With fall auction (and college football) season fully upon us, Moving Iron hosts Casey Seymour and Greg “Machinery Pete” Peterson are paying close attention to how the used equipment resale market shakes out over the next few months.
According to Pete, last year was just the second fall auction season in the past 22 years that saw an overall drop in used machine values, but there are signs this fall will reverse that trend. That would be a positive development for dealers and private sellers looking to get good value for their used equipment at auction.
“I mean, if we get a little positivity in the market, if that continues, it might point toward maybe a stronger end of the year,” Pete says.
Pete also thinks interested buyers need to be aggressive now, because we might have hit the bottom of the market this summer and prices are only going up from this point forward.
Two used machines sold at a Big Iron Auctions sale in Illinois this week; the results show there are still good deals floating around in the auction market, but it is anyone’s guess how long that lasts.
A 2014 John Deere S680 combine with 3,340 operating hours sold for $69,000. Last year, the average auction price for that same model/year combine was $80,185, and the year prior it was right at $99,000.
And a 2017 John Deere 8370R tractor with 4,499 engine hours on it sold for $127,850, which is well below the average auction price of $182,500.
Seymour and Pete are also keeping close tabs on the upcoming Sept. 12 USDA corn production report. A rise in corn futures following the release of that report could increase used equipment buying activity significantly.
“I think if we start to see more people coming to the table to buy stuff, then we’ll see some organic growth in prices,” Seymour says. “But it feels like there could be some volume at the end of the year that gets gobbled up because of this, and that could bleed over to that first quarter [of 2026].”
Commodities Analysis
Chip Nellinger, co-owner, Blue Reef Agri-Marketing, says fall harvest is now underway south of I-70, but a lack of moisture in the Eastern Corn Belt and increased crop disease pressure throughout the Midwest have corn and soybeans on separate paths.
“In the case of corn, you have yields coming down, but demand is phenomenal, arguably in some segments the best it’s ever been, you combine that with shrinking yields, and it can become somewhat explosive,” Nellinger says. “[It’s] kind of the opposite in beans; yields are probably coming down, but we’ve yet to see any movement on a Chinese trade deal.”
High Plains Update
Aaron Fintel, used equipment specialist, 21st Century Equipment, joined Seymour to break down how machinery specs and different features drive resale values both regionally and nationally. Fintel says smart buyers must have a conversation with their dealer during the purchasing process so they know which machine specs used equipment buyers are looking for.
For example, combines with four-wheel drive and “Tri-Power” (power fold, power cast and power rear) are critical specs for high resale value. In the tractor segment, PTO shafts and high flow hydraulics are the current must-haves.
“With that third and fourth buyer paying more attention [to machine specs] it’s as vital as ever to get the right specs,” Fintel says. “Even if the guy has ordered the same thing for 30 years, there needs to be a discussion [with the dealer] all the time, because with how technology drives so much in ag right now, things change weekly.”
Head over to YouTube to watch the full episode. Hit the “Thumbs Up” button to “Like” the video and click on the “Subscribe” button to get a notification when a new episode drops.
Your Next Read: Eyes On Mississippi River Levels: A Developing Situation
