With sales of new farm equipment continuing to be slow, the demand for and the price of used equipment remains very strong. Facing another year of tight farm profits, many are turning to the used equipment market. But with that increased demand comes higher prices. Greg Peterson, better known as Machinery Pete, says, “Since the end of 2017, good condition used equipment, no matter what it is, has been holding its value.” That is especially true if it is 10 years old or older. So, for a good value, he recommends used equipment that is 5-7 years old, “There is a log of supply of this equipment and prices have been a bit soft, compared to 1-3 year old equipment and anything over 10 years old, that is where the heat is right now.” Peterson is at a bit of a loss to explain why, but his over 30 years of data shows that once a piece of equipment hits 10 years of age, the demand really heats up.
Peterson says the interest in planters is extremely high right now, “It is hard to even get a good guess on price right now, because, if the specs are right when it hits the auction, the demand is very strong.” He added anything that is retrofitted is also selling well. He sees more and more new and used machinery being bought and sold on-line, “I see a trend of more and more sales being made on-line rather than in person auctions.” He said farmers today are also willing to travel long distances to buy equipment.
One trend that is not changing: after 30 years, Machinery Pete remains as popular as ever.