Surprising combine prices
$40,000 for a 1982 IHC 1460? $100,500 for a 1997 Case IH 2188?
Definitely a couple of eye opening auction sale prices on combines from farm sales held last Saturday (April 4, 2009). The 1982 IHC 1460 combine for $40,000 sold on a sale in north-central Oklahoma. It had 4,242 hours on it and sold with a 24-foot rigid head. The 1997 Case IH 2188 combine for $100,500 sold in south-central Kansas. It had 1,458 engine hours and rear-wheel assist.
A bit of context. $40,000 is the highest auction sale price I've seen on an IHC 1460 combine since September 1996 and that 1460, sold for $44,500, only had 380 hours on it. The Case IH 2188 for $100,500? The highest auction price I've seen since November 1998 ($105,500 for a one-year old 1997 model with 488 hours).
Click on the links below to view the auction sale price data I've compiled on 1460 & 2188 combines.
I think what we're seeing currently in the used equipment market, and these two combines are perfect examples, is the increased premium buyers are willing to pay for very good condition used items purchased from known and trusted sources.
Known and trusted?
By that I mean traditional farm retirement or estate auctions. Local buyers know the farmer who is retiring or passed away and have a good feel for how he cared for his equipment. I'm not just going on gut instinct when I say that sale prices from this type of auction have been on the rise here lately.
A few recent examples for you.
1992 JD 8960 4WD tractor with 2,853 hours, sold 3/7/09 in west-central Michigan for $81,500
1991 JD 4455 MFWD tractor with 5,456 hours, sold 3/3/09 in east-central North Dakota for $69,000
1994 JD 7800 MFWD tractor with 2,200 hours, sold 2/23/09 in east-central Oregon for $80,000
1997 JD 8400 MFWD tractor with 3,525 hours, sold 4/4/09 in north-central Iowa for $91,000
Case IH 496 25-foot disk, sold 4/4/09 in north-central Iowa for $12,000
2004 Chevy 2500 pickup with 40,000 miles, sold 4/4/09 in southeast Kansas for $20,750
All of these items sold on farm auctions featuring very nice, well-cared-for equipment. Meanwhile, auction sale prices on recent large consignment auctions and dealer inventory reduction auctions have been much spottier, some strong prices, but more and more softer sale prices.
Other significant factors at play in this used equipment market include:
The number of farm auctions has been historically low.
The price of new equipment continues to rise.
Time delays on new equipment purchases.
Folks who marketed high price corn, still have some $$ to spend.
Regarding the first point listed, on the historically low number of farm auctions during the last 6 to 12 months, I had an auctioneer contact from Indiana bounce the following quote off me this week, "Pete, farm auctions around here are almost a thing of the past."
So when really nice farm auctions do pop up these days, there are lots of buyers willing to pay top dollar for the really nice condition used stuff.