The used equipment market has gained momentum since the middle of June and auction prices continue to climb as the end of the year draws near. Tightening supply and improved farmer sentiment are key drivers behind the surge.
Record Prices Signal Market Shift
For example, multiple records were broken at a retirement auction hosted by by Schrader Real Estate and Auction in Cambridge City, Ind., on Sept. 1:
- 2013 John Deere 8235R with 458 hours sold for $225,000, topping the previous record set three years ago by $5,000.
- 2002 John Deere 8420 sold for $190,000, the second-highest auction price on that model.
- 2015 John Deere 9420R with 902 hours sold for $320,000, the highest auction price in three years.
- 2008 John Deere 7230 with loader and 1,234 hours sold for $132,500.
- 2010 John Deere 9670 STS with 1,935 engine hours sold for $147,500, which is the highest auction price in two and a half years.
- 2011 John Deere 4730 sprayer with 785 hours brought $210,000, the second-highest auction price on this model.
Machinery Pete also points to a two-day span at the end of August when a pair of John Deere 4440s broke the record auction price of $85,000. On Aug. 29 in Adair, Ill., a 1980 model with 1,071 hours sold for $155,000. Two days later, an auction in Orleans, Ind., sold a 1982 John Deere 4440 for $91,300.
“If you have good used equipment now, I mean that’s what everyone wants,” Machinery Pete says.
Tight Supply Meets Growing Demand
The price surge can be attributed to a fundamental shift in farmer buying behavior combined with dwindling inventory. After years of a “defensive mindset” focused on preserving capital, farmers have extended equipment lifecycles and to avoid buying new. Machinery Pete and Casey Seymour believe used equipment prices will continue to trend upward toward the end of the year.
“The overall supply is tightening quite severely with this used stuff,” Machinery Pete explains. “Now we’re starting to see the ramifications of it, so it’s pointing toward a very strong finish to used auction prices for the end of 2026 and into 2027.”
Meanwhile, the formula for premium prices remains consistent: Gold Key equipment with one owner and low hours.
Improving Commodity Outlook Boosts Confidence
Rising commodity prices are also helping fuel the optimism. With $6 corn finally within reach and solid harvest yields materializing across the Corn Belt, farmers are feeling more confident about making equipment investments.
“It feels like we’re shaping up for a better year. By no means am I thinking it’s going to be anything wild and crazy,” Seymour says. “I think we’re going to have a good opportunity to get a lot of this equipment pushed off the lots and funneled back into the system during late October, early November and December.”
The combination of tightening supply, quality equipment coming to market through retirement auctions and stabilizing commodity prices suggests the used equipment market will remain robust throughout year-end and beyond.
Listen to the latest “Moving Iron” podcast for more from Machinery Pete and Seymour as they continue to follow the developing auction prices for used tractors.
