Overall, used equipment values trended higher in the fourth quarter, according to the latest Machinery Pete’s Quarterly Used Values Index Report. Rural equipment categories mostly trended steady, but higher than the overall index.
The overall index measured 6.6, up from 6.4 in the third quarter. Index levels for rural equipment categories were in the 7.4-8.4 range.
The report is prepared by Greg Peterson (“Machinery Pete”) using data from a network of 1,000 regional auctioneers, 600 ag lenders, 2,000 implement dealers and thousands of farmers across the U.S. and Canada.
Here are data and comments from Peterson showing a breakdown by segment and the comparison with the third quarter index.
Tractors 100 Horsepower and Under Index: Steady at 8.4
Background: Auction sale prices have remained consistently strong on good condition tractors and search traffic for the category on MachineryPete.com remains robust.
Forecast: “Hold: The general economy is strong, stock market has been up, hobby farm folks will continue to be in buying mood, which bodes well for this < 100 horsepower used tractor category,” according to Peterson.
Record Price: $38,500 for Kubota M8450 with loader, Oct. 1, 2016 consignment auction in east-central Texas.
Garden Tractors Index: Down at 7.4
Background: There is still solid buyer demand, but the category is out of season.
Forecast: “Up slightly: General economy good; end of 1st quarter and springtime likely to see motivated buyers with more money to spend,” says Peterson.
Skid Steers Index: Steady at 7.8
Background: “Solidifying used values” were seen in the fourth quarter.
Record Price: $24,000 for 2000 Case 75XT with 280 hours at a Dec. 3, 2106, farm auction in northwest Iowa.
ATVs Index: Down at 7.2
Background: There was a slight dip, with used ATVs/utility vehicles in fair condition selling “softer.” Dealers are also carrying excess inventory of new models.
Forecast: “Hold to down slightly: There might be bit more of a drop in used values before ‘footing’ is found. Will be high volume of auctions in the first 1st quarter 2017,” according to Peterson.