Casey Seymour and Machinery Pete say late-model, low-hour equipment values are stabilizing and even trending up as we get close to kicking off the used equipment auction busy season.
Pete says a few recent auction transactions display the value “firmness” bubbling up on like-new machines:
At a dealer auction in North Dakota this week, a 2023 New Holland T8.410 tractor (521 hours) went for $237,000. That’s a record-high auction price, according to MachineryPete.com historical data.
At the same North Dakota auction, a 2023 New Holland L334 skid steer with only 227 hours sold for $49,000. That’s another record-high auction price.
At a Steffes Auction Group sale in West Fargo, N.D., a 2023 John Deere 9RX 640 tractor sold for $477,278. The average auction price for that machine sits at $488,250. Taking into account low commodity prices, Pete says that’s not a bad price given the uncertainty in the farm economy.
“There’s different ways to see things,” Pete says. “That average auction price has remained flat, but if you look back two years the average auction price was about $597,000. So last year was the humongous drop down to $488,250, and then so far this year its kind of holding.”
Besides tracking used equipment values, Pete likes to look at land values and what he calls “the toy factor,” which are sales of vintage, unique show tractors that farmers love to collect.
Meanwhile, Seymour is anticipating a fall auction season with “big activity” as usual, but he thinks it will look a little different once we get into the thick of it.
“You’re going to see the same level of consignment dealership sale activity, but it’s going to be heavily mixed in with farm and retirement auctions,” he says.
Seymour and Peterson agree auction companies must continue to step their marketing and social media games up. There will be so many auctions taking place this fall that grabbing buyer attention will be absolutely critical for auctioneers.
“I guess that’s what keeps us on our toes, things don’t stay the same, they keep changing, even in our business,” Pete adds. “I mean, yeah, bring it on. That’s always been my — I try to keep that mindset despite being the gray-haired, grumpy old guy on the front porch.”
The Rest of the Episode
Aaron Fintel, used equipment specialist with 21st Century Equipment and founder of High Plains Wholesale, tells Seymour many farmers put off upgrading the combine for the last two years. Now it seems like everyone in his area is looking for a used combine.
“We’re getting to that point where guys haven’t done anything, and now they kind of have to,” Fintel says. “Combines are hot; combines $450K-plus are an absolute iceberg waiting for a big white boat to hit them. But $450K and under? You’re getting some action.”
He also is seeing more farmers buying based on model year over engine hours, which is a shift in buying behavior.
Shawn Hackett, president and CEO, Hackett Financial, gives an update on the price of corn, which is down in the sub-$4 range currently. He says we are in the middle of the third rainiest growing season over the past 50 years.
“You would think that we would get record yields and a record crop, and that’s what everyone is going with, but I wish it were that simple,” Hackett says. “It’s not that simple.”
And John Deere’s Bergen Nelson, go-to market manager – harvesting equipment, shared what he is seeing in the world of harvesting machinery and technology.
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