The last two months of the year are historically go-time for auctions. Machinery Pete says that trend rang true to close out 2025.
“It was semi-shocking what we saw in the auction market in November and December 2025. That stabilized market lifted and used values went up,” he says. “There’s a little more activity in January and early February, but early signs are pointing toward prices holding with what we saw at the end of 2025.”
When it comes to the rules of engagement, the current environment is defined by a lack of late-model inventory and a disciplined approach to buying.
As 2026 unfolds, Machinery Pete is particularly watching:
- An increase in sales volume typically means prices fall … but that’s not the case right now.
- When used auction values are lifting, it usually signals strength for new equipment sales. “This is the first time I’ve ever seen used values going up but new sales are crickets,” says Machinery Pete, referencing his 35-plus years in the machinery industry.
Here are the key trends shaping the used equipment landscape, as discussed by Machinery Pete and Casey Seymour in a recent Moving Iron podcast, which you can find on Farm Journal TV:
1. Scarcity Gap and Replacement Risk.
Used values are currently being propped up by a lack of supply at the top end. Machines with just a couple years of age remain elusive, and there isn’t a significant wave of late-model trades on the horizon to fill the void.
This scarcity is forcing buyers further down the age curve. As a result, clean, documented machines are the first to move and the last to see a price drop.
2. “Diamond-Shaped” Inventory Funnel.
The market is currently experiencing a “diamond-shaped funnel” in terms of inventory distribution. Used equipment for sale is heavily concentrated in the 3-to-5-year-old range, but there is very little late-model iron behind it and a dwindling supply of high-quality older machines to fall back on.
This concentration is forcing buyers into strict age and price buckets. The result? Widening price gaps where premiums are placed on specific hours and conditions rather than just the model year.
3. Auctions: The Great Truth-Teller.
While auction volumes are increasing — a move that typically softens prices — the market for “good iron” remains remarkably firm. Auctions continue to efficiently move clean, practical equipment, representing what buyers are willing to pay.
However, the auction block is also exposing the “laggards” faster than ever. If a machine’s condition is questionable or the specs don’t align with current demand, the market response is immediate and the discounts are steep.
4. Quality Over Commodity.
In the 6-to-10-year-old category, the days of treating machines like interchangeable commodities are over. Buyers are scrutinizing maintenance history, tire wear and overall presentation.
Two machines with identical hours can now see massive valuation spreads based on how they were cared for. “Just right” machines — those with documented service and high-quality wear items — continue to bring a premium, while anything with a “red flag” is punished by the market.
5. Redefining “High Hours.”
Economic pressures are forcing farmers to run equipment longer, effectively stretching trade cycles and flattening depreciation curves. This shift has reset the benchmark for what is considered “high hours.”
As farmers prioritize making the economics work over chasing the newest technology, demand has shifted toward durable, mid-aged machines. This trend places a higher premium on serviceability and uptime. Preventive maintenance and warranties are no longer seen as optional add-ons; they are now essential components of the machine’s total value.
Catch all things machinery on Machinery Pete’s Facebook and Farm Journal TV.
