Since the fall of 2020, record after record has been set, and these high prices continue to soar through mid-2022. The sheer volume of record auction prices for used equipment in good condition has been nothing short of amazing.
LET’S TALK TRACTORS
An interesting segment is that of medium to high horsepower tractors. An example is John Deere Model 8235R. Check out these eye-opening facts about the 8235R:
- The five highest auction prices were all set within the last 16 months.
- The average auction price, $147,441, is up 54% from three years ago ($95,518).
- The average auction price is the highest in nine years.
The 8235R is not an isolated example. Three of the four highest auction prices ever for Case IH Magnum 290 tractors have occurred in the past eight months.
Of course, high farm income has pushed used values higher, but a bigger factor has been the historic tightening of dealer used lots. Only 23 John Deere 8235Rs were on sale nationwide as of mid-July.
This tension in the used tractor market has spawned a pair of interesting trends:
- Since last November, dealers have entered the auction market as aggressive buyers.
- Since the end of 2021, farmers have started buying good used tractors as a hedge.
Since last fall, the risky availability of parts has spooked people. The supply chain is still in shambles and possibly even getting worse, so equipment prices continue to rise.
These factors, along with your local dealers not having backup machines in case you break down, worked together to foster extremely aggressive bidding.