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Is a strong Canadian dollar driving buyers south?

Agriculture.com Staff 06/14/2007 @ 10:30am

Something is going on up to our north.

I've noticed an uptick in the number of new subscribers to our Web site from Canada. Makes sense. I read last week the Canadian dollar was up to $0.9446 (against U.S. dollar). Five months ago it was at $0.85. Five years ago in 2002 it was at $0.62.

I live in Minnesota so we're neighbors to our friends up north. Big story in the Minneapolis Star-Tribune last week commented on the growing flow of Canadian shoppers coming south to take advantage of increased buying power. Makes perfect sense. So the Mall of America in the twin cities has more Canadian visitors these days.

I think the same will apply to the used farm equipment market. If you can come south and get more for your $$, whether that's buying new shoes at the Mall of America or a used combine at auction, that's just what you do. Five years ago things were reversed, with a weak Canadian dollar, lots of northern U.S. farmers, brokers & dealers crossed the border to the north to find good buys.

Just today (June 13th) I was talking with Matt Gehling of Gehling Auction in Preston, Minnesota (southeast MN). We were chatting about trends in the used equipment market so far in 2007. Matt mentioned how a higher percentage of equipment on their auctions is now being sold to online bidders, particularly to Canadian bidders.

Check out how auction sale prices throughout the U.S. compare to sale prices up north by clicking on the links below.

Click here to download a PDF with expanded auction price data on CaseIH 7140 tractors.

Click here to download a PDF with expanded auction price data on Westfield 51-foot augers.

Something is going on up to our north.

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