| ||||
|
|
Used farm machinery hot item at auctions
WAVERLY, Iowa (AP)--Farmers are turning retro.
Used farm machinery is bringing top dollar at auctions and dealerships. But that doesn't seem to be deterring buyers. Demand for clean, field-ready hand-me-downs is as strong as it has been in years.
Dealers report tractors of literally any size, sprayers and hay equipment are being snatched up almost as fast as trade-ins make it out to the lot. Bidders are apparently going hog-wild at auctions for implements as well. Even used combines that used to be as hard to sell as air conditioners in Antarctica are now harvesting corn instead of collecting dust.
The result: Farmers planning a retirement auction will begin their golden years a little more golden. And when it comes to buying, timing is everything.
"If (farmers) see something they want, they don't want to hesitate too long. It could be gone the next day," said Randy Runge, sales manager for Phelps Implement. The John Deere dealership has locations in Grundy Center, Greene and Hampton.
Prices have jumped 5 percent to 20 percent in the past year, according to dealers and the F.A.C.T's Report, an Internet site that provides prices and information on used machinery. Dealers say competition keeps their prices at the lower end of the scale.
A combination of factors has led to the buying frenzy--high steel prices increasing the cost of some new equipment, big crops the last two years along with profitable prices much of last year and favorable tax incentives.
"Compared to new, used prices are still a good deal. New prices have gone up accordingly (to used)," said Brent Judisch, a salesperson at Waverly Implement.
Manufacturers are also playing a role, dealers said. Major players like John Deere and Case I-H are showing more economic restraint by not building excess inventory like in the past. While dealers keep a few new large ticket items on the lot, a majority of sprayers and tractors heading down assembly lines are already spoken for.
F.A.C.T's publisher Greg Peterson reports a John Deere 3020 diesel tractor nearly 40 years old, but in mint condition, sold at an auction last month for $19,000. This was $3,000 above the previous record.
The average auction price for this model last year according to F.A.C.T's was $6,721. The average dealer price was $8,640.
Three years ago, 3020s were averaging $5,680 at auction.
As farms continue to grow, the need for higher horsepower tractors and bigger equipment increases as well. Judisch, who also farms near Waterloo, said either farmers want to upgrade economically or they don't want to wait for new equipment. He said a tractor or sprayer ordered now wouldn't be in by planting time.
So, paying $52,500 for a John Deere 7410 tractor--reported by F.A.C.T's from a Feb. 12 auction in west central Iowa--is worth it for some, even though it wouldn't have brought that 12 months ago.
"The economy has changed, bringing back the middle-sized farmer (willing to pay $40,00 to $60,000 for a better tractor)," Judisch said. "That farmer wasn't there before."
Date: 2/23/05
Copyright 1995-2008. High Plains Publishers, Inc. All rights reserved. Any republishing of these pages, including electronic reproduction of the editorial archives or classified advertising, is strictly prohibited. If you have questions or comments you can reach us at High Plains Journal 1500 E. Wyatt Earp Blvd., P.O. Box 760, Dodge City, KS 67801 or call 1-800-452-7171. Email: webmaster@hpj.com
 
| |||||||||||||||||||||
