Spring is here: Everything you need to know about selling your equipment
Spring is here, and the farming community is now focused on the planting season. Despite the struggles on Wall Street due to threats of COVID-19, demand for used equipment on the online auction platform remains strong. Farmers can have on average, $170,000 worth of equipment they are not using. If this equipment hasn’t been used in 18-months, it’s a good time to sell it. The profit can be applied to purchase something they need or put toward other debt.
Some farmers question whether their equipment still has significant value or if their equipment is too obsolete to have any real value compared to newer technology. We find that the latter example is an especially prevalent attitude amongst our sellers, a misconception that could be the sole thing standing between a farmer and a decent profit. Some farmers might feel attached or feel the need to keep the machine since it is paid for, but we recommend selling used equipment and reinvesting your profit.
People always want to know what equipment is selling best; what type of equipment depreciates faster; or what items maintain their value.
What equipment is hot this spring?
Of course, with planting season, planters are a hot item this time of year, and we always see a big increase in demand with farmers looking to purchase. Some farmers prefer to have two machines running at the same time to cover so many acres.
Similarly, sprayers, tillers and hay equipment sell very well in the spring. This is the time to check your shed and consider selling these unused items. For buyers, it’s a great time to buy as there is a robust inventory of these items available.
Year-round, tractors are a popular item, especially if they are well-maintained. Tractors hold their value considerably well and older models are specifically a sought-after item because unlike newer, computer-driven models, many farmers can fix them if they break down. Modern equipment can be harder to fix and create more downtime if a specialized mechanic is needed.
Grain drills are also a hot selling item year-round. Take note and take stock of your sheds.
Now or later
Let’s address the question of selling sooner versus later. In the spring, farmers prioritize planters, sprayers, tillers and hay equipment and as planting time approaches there is less of a demand for these items. This is the time to check your storage shed and sell the hot items for planting season.
Combines are another item that farmers should consider selling sooner rather than later because they lose their value at a rate of 8% to 12% a year. Forage harvesters are also an item that should be sold sooner rather than later because they drop in value faster due to being high maintenance machines and experience heavy wear and tear.
Sample pricing in our area
Below are some examples of equipment and prices for our area:
• Tractors sell well year-round, and this spring is no different. Recent results in the area include:
− 1998 John Deere 7810 2WD Tractor sold for $54,500 in South Dakota.
− 1995 Ford New Holland 8670 MFWD Tractor sold for $49,000 in Minnesota.
• Planting equipment is also obviously hot this time of year:
− 2009 Sunflower 1435-26 26’ Tandem Disk sold for $21,255 in South Dakota.
− 1991 New Holland 2000 3x4 Large Square Baler W/New Holland 2010 Accumulator sold for $10,000 in Minnesota.
Online auctions are now more than ever a safe and easy way for both buying and selling used equipment. If you’re in the need for equipment for the growing season, it is a good time to shop as robust inventories, competitive prices and strong demand are expected to continue through the spring.