Record price on Gleaner R62 combine
Still a very real hunger out there for good used equipment.
The proof bumps into me every where I turn. Got an email Tuesday from Todd Houghton of Houghton Auction Service in Red Wing, Minnesota. Todd had a very nice farm auction last Saturday (August 29, 2009) in southeast Minnesota.
The price on the 1988 JD 6620 II combine caught my eye. A sale price of $36,000 is pretty good money for a 21-year-old machine. And $20,750 for the 1971 JD 4020 tractor - one owner, nice. Nothing to sneeze at either.
"There was a huge crowd," said Houghton. "We had 500 numbers out and it looked like the 500 numbers brought one or two friends with them. Bidders from MN, WI, IA, NE, OH, SD, ND, NY, and Canada in attendance. A combine sold to a guy who came in from New York. A 4020 went to Noth Dakota with the runner up bidder coming from Ohio. We also had phone bidders from Nebraska, Iowa, and Canada.
"There is still a great demand for good, clean machinery on these farm auctions."
Todd is right. The demand for the good stuff is still sky high. I found more proof at the farm retirement auction I covered and filmed yesterday (September 2, 2009) in central Iowa. What drew me to the sale was the 2001 Gleaner R62 combine with only 1,210 engine hours. What would that thing sell for?
Later today (September 3, 2009) I'll post video of the Gleaner R62 and other items (Case IH 7220 tractor and a Parker 710 grain cart) selling on the auction. I will also post auction sale price data I've compiled on these items so you can see how the Iowa auction prices from yesterday compare. You'll see that $87,000 was a high sale price. Make that very, very high. Check here on Agriculture.com's AGOL-TV section for this video or at www.machinerypete.com.
While standing at the auction yesterday, another auctioneer, Keith Sash, came up and relayed information about a farm auction he held last Saturday, also in central Iowa. More of the same, very strong sale prices, including:
1990 JD 4555 2WD tractor with 2,450 hours: $49,000
1980 JD 4640 tractor with 5,240 hours: $25,000
1956 JD 720 tractor, gas, power steering: $6,450
1950 JD A tractor, rollamatic front: $4,900
One more thing I'd point out about this region of east-central Iowa producing these strong auction sale prices. As I was driving through the area it was apparent the corn wasn't exactly looking the best. Not as mature as you'd hope. It's been awfully cool this summer. Even so, the persisting hunger for really good quality used farm equipment continues to produce high auction sale prices.