2021 Q1 Equipment Report3/24/2021
The 2021 agriculture industry is off to a hot start, and used equipment is no exception. In this quarterly equipment report we focus in on large tractors over 300 horsepower. The dataset we are examining looks at a healthy sample size of over 1,400 tractors from the Tractor Zoom database, all with sale values over $50,000 to focus on field-ready tractors. If you'd like to compare this with a similar report from last year, you can see what the 2020 1st quarter equipment report looked like here.
Your main takeaway is that equipment prices are up anywhere from 5-15%, depending on the age, and make/model. Be sure to log into Iron Comps to analyze year over year comparisons if you'd like to see exact comps. The proportion of John Deere to Case IH is consistent with what we've seen in prior quarters, although the
The other trend to consider is that it is becoming harder and harder to find low-hour quality machines at auction. This move has been trending for a few years now and appears to be continuing into 2021. This trend is showcased in the video below.
The cost of a used tractor right now is more dynamic than we've ever seen before. For those appraising the value of equipment, be sure you have the most recent market data. If you were using last year's first quarter data to value a 350 horsepower tractor, you could be undervaluing that machine by $10K. Even if you were using values published from just last quarter, you would still be $4K below current market value.
If you are interested in an in-depth look into this report, or an analysis on another equipment category, just reach out to us to schedule some time. We are always happy to discuss shop.