Are used equipment values ready to rocket higher?
This is going to be interesting.
Rapidly rising commodity prices, what effect will they have? On what? On everything. From my little corner of the world, I'll be analyzing how the used farm equipment market responds.
I've been compiling auction sale price data for 17 years now. Late '06 and early '07 promises to be one of the most intriguing periods I will ever see for used equipment values.
Generally speaking, used equipment values across the board (late model equipment, older equipment, tractors, combines, tillage, grain handling equipment, you name it) have been up fairly significantly since summer 2004. More tightly controlled production of new equipment along with ever rising costs for new machinery has worked in conjunction with fewer number of farm auctions to create a high level of pent up demand for quality used equipment.
Now factor in skyrocketing commodity prices.
And oh yeah, don't forget this little nugget. Over my 17 years of compiling auction sale price data, the time period from mid-November through mid-February has consistently produced the strongest auction sale prices.
Like I said, this is going be interesting.
To me, it sort of feels like we're standing at the starting line right now. Harvest is winding up. . . time to take off your sweats. Auction bills are beginning to appear for the coming weeks. . . time to lace up your shoes. The gun is about to go off, the race about to begin. Runners take your mark, get set, GO!
But then again, maybe I'm full of beans and used equipment values will simply "hang in there" over the next few months. We'll see, I mean literally, we'll see what this used market has in store as sale prices roll in from around the country.
One upcoming sale in particular I have my eye on is a farm auction in Glenwood, Minnesota, on December 1st. It may be years before you run across a farm sale featuring more late model equipment than this auction. Check out the full listing at www.zielsdorfauctions.com.
Here are a few items up for sale.
2006 JD 9620T track tractor, 250 hours
2006 JD 9420T track tractor, 560 hours
2005 JD 7920 MFWD tractor, 250 hours
2005 JD 7420 MFWD tractor, 315 hours
2005 JD 8420 MFWD tractor, 175 hours
2006 JD 9760 STS combine, 225 engine hours
2006 JD 630 hydro flex head
2004 Geringhoff 12/22 corn head
(2) 2004 JD 1710 24R-22 planters
2006 JD 946 Mo-Co discbine
(3) 1999 Kenworth T600 trucks
(3) Timpte 42' grain trailers (2004, 2002, 2000)
2002 CaseIH SPX 4260 Patriot sprayer, 835 hours