Back in June, we published an article addressing the surge in inventory levels within the agriculture equipment market. This increase was instigated by the post-pandemic recovery initiatives, prompting manufacturers to compensate for the previously diminished equipment inventory. The scarcity of equipment had previously elevated the value of both new and used items in the market. However, the subsequent influx of inventory led to an overall decline in value.
This was a trend that was predicted to go beyond summer and even continue into 2024, with Sandhills Global reporting back in August that the market industry-wide was trending towards equipment decreasing in value. A few months later, we see that most of those trends have come to fruition, as equipment auction values and asking prices are down. There is one exception to this downward shift, however:
High Horsepower Tractors.
As of the November 6th report by Sandhills Global, the value for used 300+ Horsepower Tractors has remained stable and even increased despite major inventory growth. The report stated that inventory levels rose 3.29% since September, with asking values rising by 0.27% and auction. Values by 0.66% during that same time frame. Since October of last year, inventory has risen by 84.19%, with the asking price up 10.47%. Since last year, it should be noted that auction values are down by 0.86%. However, that is still a surprisingly low decrease, considering how high inventory levels have risen.
Other auction sites have noted this trend, seeing that asking and auction values remain steady or high despite the major inventory increase. While this can be attributed to a shifting market, and the value will cool down and trend downwards again, it might not do so until after December.
That makes the remainder of 2023 a prime time to auction off a used high-horsepower tractor before asking, and auction values catch up with the rest of the agriculture equipment market and correspond with inventory numbers.
If you’re interested and looking for a trusted auction resource that wants to work with you and help you get the most out of your used equipment, reach out to our team here at DPA Auctions. We stand out from the competition as the premiere platform for selling and buying used farm equipment, empowering buyers and sellers alike with friendly, intentional, and honest. With DPA Auctions’ expertise in the auction industry, sellers can navigate this market landscape with confidence, maximizing their chances of a successful sale. Don’t miss out on this opportunity—choose DPA Auctions for your equipment buying and selling needs.