May 28, 2010
The used farm equipment market has been red hot up north.
I began to notice this trend last November. Remember how very, very wet it was through most of the U.S.? Harvest work just kept getting pushed back, and back, and back further. Around the end of the first week of November 2009 the first real nice farm auctions of the season appeared, two in particular in eastern North Dakota. The sale days came and I wondered….
Will these be the first farm auctions I’ve seen in 20 years to be postponed….due to GOOD weather?
Nope, the auction firm, Stefffes Auctioneers, went ahead with the sales and they went very well. Sale prices ran very strong across the board on all types of equipment. I talked with auctioneer Brad Olstad after the auctions. Brad mentioned the heavy phone & online bidding interest they got on the sales from up north in Canada.
By February and March of 2010, more hard proof had arrived of how super “hot” the used farm equipment was up in Canada. (3) items sold at auction prove my point especially well. First came the 1992 CaseIH 1660 combine with 1,259 engine hours sold 2/20/10 on a farm sale in southwest Ontario. This 1660 combine was in “like new” condition. It sold for $72,000 Canadian $$. Even with the slight monetary conversion, $72,000 was the off the charts highest auction sale price I’d run across on a 1660. In our www.machinerypete.com web site we have (258) sale prices on 1660 combines going back 14+ years. I had to go back to the calendar year 2001 to find one that reached $50,000 at auction.
Next came a farm auction in this same southwest Ontario region on 2/27/10. This time a JD 9550 combine with 523 engine hours, also in “excellent” condition. It was a one owner machine, a beauty. Sold for $152,000. Another record high sale price. Here’s a pic:
A week later, on a sale 3/5/10 in south-central Ontario, the topper: a 1997 JD 8400 MFWD tractor with 544 hours sold for $112,500 Canadian $$. Here’s a pic:
Definitely a premium being paid out there for the really nice used farm equipment when it becomes available for sale. Especially just north of the border.
About Machinery Pete: Greg “Machinery Pete” Peterson has been working in the agricultural industry for 21 years and details agricultural equipment prices and trends at his website, Machinerypete.com. Greg also writes columns for Successful Farming magazine, Implement & Tractor magazine, Agriculture.com web site and also appears on the Machinery Show on RFD-TV.