Older used equipment in good condition continues to be a hot commodity on the auction trail. Machinery Pete points to a John Deere 4840 with only 884 hours that sold for $86,000, beating the previous record by $14,000, on Aug. 15, and a 1980 John Deere 4440 with 1,071 hours that currently sits at $95,000.
“The price of new is nosebleed high and is staying high,” Machinery Pete says. “People assume collectors are buying these tractors, but from my experience, 75% to 80% of the time it’s people that want to use them.”
“If you’re looking at something that’s basically $150,000 or less, and it’s good, clean stuff, it’s going to sell fast and it’s going to bring a premium price,” explains machinery guru Casey Seymour.
Farmers have developed a shared mindset of looking for alternatives since new equipment prices are high, something that Machinery Pete has never heard of before. For example, a 2023 Kubota M6- 141 with no loader, one previous owner and 96 hours sold for $82,000. This is the highest auction price he has ever seen on an M6141 without a loader.
The tight supply of used, well-maintained equipment is keeping prices elevated. As a result, equipment with 3,500 hours is commanding a price that used to be reserved for equipment with 1,800 hours.
“Hard cash auction pricing can’t be a lead indicator for what farmers are thinking, feeling and writing checks for anymore. That just tells you where their head and heart are at,” explains Machinery Pete.
Auction Prices Gain Momentum
Auction prices declined late April and May but started to increase through June, according to Seymour. Machinery Pete describes the timing of this jump, from June into August, as “exceptionally rare.” Seymour believes this trend of increasing auction values is going to carry through the rest of the year and continue to compound.
Historically, every time this jump occurs, new sales are taking off at the same rate, but that’s currently not the case. If this trend does continue, farmers who wait to purchase machinery in the last quarter of the year will pay higher prices.
“To get this trend line moving this aggressively at this point in the calendar year, I’m a little, I guess fearful would probably be the word,” Machinery Pete says.
Listen to the latest “Moving Iron” podcast for more from Machinery Pete and Seymour as they continue to follow tractor auctions and their prices.
