When the ag markets are good, farmers tend to spend a little more on upgrades to the operation. Maybe it is grain handling equipment, a new shop, or maybe it is a new implement. However, with the slowdowns in production, shipping, and other areas of the supply chain, the used equipment market is really seeing a lot of movement.
Mark Stock is a co-founder of BigIron Auctions. He says the market is seeing premium prices for used equipment that is in good condition, with low hours.
Stock says that it is a perfect time to be selling your machinery. With the market being what it is, some farmers are almost getting their purchase prices back on some of their used equipment.
Stock used the example of a John Deere 4440 tractor. Twenty years ago, the tractor, in good condition, would bring about $20 – $25K. Now, two decades later, that same tractor in good condition can fetch an average of $20 – $25K, and even higher. Stock adds that it is tractors in every color that are moving like that.
Stock says that there is also a very competitive market of banks looking to finance used equipment sales. Farmers have their pick of terms that work for them.
So, what equipment is in highest demand? Stock says that planters and grain carts are leading the way.
Stock wrapped up by saying that there are a few Iowa machinery and land auctions coming soon. You can log on to their website and take a look at what is on the schedule.
You can catch our full discussion about auctions, financing, and tax strategies for selling during this week?s edition of Weekend Ag Matters. You can have the program delivered right to your mobile device through any of our podcasting distributors:
