February 3, 2011
Call it instant appreciation.
I heard a remarkable story last week. I was on a fun trek of 6 speaking gigs in 6 days. Last Monday – Friday I was part of the Linder Farm Network’s “Ag Tour” of five Minnesota cities. Along with experts on Chinese agriculture and commodities analysts, I did my part by speaking about current trends in the used farm equipment market.
After my talk last Wednesday (Jan. 26th) in Marshall, MN a local farmer came up to visit. He said he and his father had recently purchased a new John Deere 8225R tractor from a regional Deere dealer. The tractor was delivered and sat in their machinery shed for a few weeks, still unused. The phone rings. It’s the dealer they just bought the 8225R tractor from.
The dealer offered to buy the 8225R back for more money than he just sold it to them for!
Very interesting times in the farm equipment market I guess you could say. That would be the biggest understatement ever. I’ve been documenting record high auction sale prices on all makes, sizes and age of used tractors like crazy since November 2010. Record prices falling right and left, all around North America.
But obviously the very strong buyer demand isn’t limited to the used tractor market, it’s just as intense with new tractor sales as well. Interesting times indeed.
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.