Despite the struggling farm economy, equipment values are standing their ground. In fact, the Association of Equipment Manufactures (AEM) just released a report that shows tractor and combine sales were up in 2018. Meanwhile, used equipment continues to hold its value, according to Greg Peterson, Machinery Pete.
“Good condition, used equipment is still holding its value really, really well,” Peterson told U.S. Farm Report host Tyne Morgan at the National Farm Machinery Show.
According to Peterson, machines that are one to three years old with a warranty intact, continue to sell well. The surprise is in the decade-old equipment.
“The older 8- to 10-year-old stuff is red hot if it’s in good condition,” he said, adding he recently blogged about a 10-year-old John Deere 4330 sprayer that sold at an auction for $152,000, which was the highest auction price in 20 months.
Looking forward to values for the remainder of 2019, the question is how long the money will last, Peterson said.
“At auction, we’re seeing a lot of older farmers retiring. Whether that’s just to slow the equity train or not, their late model equipment has been selling well. But as we go forward, the longer we stretch these lower commodity prices out, that’s a stressor we’ll have to see,” he said. “One underlying truth of the market is when things are tough, more emphasis does tend to shift to the used market to save money.”
