March continues to be a busy month for equipment auctions. According to Machinery Pete, there has been a 5% increase in the total number of machinery auctions so far this year. As producers shift away from buying new equipment, the search for high-quality used machinery with fewer hours has intensified.
Machinery Pete’s Pick of the Week highlights this trend, showcasing record-breaking sales and historic prices over the past month.
“The number of auctions is up, and a big part of that is driven by the guys at the top of the chain who maybe would just keep farming because they love it to their core,” he observes.
A standout example of this demand is a 1986 John Deere 4850 with 4,100 hours that sold for a record $80,500 on March 21. Despite a volatile global geopolitical landscape, Casey Seymour adds that auction values have remained remarkably resilient.
“The one thing we’re seeing so far with auction values is that they’re staying ‘stable’ compared to everything else around them,” Seymour explains.
The “Gravity” of Mid-Age Iron: Why Farmers are Flocking to Five- to 10-Year-Old Machinery
Farmers are increasingly gravitating toward equipment in the five-to-10-year-old range. Dealers report that this specific inventory is moving rapidly, with some lots selling out entirely. Conversely, one-to-two-year-old models remain scarce in the marketplace.
Seymour warns that this trend could leave buyers “stuck in a box,” as they are forced to compete for a tightening supply of premium older machinery.
“As you’re seeing these things come up, it’s like more and more gravity is being put on these pieces of equipment that are five to 10 years old,” Seymour says.
Machinery Pete notes that this market dynamic is unique in his 36-year history of tracking data.
“This is the first time in my 36 years I’ve seen values move higher when there’s not a component of corn and beans going up behind it,” he says.
Industry Experts Brace for Shifting Demographics and a Potential Drop in Active Buyers
The industry is also keeping a close eye on buyer demographics over the next 24 months. While older farmers are currently the most active participants at auctions, their imminent retirements raise concerns for future market demand. Seymour suggests these producers might begin stretching out trade cycles and making their current equipment last longer before finally “hanging up their boots.”
“I don’t feel like there’s going to be as many buyers as there are today, as we see come to [auctions] today,” Seymour concludes.
Listen to the latest Moving Iron podcast for more of Machinery Pete and Seymour.
