April 11, 2011
“So Pete, have used tractor values been rising?”
I’ve been asked this question a lot lately. My answer: yes, they have been rising and they are continuing to rise as we move into Spring 2011. Another eye opening example came on a nice farm auction Friday, April 7, 2011 in Mt. Sterling, IA (southeast IA). A beautiful 2002 John Deere 7410 2WD tractor with only 618 hours sold on this auction.
It went for $61,000.
How high is that? The highest auction sale price I’ve ever seen on a 2WD John Deere 7410 and I’ve documented nearly 100 of them sold over the last 15 years in our Machinerypete.com web site. But I don’t think simply saying this was a new record high auction price tells the whole story here. We need context. So let’s compare that $61,000 sale price to what a similarly nice Deere 7410 2WD tractor sold for back on November 6, 2004, on a farm auction in north-central Kansas.
That 7410 was a 2001 model with only 521 hours in “like new” condition. What did it sell for? $47,000.
Chew on that for a second. Back in 2004 a 3-year old super nice 2WD 7410 tractor sells for $47,000 and on the April 7th auction in Mt. Sterling, IA a 9-year old 2WD 7410 with similar hours, in similar condition, sold for $61,000.
Bottom line: good used Deere tractors just keep rising in value.
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.