It's been a tough week in ag country.
Really not wanting to pile on, but simply reporting the facts here as I've been doing for nearly 30 years now...saw some very low prices on a farm auction today (May 16, 2019) in northeast Arkansas. As I've been saying since November of 2017, the good condition stuff has been holding its value well. But the ok condition stuff, been soft.
Perhaps now getting even softer.
Here are the facts from the northeast Arkansas farm auction today:
2012 CaseIH Magnum 290 with 3889 hours: $54,000
Pete's Note: "New record LOW auction sale price here on Magnum 290. Prior low price was $70,100. Avg. Auction Price last year on Magnum 290's = $90,761"
Lowest Auction Prices on CaseIH Magnum 290 Tractors
* Data by http://www.MachineryPete.com
2001 John Deere 8310 with 8339 hours: $35,500
Pete's Note: "6th lowest auction price ever on John Deere 8310 here. Avg. Auction Price last (9) 8310's sold = $57,028"
Lowest Auction Prices on John Deere 8310 Tractors
* Data by http://www.MachineryPete.com
2005 John Deere 9760 STS combine, 3506 engine hours: $26,500
Pete's Note: "2nd lowest auction price ever here on 9760 STS. Just off record low price of $26.000"
Lowest Auction Prices on John Deere 9760 STS Combines
* Data by http://www.MachineryPete.com
2013 John Deere 4105 with loader: $11,250
Pete's Note: "2nd Lowest auction price ever here on 4105"
Lowest Auction Prices on John Deere 4105 Tractors
* Data by http://www.MachineryPete.com
Couple things to point out here. One is the location of this auction today...Arkansas. Great folks there, lots of friends, but our hard cash auction sale price data has shown for a while now that this state has been one of the "softest" in terms of used values.
Pete's Point No. 2: Historically mid to late Spring, over my nearly 30 years tracking hard cash auction sale price data, has been one of the "softer" periods on the calendar. So many unknowns at this point in the year, plus all the folks who needed to upgrade their equipment lines for the coming year probably already have. Historically a tougher time of year to sell.
Pete's Point No. 3: It's still ALL ABOUT CONDITION...into early May still seeing very solid to strong auction sale prices on very good condition used farm equipment, pretty much of all types, but particularly if under $50K price line and also strong pricing seen on very good condition 8-10 plus year old equipment as the lower acquisition price vs price of new still drives many buyers.
Will keep tracking used values day by day...stay tuned. And hopefully one of these days it will quit raining...and hopefully someday soon we'll read a Sunday Tweet from a certain someone with some good news of certain negotiations successfully completed. Finally.