Get a bonus for premium iron
It pays to take care of your equipment.
Last year was full of examples of new record-high prices clocking in from every corner of the country on all different types of equipment. And the key factor was condition.
If an item was really nice, if the years of painstaking care were evident for all to see, then it didn't matter whether it was a tractor, a grain cart, an auger, an old farm truck, a disk, or a planter. It sold high.
That was true even on older combines. There was considerable chatter back in 2010 leading into 2011 about the growing issue of a buildup of inventory on late-model used combines on dealer lots all around the country. Given those circumstances, you'd figure older used combines with more age on them would have to fall in value, right?
Not if they were really nice. The nice ones went the other way: Up.
Check out the table for evidence. Listed are makes and models of harvesters. The one constant they all share is that each combine was in good to excellent condition. Those prices certainly aren't consistent. Notice some pretty eye-popping figures.
Payoff for being picky
Start with the first combine listed, the 1985 Gleaner L3 with 2,510 hours that sold for $28,000. That is the highest auction price on an L3 I've seen in 15 years. One week earlier, the same auctioneer who sold the L3, Aaron Siefker of Ottawa, Ohio, sold the 1990 Case IH 1640 combine with 2,727 hours listed in the table for $40,000. That's the highest price I've seen on a 1640 in 10 years.
On February 20, 2011, in east-central Nebraska, a 1997 Gleaner R62 with 1,758 engine hours sold for $95,500. That was a new record for an R62. Stock Auction Company did the honors. One look at this combine, and you knew the owners were particular about their equipment.
A week before that auction, owners Harry and Sharon Schmit sat at their kitchen table and talked about their equipment. No fancy or boastful talk, just Harry's lifetime commitment to caring for his equipment. Everything at his sale sold high.
Things really ratcheted up late last year as buyers scrambled to acquire good used equipment prior to the changes coming in 2012 to the IRS Tax Code Section 179 affecting immediate write-off limits.
On a December 3 sale in north-central Indiana, a 1998 John Deere 9510 combine with 1,885 engine hours sold for $91,000. That final bid is the highest auction price I've seen in 10 years on a 9510.
Combine stole the show
At a December estate auction by Sullivan Auctioneers, four record-high auction prices were set on Deere 9500 tractors in excellent condition.
The funny thing was, folks weren't talking about those tractors at the auction. They were talking about a 1992 Deere 9500 combine that sold for $71,000. That is the highest price I've seen on a 9500 in over 11 years.