan. 1 to Oct. 21 of 2024.
Machinery Pete’s most recent Pick of the Week highlights just how competitive the market is for late-model machinery. A 2025 John Deere 412R sprayer with 591 hours, See & Spray technology and a 120-foot boom sold for $447,000. The 412R set this year’s benchmark price for that model.
The Best Deals May Be on Dealer Lots
With high demand and limited supply fueling bidding wars at auction, Machinery Pete recommends farmers looking for a bargain search closer to home.
As auction values for premium used iron increase, local dealerships—often offering financing incentives or warranties—may actually offer a better value. Some dealerships even have a reduced interest rate for a period of months in order to encourage prospective buyers.
“Instead of thinking of the auction as a bargain, go visit your dealer’s lot, and [then compare it to] what this stuff is bringing at auction,” Machinery Pete says.
Listen to the latest “Moving Iron” podcast for more from Machinery Pete and Seymour as they continue to follow developing trends on new and used machinery sales.
