Demand and price of used farm equipment rising as producers seek more affordable options

The value of older, used equipment ranging from combines to skid steers and everything in between, has been rising for 18 months.
Updated: Sep. 18, 2020 at 7:08 PM CDT
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MANKATO, Minn. (KEYC) - The price of used farm equipment has been on the rise for more than a year and it’s in high demand.

That’s in part due to the rising price of new equipment and used equipment is becoming cheaper and easier to repair, plus, used equipment gives farmers more operational control.

“Like I say, if it’s in good condition with low hours and a little bit of age, you’re kind of sitting on gold for farm equipment now,” said Greg Peterson, founder of Machinery Pete.

The value of older, used equipment ranging from combines to skid steers and everything in between, has been rising for 18 months.

“The one thing is the cost of new, so 30 years I’ve been tracking auction prices, that’s always been a factor. Once a piece of equipment, tractor, combine in particular, gets to be around that 10-year-old market, if it’s in good shape with low hours, it becomes more attractive because the cost of new keeps going up 4% every year,” said Peterson.

And now the Tier 4 engines are playing their part in the increased demand of used equipment.

“Which came in 2011, 2012, so if you get out before that period, you know, little simpler machine, little easier to fix yourself, and that is really what people are wanting these days,” said Peterson.

The demand of used equipment is also adding to the Right to Repair movement, taking aim at global equipment manufacturers as some producers look to save themselves a trip to a dealership and fix it themselves.

“And we certainly appreciate what the modern tractors and combines do for us from a data perspective and we need that data to be more efficient and get higher yields, but at the same time, when an issue pops up and you can’t work on it yourself, you’re going against maybe decades or a lifetime of history,” said Peterson.

Some are adding modern technology to older equipment.

“Because there again, that’s a good example of people appreciating the new technology in their favorite tractor model from the ’80s or ’90s and ‘oh, if I could put GPS on that thing’, so we are seeing that trend actually pick up quite a bit,” said Peterson.

For more information on the used equipment markets, a direct link to Machinery Pete’s website can be found here.

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