Row Crop Tractor Index by Tractor Zoom5/16/2022
Thanks to our great partners and tech team here at Tractor Zoom, we have been sourcing more and more data to help accurately and transparently determine equipment values. Having unfettered accesses to all that aggregated information also has allowed us to get a pretty decent handle on the current used equipment market!
You may have seen our Tractor Zoom Index a few times now in webinars and podcasts. If this is your first experience, this index is a summary of the 'strength' of row crop tractor sales at auction, accounting for significant factors like hours, horsepower, make, and how it was sold. With those figured into the sale price, we can get a better idea of if the market is moving up or down. No surprise this past year has been more of the former. The latter, a downward turn of the market, is the next big event many people are trying to anticipate.
Historically this tractor index began its climb in late 2019 with the resurgence of the commodity markets after they had been suppressed for a number of years. A book could be written for all the swings between now and then, but we'll save that narration for a later time. Looking at the most recent data point, April 2022, the market continues to surge. April recorded an index value of 0.35, up from 0.3 in March, and considerably higher than 0.17 this time last year.
There were 43 tractor sales that went into this April index calculation. We don't have time or space to break down all of them, yet to reinforce this continual market momentum, two sales are highlighted below.
Our first example is anything but low-houred. This John Deere 2013 7200R had almost 15,000 hours and sold in late April at consignment in Oklahoma. Sale price of $58,300. Compare that to all seven of the 7200R's currently listed on dealers lots between $58,000 - $59,000, all of which average less than 10,000 hours!
This is not an isolated example either (which is the point of the index). This next tractor is on the other end of the spectrum, with the highest sale price in our April sample. An 8360R with 1,620 hours sold for $272,000. The closest price comparable we have of this model sold 15 months ago, with only 62 hours, for $222,000.
We look forward to sharing this index, as well as our TZ Combine Index, with you in future months. If you have questions or suggestions on how this information can be more helpful to you, please let us know.