Latest News From Machinery Pete

An International Harvester 856 diesel tractor, a Peterbilt 389 Glider kit day cab semi and a collection of John Deere 55 series tractors are just a few pieces of equipment that have caught Machinery Pete's eye lately.

This week Machinery Pete – Greg Peterson – takes a deep dive into used equipment auction data and what it might mean to the dealer network, and an auction up North nearly sets a price record on a two-decade old tractor.

Greg Peterson – Machinery Pete – talks his weekly Pete's Pick of the Week and other used equipment market news during his weekly AgriTalk appearance with host Chip Flory.

A recent farm equipment auction in Iowa set a new highwater mark for used John Deere 55 Series tractors.

Machinery Pete predicts descriptions of used equipment won't be enough to create buyer trust in the near future.

When comparing 2023 to 2022, the average auction price for a John Deere S780 combine dropped $54,977, or 15.8%. How low will that number go?

For example, at Lawrence Crom’s retirement auction, his like-new 2021 Case IH Maxxum 150 tractor sold for $133,000, plus a $1,250 online buyer fee. That’s a new record-high auction price on that model.

Machinery Pete shares a unique combine recently listed for sale and what it means for your farm’s equipment plan going forward.

Times are different, which means trying to predict how used farm equipment values will behave coming out of a strong up cycle into a slower, tighter period in the ag economy is dangerous.

The price of new machinery pulls up on the price of used equipment - but this effect is quickening.

Three recent farm auctions in Kentucky, Missouri and Iowa provide perfect examples of how supply is rising yet prices are still strong for used tractors, particularly pre-DEF, pre-Tier IV models in good condition.

Supply is rising while demand is falling. This points to better used planter buying opportunities late this year and into 2024.

The top five trends Machinery Pete predicts for 2024.

Despite increased inventory on dealer lots, auction prices have remained high on good condition loader tractors in the 150-hp range through the big four-wheel-drive and large track units.

Timing is everything. Machinery Pete's recommendation for when to host an equipment auction is quickly approaching.

A special John Deere 830 tops an equally impressive online auction of more than 25 antique tractors and a few miscellaneous pieces of equipment.

As it stands right now, it looks like 2022 will be the high-water mark for used construction equipment values.

A Bobcat Toolcat, a Polaris Ranger and a John Deere Gator have all topped $30,000 at auction.

In 2000, the highest auction price paid for any tillage tool that year was $28,500. Today, that number tops $140,000 and easily ranges from $80,000 to $120,000.

Thirty combines recently sold on an online dealer auction, and this John Deere S780 with 374 engine hours topped the sale.

Auction prices on good used self-propelled sprayers have shot skyward the past two years. In fact, the 11 highest auction prices ever on sprayers have all occurred in the past 28 months.

When availability becomes more prevalent — pricing changes

While the drought of 2023 is straining crop conditions, there hasn’t been any drought concerns when it comes to auction prices on used farm equipment, including most types of harvest equipment.

A 28-year-old, low-hour tractor draws attention during online retirement auction.

Located in Ohio, this Farmall C was restored by the original owner.

This 2002 John Deere 8420 sold on a May 4 farm auction in DePere, WI.

After seeing 25,000 sales of used disks come and go, Machinery Pete showcases three, each one from a different manufacturer, that have captured the highest prices farmers have ever paid for a tillage tool – so far. 

Having tracked machinery values for three and a half decades, Greg Peterson, aka Machinery Pete, knows there are a lot of moving parts to watch. 

Auction prices have been amazing in the last year — especially in the last six months. Check out the equipment category record-high auction prices just since November 2022.

This 1986 Steiger Cougar 1000 with 2931 actual hours sold for record price of $50,000 on 2/25/23 consignment auction in Columbia City, IN by Schrader Real Estate and Auction.

People want to attribute the skyrocketing used equipment values solely to inflation, but that hasn’t been the engine driving prices higher. Nope. Here's the real issue.

Strong used equipment values have been a theme for the past 18 to 20 months, and Machinery Pete doesn’t see that story changing anytime soon. During National Farm Machinery Show he revealed why those prices could last.

The seller was from Washington. The tractor sold for asking price ($140K) in a day.

Used four-wheel-drive tractor values and auction pricing have been on fire the past 18 to 20 months. Premiums are being paid for slightly older pre-DEF, pre-Tier IV four-wheel-drive models in nice condition.

Can you buy a new planter now? Nope. And you can’t find many used models on dealer lots either. So, when the right used planter like this Kinze 4705 shows up at auction, we see tears of joy for the seller. 

If you follow my reporting, you know predictions don’t tend to be in my stoic Norwegian data guy DNA. But New Year’s resolutions are about pushing our personal boundaries. I’m game, so here it goes.

The data I compile and analyze is so striking and consistent that 15 years ago I named it The Limbo Line. The line being the 10-year-old mark. 

Check out this pair of tractors that sold on Dec. 3 in Missouri.

While sectors such as housing and automobiles have seen a drop in demand, we’ve not seen the same in the farm equipment market (new or used).

It’s time to play offense and defense. The new reality of the farm equipment landscape means you can no longer take a lackadaisical approach to purchasing new or used equipment. 

Persistent supply chain and logistical challenges have throttled the machinery industry despite elevated demand across all major markets. 

In the past year, 85 grain trailers have sold for more than $40,000 at auction. In 2018, only six sold that high. Why would buyers pay such high prices? They want machinery — now.

This 2010 John Deere 9330 4WD with only 415 hours sold on Sept. 5 at a consignment auction in Dexter, MN

I’ve seen the same trend for the past 10 months with used mid- to high-horsepower tractors, combines and planters. Now, the trend is in self-propelled sprayers.

This porcelain neon milk glass hood sign sold for $108,000 on Aug. 26 Dave Anton collector auction in Greenville, SC.

This 1997 Case IH 8930 sold for the third highest auction price to-date.

The sheer volume of high-to-record auction prices for used equipment in good condition has been nothing short of amazing.

A pair of good used tillage items sold hot on a July 21, 2022 online farm auction in Delta, IA. 

Used combine values continue to remain in Machinery Pete’s “red hot” category this summer.

The July Machinery Pete Online Auction has 88 items up for sale—and ranging from incredibly unique tractors to in-demand sets of tires—here’s a highlight of what’s up for bid.