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Tax iron buyers spending big

GREG PETERSON 12/14/2011 @ 9:12am Greg Peterson writes "Machinery Pete" column for Successful Farming magazine and appears on the Machinery Show on RFD-TV, talking about trends in the used equipment market

The clock is ticking.

Literally, it’s ticking. On the www.Section179.org web site you can see a clock ticking down the time until Midnight on December 31, 2011. As I write this, you’ve got 17 days, 7 hours, 17 minutes and 11 seconds left before times runs out. Before time runs out on what you ask?

It's your last chance to buy farm equipment, new or used, and have it count as a 100% write off on your 2011 taxes.

Folks ask me often about the best time of year to buy equipment. I can tell you right now, without a doubt, the best time of year to sell: November & December. Over the last couple years when I give farm talks, I’ve mentioned in semi jest it seems the auctions I cover in November & December it’s as if everyone at the sale is walking around with (3) letters on their forehead:


Well, late in 2011 those (3) letters on the collective foreheads have turned to brightly flashing neon T-A-X. If www.Machinerypete.com were a pinball machine I’d be going deaf from all the bells and whistles ringing as so very many new record high auction sale prices have chimed in on all types of equipment, from all over the country the last 3-4 weeks.

Even on late model combines.

Yes, I know, throughout much of the past 15-18 months I have written and blogged time and again about how a buildup of inventory of 1, 2 and 3 year old used combines on implement dealer lots had caused values on late-model used combines to sag. Well guess what? They aren’t sagging here late in 2011. At least not on farm retirement or farm estate auctions around the country.

Case in point: a very nice farm auction Monday, December 12, 2011, in northeast Missouri. On this sale was a 2009 JD 9770 STS 4WD combine in very good condition with 771 engine/410 seperator hours. What did it sell for? A new record high auction sale price:

$250,000. Click on the link below to view auction sale prices I’ve compiled on JD 9770’s the last few years.

Nope, no heads with that combine, that’s a cool quarter million just for the box, a two year old box. This sale was by my good friends at Sullivan Auctioneers. Just a week earlier I drove to Independence, IA to shoot video at another sale (farm estate auction) by Sullivan Auctioneers. On that Dec. 6th sale a 1992 JD 9500 combine with 10 Series updates and 1,391 engine hours sold for $71,000…the highest auction price I’ve seen on a JD 9500 combine in over 10 years. That auction also featured (4) extremely low hour John Deere tractors. Guess how they sold.

4 new record high sale prices. See for yourself, here’s the Youtube video I posted from that auction:

What’s in store for used farm equipment values the rest of December? The clock is ticking, down to 17 days, 16 hours, 47 minutes, 16 seconds …tick, tock, tick, tock.

Don’t forget your checkbook.

www.Machinerypete.com (1-yr. subscription $69.95; 1-week $10):

  • "Auction results" 290,198 sale price on ALL types of equipment. Updated daily
  • "Upcoming auctions" free searchable list of equipment on upcoming sales
  • "Dealer equip." free searchable list of equipment for sale by dealers
  • "Who Makes it?" searchable database of farm equipment Mfg's
  • "Classifieds" free place to list your used equipment for sale
  • Machinery Pete blog...see what Pete's yakking about
  • Machinery Pete's 2010 Auction Price Guide: $19.95, call 800-381-0423
  • Pete's new Facebook page
  • See the latest Agriculture.com columns from Pete

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