The used farm equipment market has been…ON FIRE…here all through 2021. Of course you know this if you’ve been following my daily breadcrumb trail of reporting.
The flames are about to go HIGHER.
Dual news today will definitely add fuel to the roaring used equipment fire with 10,000+ Deere employees from 14 U.S. facilities walking out on strike today, the company’s first strike since 1986 and CNH Industrial announcing it will temporarily shut several of its European agricultural, commercial vehicle and powertrain manufacturing facilities due to supply chain issues. Here are links to the 2 news stories:
John Deere strike: Deere workers go on strike after UAW fails to reach deal | Reuters
CNH Industrial shutting European Agricultural facilities: CNH Industrial to temporarily shut several plants in Europe on supply disruptions | Reuters
Yesterday on our Machinery Pete Facebook page I asked our farm audience what they have been hearing in terms of New equipment lead time on iron they’ve purchased or were pricing. 73 comments posted. Eye opening stuff. Here are a select few:
So even if you want to buy New equipment right now…when will you get it? Can you get it? This equipment market now totally about AVAILABILITY.
…and How Much Has Cost of New Gone Up?
15-35%+
All this of course works to push potential buyers back into the Used market, which as I said from the top here, and as I’ve been saying all throughout 2021…USED MARKET IS ON FIRE.
Ok, just for fun now let’s consider that we’re sitting here in mid October and November-December coming dead ahead. Freight Train coming down the tracks folks. Get ready for the big time return of the YEAR END TAX BUYER of farm equipment. IRS Sec. 179 motivated buyers will be looking to minimize their tax bit on stronger farm income in '21 by buying equipment. This IRS Sec. 179 YEAR END TAX BUYING force has been at bay for 8 years now, since 2013.
Tidal Wave Coming…
You may recall that I’ve said often over my decades of reporting on the used farm equipment market that if I were having my own farm retirement auction I would definitely have it in November - December.
…because our Machinery Pete data has clearly shown it sells for more $$ at this time of year. In fact 16 of the past 18 years used farm equipment values have gone UP during 4th Qtr., shown clearly here in my Machinery Pete “Used Values Index” quarterly report going back exactly 20 years.
USED VALUES RISE IN 4TH QTR.
Which leads me to say this…I Have Never Seen a Better Time To Sell Good Used Farm Equipment.
Consider in my saying this that I am a stoic older Norwegian dude who does NOT like to speak in strong prophetic tones. Not my nature. But I have no prob calling it like I see it. And folks…I think the buyer demand for good condition used farm equipment is about to go higher yet. Listen to me yak more in depth about the current equipment market in my latest Machinery Pete Podcast episode, which just went live couple days ago: Machinery Pete Podcasts | Used Farm Equipment for Sale | Machinery Pete
If you are looking to sell some equipment items privately, here’s link you can get 'em listed in our Machinery Pete web site: Used Farm Equipment for Sale | Machinery Pete
Or if you are having an auction, please tell your auctioneer to call our Machinery Pete office and we’ll get the items on your auction into our equipment listings for sale at www.MachineryPete.com (call us at 844-727-6374, or customersupport@machinerypete.com).
Great time to be a seller. Buyer…I’m afraid time to get ready to pay more $$.
Pete
Machinery Pete
www.MachineryPete.com