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Used baler values falling

GREG PETERSON 05/25/2011 @ 3:54pm 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

512 pieces of equipment up for sale today (May 25th) on www.Bigiron.com's online auction. (6) of the first 85 items sold were round balers. Here's the scoop:

2003 NH BR780, baler in WY, done 5,000 bales: $7,001
JD 567, baler in NE, twine only, done 26,600 bales: $7,500
JD 567, baler in NE, twine only, done 13,500 bales: $10,452
2006 JD 567, baler in KS, done 9,847 bales, 1 owner: $15,002
2008 JD 568, baler in NE: $18,501
2008 JD 568, baler in NE: $22,500

Values on used round balers have fallen from a few years back. More available for sale, less buyer demand = softer used values. Take NH BR780's. Here's the breakdown from our "Calculator" pricing tool at www.Machinerypete.com:

NH BR780 Round Balers: Auction Values

Avg. auction price 2011: $7,761
Avg. auction price 2010: $9,153
Avg. auction price 2009: $10,744
Avg. auction price 2008: $14,350

So a 45.9% drop in value vs. three years ago. Pretty steep drop. Now compare those "hard cash" average auction sale price figures from the past three years to retail price values on NH BR780 round balers:

NH BR780 Round Balers: Dealer Prices

Avg. dealer advertised price 2011: $18,537
Avg. dealer advertised price 2010: $17,815
Avg. dealer advertised price 2009: $17,143
Avg. dealer advertised price 2008: $18,363

See the disconnect? Three years ago in 2008 NH BR780's sold at auction for 78.1% of the average dealer advertised price. So far this year? That ratio has dropped all the way down to 41.9%. Probably explains why I've been hearing things like a large dealer in eastern Iowa who a few months back just plain quit taking in round balers on trade.

Going beyond average prices, have a look for yourself at what NH BR780's sold for two or three years ago at auction vs. the (8) I've seen sold so far this year:

Pete's auction sale prices on NH BR780 round balers

Here's a YouTtube video with highlights of a chilly, windy, rainy farm estate auction I shot last Thursday (May 19th) in south-central Nebraska that featured (2) 2007 model JD 568 round balers: