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Machinery Pete: Gehl drops ag line; Will used values fall?

Agriculture.com Staff 04/06/2006 @ 10:26am

Okay, now what?

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Did you hear the announcement coming out of Wisconsin this week from Gehl, saying they will discontinue manufacturing their agricultural line of equipment? Sure they’ll still crank out the skid steers, track loaders, telescopic handlers and other equipment that falls into their compact equipment category.

But no more new balers, disc mowers, forage choppers, forage boxes, etc.

I think I'm probably like a lot of farmers and dealers who own and sell Gehl agricultural equipment. I'm wondering if their equipment suddenly just lost value with this announcement. In their press release Monday announcing the discontinuation, Gehl promised support to their dealer network and customers through on-going parts and service support for the agricultural line of equipment.

But bottom line, is the 2002 model Gehl 1285 forage chopper in excellent condition with a three-row corn head, nine foot hayhead, metal stop and kernel processor still worth the $35,000 a buyer paid back on February 4, 2006 on a farm auction in south-central New York state?

Is it worth less now? If so, how much less? What will it be worth two, four, six, or even ten years from now? Or what about the 2003 model Gehl 2880 round baler (in good condition) that sold for $9,000 at a farm auction in northeast Nebraska back in mid-December. Would it sell for that much next week?

Time will tell the tale.

Think I'll draw a mental line in the sand in regard to the auction sale price data my company compiles. The line, in this case, will be the first week of April 2006. Sure will be interesting to watch and see how various Gehl implements sell on upcoming auctions.

It's not a lock values for used Gehl ag equipment will fall, not by any means. After all, the used equipment market has been red hot over the past 12 to 18 months. Could Gehl pulling the plug on its ag line of equipment put an ever greater premium on finding and acquiring high quality used equipment? Possibly.

The proof will be in the pudding so to speak. We'll be there to watch and see what Gehl used equipment sells for at auction.

Check out our auction sale price data on Gehl haybines and discbines/mowers.

Okay, now what?

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