I’ve lived in the Land of 10,000 Lakes (Minnesota) my whole life. I’ve never thought much about water shortages. That’s why the images of the dwindling Colorado River grab my attention. I really feel for folks out West grappling with that reality.
A lack of supply has consequences, and they are often severe.
That’s what we’re seeing in the farm equipment market. The worldwide supply chain mess and labor shortages have adversely affected the availability of new farm equipment. Farmers have money, but often they can’t buy the new iron they want.
Naturally, many farmers are looking at used equipment. Unfortunately, the supply issue is just as bad as the new market.
In 2023, used values have continued to rise. Here are just a few examples:
- Feb. 1 Bigiron.com auction from Kennard, Neb.: 2008 John Deere 8530 tractor with 5,014 hours sold for $210,250. That’s the second-highest auction price on an 8530.
- Jan. 26 farm auction in Walnut, Ill.: 2007 Peterbilt 379 with Cat C15 engine and 355,100 miles sold for $198,000; 2001 Peterbilt 379 with 519,479 miles sold for $152,250; 2007 Peterbilt 335 grain truck with 105,400 miles sold for $155,000 (a new record).
- Same Jan. 26 auction: 2018 Case IH Steiger 620 Quadtrac with 1,585 hours sold for $471,250, a record for two days (until one sold for $485,000 at a Missouri auction). 2012 Hagie STS12 sprayer with 1,743 hours sold for a near-record $321,500.
- Jan. 27 farm auction in Rockville, Ind.: 2009 John Deere 8230 with 2,819 hours sold for $179,000 (fourth-highest price on an 8230). Six of the highest prices on 8230s were set in the past eight months. 2007 International 4400 grain truck with 184,941 miles sold for $86,000. Seven of the eight highest auction prices on 4400 grain trucks were set in the past 11 months.
- Jan. 28 consignment auction in Paris, Mo.: 2021 John Deere 9620RX with 450 hours sold for $625,000. That’s the highest auction price on a modern tractor. 2022 Case IH 2160 36R-20 planter used on 3,600 acres sold for $366,000, which is the highest auction price on a planter.
- Jan. 28 farm auction in Lynchburg, Ohio: 2000 New Holland TV140 bi-directional tractor with 347 hours sold for $103,000. That shattered the 20-year-old price by $36,500. A 2019 John Deere 4052R tractor with 49 hours and loader sold for $50,000, which is a record price by $7,000.
- Jan. 28 consignment auction in Elk City, Okla.: 2022 Meridian 375 seed tender sold for $51,000 — a new record price for a seed tender. Seven of the eight highest prices on seed tenders were set in the past month.
People want to attribute the skyrocketing used equipment values solely to inflation, but that hasn’t been the engine driving prices higher. Nope. It’s been a supply issue. A lack of supply has consequences.
