Takeaway

The presenter, Machinery Pete, highlights a significant strengthening in the used farm equipment market, with auction prices for tractors, combines, and sprayers hitting multi-year or all-time highs. This bullish trend is attributed to a very tight supply of used machinery following three years of low new equipment sales.

What the presenter said

• Auction prices and used values for farm machinery have been on the rise since mid-June. [00:19]
• The presenter notes that the supply of used farm equipment is currently very tight. [00:23]
• This supply constraint is linked to over three years of low new machinery sales. [00:26]
• A 2013 John Deere 8235R tractor with 458 hours sold for an all-time record high auction price of $225,000. [00:51]
• A 2002 John Deere 8420 tractor with 1520 hours fetched $190,000, the second-highest auction price ever for that model. [01:03]
• A 2015 John Deere 9420R tractor sold for $320,000, its highest auction price in three years. [01:17]
• A 2010 John Deere 9670 STS combine sold for $147,500, the highest price in two and a half years for that model. [01:39]
• A 2011 John Deere 4730 sprayer with 785 hours sold for $210,000, the second-highest auction price ever recorded. [02:03]
• The record price for a John Deere 4730 sprayer remains $230,000, set in August 2012 for a new unit with only two hours on it. [02:17]

Trade ideas

• None stated. The presenter's market view is that prices for quality, late-model used farm equipment are exceptionally strong due to a lack of supply.

Levels and data cited

• John Deere 8235R: $225,000 (All-time record high auction price)
• John Deere 8420: $190,000 (Second highest auction price ever)
• John Deere 9420R: $320,000 (Highest auction price in three years)
• John Deere 9670 STS: $147,500 (Highest auction price in two and a half years)
• John Deere 4730 sprayer: $210,000 (Second highest auction price ever)
• John Deere 4730 sprayer (brand new): $230,000 (Record auction price, set in 2012)