Crazy Canadian auction prices
The conversion rate is pretty close.
Between the Canadian dollar and ours here in the U.S. Last Thursday (April 14th) it was around 1.0383. Yesterday (April 19th) up to around 1.04. So if you buy a piece of equipment on a Canadian farm auction for $20,000, you're talking roughly $20,800 U.S. dollars.
What else is pretty close these days between the U.S. and Canada? We both have red hot used equipment markets. If you've been following my breadcrumb trail here on Agriculture.com or in Successful Farming or own my own web site blog or Facebook page since last November, you know my take on used equipment values.
Up, up and away.
Well folks, as strong as auction sale prices have been here in the U.S., guess what? They're even hotter up north of the border in Canada. Don't believe me? I'd suggest you make sure you're sitting down before you read further. I'm serious, are you sitting down? No sharp objects nearby in case you fall out of that chair? Ok, feel free to read on.
Auction Price Report: April 14, 2011, farm sale, Kamsack, SK (east-central SK)
- 1998 JD 9400 4WD tractor with 2,089 hours, 1 owner, shedded: $142,500
- 1994 JD 8870 4WD tractor with 1,933 hours, 1 owner, shedded: $90,000
- 1999 JD 9610 combine with 914 head, 1,176 engine hours: $125,000
- JD 610 41' chisel plow, 1 owner: $26,000
- JD 1650 51' chisel plow, 1 owner: $36,000
Those two four-wheel drive JD tractors? Both the highest auction sale prices I've seen on each model since 1998. 13 years is a long time. The JD 610 chisel plow sold for $26,000 ($26,997 U.S.)? That's a mile past the prior high auction sale price I'd ever seen on a 610 ($17,000 back in 2008). And that JD 1650 chisel plow sold for $36,000?
The previous high auction price I'd compiled on a JD 1650 was $20,000, all the way back in 1999. So we're tiptoeing into some uncharted waters here I think. How to accurate value any used farm equipment given these amazing surges in prices being paid? I think the best you can hope to do is stay plugged in.
Now you may have noticed the descriptions "1 owner" and "shedded" I inserted for a few items on this farm auction last Thursday in east-central Saskatchewan. Very key points. It's the same thing I've been seeing here across the U.S. since last July, a growing premium on the very nicest condition used equipment as it comes available on the auction market. The point was born out by another Saskatchewan farm auction last Saturday, April 16th, this one near Craven, SK, a sale by Kramer Auction, LTD.
Are you still safely seated? Just checking. Read on.
Auction Price Report: April 16, 2011, farm sale, Craven, SK (south-central SK)