The auction price data I’ve been compiling now for nearly 34 years on all types of farm and construction equipment has always been meant to help you manage your equipment decisions to buy, sell, trade and appraise as best you can. It’s about knowing what an item is worth based on the most trusted, up-to-date data.
But the data as a whole also often points decision-making in certain trend line directions. The past two and a half years were a prime example. Our Machinery Pete data screamed one thing.
If you need it. Just get it
Availability has been the name of the game in the farm equipment sector since early 2021, especially on the used side. We’ve seen historically low levels of used inventory on dealer lots. When availability drives buying decisions, price flies out the window as a consideration. Just get it.
But when availability becomes more prevalent — pricing changes
The supply side is something our Machinery Pete team tracks and watches.
Recently, supply of used late-model large ag equipment has finally begun to rise from the historical and unprecedented lows we’ve seen. Our data began to show the changing trend the second week of December 2022 on 1-to-3-year-old combines. Supply was rising on dealer lots. Not coincidentally, hard cash auction pricing began to cool a bit at that exact same time on 1-to-3-year-old combines.
Sub trends within equipment sectors abound
While values have softened on 1-to-3-year-old combines, values have shot higher on 10-plus-year-old combines in good condition. Pre-DEF combines in good condition with lower hours have been the new hot spot in the market.
For example, a 2008 Case IH 2588 combine sold for $147,500 on July 13, which is the highest auction price in exactly eight years on a 2588 combine. See photo below.
Similarly the average auction price for John Deere 9770 STS combines (made by John Deere from 2007 to 2011) has now gone up three years in a row, from $74,341 to $85,110 so far in 2023.
This is the first time in my career I’ve seen 10-plus-year-old combines going up in value.
Things are ever changing
Sometimes assumptions prove to be accurate. Other times, they don’t.
The last tidbit I’ll leave you with is this: As we saw the supply of 1-to-3-year-old combines begin to shoot higher early last December, our Machinery Pete data began to show the supply of 175+ hp tractors finally beginning to go up in a noticeable way through June 2023. Auction pricing on high horsepower tractors has remained very strong into early July. When will the slide start? Will prices hold. Stay tuned.
