Last April, I wrote early 2021 was the hottest equipment market I’ve ever seen.
Not one given to making bold predictions, I nonetheless offered up this strong advisory statement: If you need that piece of farm equipment, new or used, buy it. Now. Don’t wait. Prices are going up.
They sure did. Buying sparks were flying from every direction down the stretch of 2021. Here are but a few examples:
- Four of the seven highest auction prices ever on John Deere 8330 tractors (made 2006 to 2009) were from May 2021 to December 2021. That included a 2008 model with 945 hours that sold for $194,000 on Dec. 7 at a farm sale in Calmar, Iowa.
- A 2014 J&M 375ST seed tender sold for $32,500 at a Dec. 22, 2021, online auction in Riverton, Ill. Owner Patrick Lamkey paid $25,000 for it new in 2014. That was the third-highest auction price ever on that model, but also the third-highest in just December 2021. A Dec. 2 auction in Kimball, Minn., saw that model sell for $35,500, and a Dec. 16 auction in Bradford, Tenn., saw that model bring $35,000.
- Four of the highest auction prices on self-propelled sprayers came in 2021, with the top three prices hitting Dec. 8–29. The top was $387,000 for a 2021 John Deere R4038 with 149 hours on Dec. 8 during an online farm auction in Malcom, Iowa.
- Three of the seven highest prices on Case IH Magnum 275 tractors came Dec. 10–17, 2021. The top was $157,000 for a 2011 model with 1,525 hours.
- The second half of 2021 saw five grain trailers sell for more than $50,000 and 25 sell for $40,000 to $49,999.
- The highest auction price ever on a tractor, combine and planter were all at the same sale. On Dec. 9, 2021, an online farm auction in Charleston, Ill., saw these prices: $538,000 for a 2019 John Deere 9620RX; $476,000 for a 2021 John Deere S780; and $346,000 for a 2021 John Deere 1775NT CCS 24R-30.
Now the question is: “Machinery Pete, these prices can’t last, can they? Prices and values have to fall, right?”
I understand why folks are thinking this, but I have yet to see a magical end to the rising prices. Why not?
- Continuing supply chain issues are crimping new equipment sales.
- Historic tightness on farm equipment dealer used lots across North America. I’ve never seen anything close to this in my 32-plus years
In early January on “AgriTalk,” I interviewed Mike Hedge, president and CEO of Birkey’s Farm Store, which is a 17-location Case IH dealer in Illinois and Indiana.
“In my 30 years I’ve never seen anything like it,” shared Hedge in regard to the lack of new equipment to sell. “We’ve ordered everything we can, everything available, and much of it is presold.”
So, when the calendar flipped to 2022, what did I see? Prices are still rising. Keep your seat belts buckled.
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