October 20, 2011
Used John Deere 4960 Tractor at Auction
This 1993 John Deere 4960 tractor with 3,156 hours sold for $83,500 on a Septebmer 8, 2011 farm auction in south-central Minnesota. $83,500 is a new record high auction sale price Machinery Pete has seen in the U.S.
One new record high auction sale price is coffee shop talk. Two is a trend.
One of the “hottest” segments of the current used farm equipment market is the 200-plus horsepower used tractor market. A pair of new record high auction sale prices on John Deere tractors proves my point.
On a September 8, 2011 farm auction in south-central Minnesota near the Iowa state line, a 1993 model JD 4960 mechanical front-wheel drive tractor with 3,156 hours sold for $83,500. That is the highest auction sale price I’ve ever seen in the U.S. on a 4960.
11 days later, on a September 19, 2011 farm auction in north-central Illinois, a 1997 model John Deere 8400 mechanical front-wheel drive tractor with 709 hours sold for $104,000. Once again, a new record high auction sale price I’ve seen in the U.S.
Now consider “when” these two very nice used tractors sold: September. Over my 22 years of tracking the used farm equipment market and auction sale price data on all types of equipment, I’ve found the months August and September to be historically one of the “softest” times of year in terms of auction sale price value. Always made sense to me…farmers not done with harvest, still uncertainty as to yields. These factors lend themselves to a conservative approach, i.e. “softer” prices paid at auction.
Not in 2011.
The market for very nice condition used tractors remains incredibly strong, as evidenced by these two recent record auction prices. I’m looking for this trend to hold through the end of 2011 on into early 2012.
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.