I don’t usually like to hit the same topic twice in a row. But there are exceptions, and this is one.
The last words from my previous column on the used combine market late in 2020 were, “Buckle up.” Forgive me for my understated Norwegian heritage, as “buckle up” was too mild of a predictive phrase. Bidding on good used combines was wildly hot from late November into early December
Wow. Or to put it the Norwegian way, “Holy lutefisk!” If you don’t know what lutefisk is, be thankful.
The rising prices of corn and soybeans had farmers in the buying mood big time in the last few months of the year. This demand was possibly looking to address 2021 equipment needs and help minimize the 2020 tax bite with the IRS Section 179 write offs — an annual buying force that went dormant from 2015 to 2019 when profits were tight. It is dormant no longer.
December saw a deluge of strong auction prices on combines. Here are a few examples:
- 2018 Massey Ferguson 9545 with 644 engine hours: $234,000 at a Dec. 10 auction in central Illinois.
- 2018 Case IH 7240 with 474 engine hours: $279,000 at a Dec. 10 auction in northeast Iowa.
- 2018 Claas Lexion 760TT with 553 engine hours: $274,000 at a Dec. 10 auction in southeast North Dakota.
- 2014 John Deere S670 with 1,143 engine hours: $170,000 at a Dec. 10 auction in northeast Colorado.
- 2015 Case IH 7240 with 1,665 engine hours: $172,000 at a Dec. 9 auction in northeast Kansas.
- 2019 John Deere S790 with 747 engine hours, tracks: $404,000 at a Dec. 3 auction in northeast Iowa.
Here’s a little perspective to go with the data. The price on the last combine (the 2019 John Deere S790) was the highest price ever on a combine. In my last column I shared a 2019 John Deere S780 sold for $400,000 during a central North Dakota auction on Oct. 29. That record lasted only 35 days.
The first combine highlighted (2018 Massey Ferguson) sold for $234,000. The current average dealer advertised price on 9545s is $245,483.
Here are two more examples, both older John Deere 9670 STS combines:
- On Dec. 3, a 2011 model with 1,672 engine hours went for $147,000 at a farm auction in southwest Iowa.
- On Dec. 5, a 2010 model with 1,348 engine hours sold for $145,000 at a farm auction in northwest Ohio.
These are the two highest auction prices on 9670s in 28 months.
Combines weren’t the only hot market in late 2020. I’ll share more insights in future columns. For now, buckle up and stay tuned.
Machinery Pete is the most trusted name in farm equipment. Visit MachineryPete.com for Pete’s latest analysis, as well as equipment for sale and FREE auction sale price data.
