The time is now for farmers or others thinking about selling used ag equipment to put it on the market.
Mark Stock, co-founder of BigIron Auctions, said used equipment continues to bring top dollar.
“People wanting to retire or who have retired and have machinery in the shed, we’re strongly encouraging them to sell right now because of unavailability of new stuff,” Stock told the RFD Radio Network.
Production of some new farm equipment encountered issues, ranging from shortages of steel and workers to computer chips, since the onset of the COVID pandemic more than a year ago.
And new equipment that does make it to the lot continues to move. The Association of Equipment Manufacturers reported new equipment sales in the U.S. increased 13.7% for tractors and 12.6% for combines the first half of the year compared to the same stretch in 2020.
The strong sales of new equipment are due in part to strong commodity prices and low interest rates.
And it’s having quite a trickle-down effect on the used machinery market.
“I’m seeing 15-year-old tractors bring more money than the seller paid for it,” Stock said.
“A farmer that reaped the rewards of the 2013-14 high commodity prices and went and bought a whole bunch of new machinery, so it’s kind of low-houred if they were a 400- to 500-acre farmer. And, if they retired in the last few years, they are sitting on a bucket of gold.”
BigIron started doing live interest bidding online in 2001 and added timed auctions in 2009. The company posts a very meticulous description of each item and numerous photos along with the seller’s name and contact information to help those in the market connect and maintain transparency.
“It kind of exploded on us and now we’re selling equipment across all of North America,” said Stock, who noted BigIron has 27 representatives in Illinois. “We want to be as close to the people who want to sell as possible.”
How much more ground will the used equipment market cover? Stock said BigIron already has sales booked through February.
“When will it (the bullish run of used equipment values) end?” he added. “It all depends on when the availability (of new components) starts to open back up again.”