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Machinery Pete: Year-end tax buyers

Agriculture.com Staff 12/11/2008 @ 2:02pm

Year-end tax buyers are driving the bus.

Huh, tax buyers? And what bus? The bus in this case is the used farm equipment market and tax buyers are those folks looking for last minute tax deductions for 2008. Tax buyers are bidding up the sale prices on good condition equipment sold at auction throughout the country, as well as keeping implement dealers hopping as the final weeks of 2008 melt away.

I've seen this same "tax buying" trend really become pronounced the last three years. It's like clockwork. Come mid November, about a week before Thanksgiving, auction sale prices begin to spike higher and they remain strong through December 31. Sale prices went through the roof in November-December 2007 as rapidly rising commodity prices added fuel to the tax buying crowd.

I wondered a bit what we'd see this time around. Yes, 2008 has been a good year for farm income, but we all know the wheels on the wider general U.S. economy have really been wobbling since October.

So far here late in 2008 the "tax buying" effect is still holding, as auction sale prices on good condition equipment continue to look very strong.

Below is a report on very recent auction sale prices I just emailed out to subscribers to our www.machinerypete.com Web site tonight (December 10). I like to send these e-mail updates to keep our folks up to snuff on the used market. Skim through the list and note the pieces of equipment I've highlighted. Click on those items to pull up additional auction sale price data going back a few years on those pieces of equipment.

While its fun and helpful to see sale prices in list form like this, the real power lies in being able to compare the sale price on a given piece of equipment to 5, 10, 20 or 30 other similar items. Kind of like looking at the big picture versus a quick peek.

Information is power.

Year-end tax buyers are driving the bus.

  • 1998 Ford-NH 8360 MFWD tractor with 1,178 hours: $42,500
  • 1989 Deutz-Allis 6250 MFWD tractor with 1,983 hours, Loader: $12,000
  • 1982 Deutz-Allis 6080 2WD tractor with 2,501 hours: $15,500
  • 1992 CaseIH 1640 combine with 1,422 hours: $31,000
  • Case IH 1063 6-row corn head: $8,500
  • Rhino 900 8' 3pt. blade: $850
  • Bush Hog 3008 rotary mower, 8': $2,000
  • Kilbros 350 gravity wagon, Kewanee heavy duty gear: $700
  • Yetter 3415 rotary hoe, 15': $700
  • Mayrath 42'x8" auger: $1,400
  • Krause 5250 no-till drill, 15': $7,000
  • NH 489 haybine, 9': $3,250
  • NH 853 round baler: $2,700

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