Thrift shifts focus to pre-owned machinery at major Ag expo
By Jamie Martin
The Farm Progress Show, the largest outdoor agricultural event in the U.S., held in Boone, Iowa, showcased a surprising trend this year.
Amid the usual excitement for new technology, used tractors emerged as the main attraction, drawing significant attention from farmers seeking bargains under the economic pressure of low crop prices.
Mark Stock, CEO of BigIron Auctions, reported unprecedented interest in pre-owned machines, with offerings quadrupled from usual numbers.
The event not only attracted local farmers but also international visitors from Argentina, Brazil, and Israel, indicating a global interest in affordable farming equipment.
The shift towards used equipment is largely due to declining farm incomes influenced by ample crop supplies and subdued demand, which have kept grain prices at their lowest in four years. This financial strain is reflected in reduced spending on new farm machinery, with companies like AGCO Corp cutting their sales forecasts significantly.
Combines, particularly, have seen price adjustments. A model that fetched $300,000 during the pandemic is now selling for about $265,000 to $275,000.
According to Greg Peterson, known as Machinery Pete, the market for used farm equipment is just beginning to see the effects of these price drops.
Farmers like John Lawless, who manages 6,000 acres in Iowa, have responded by delaying new purchases and focusing on cost-cutting. This trend has coincided with advancements in farm machinery technology, prompting manufacturers like Deere & Co. and AGCO to offer retrofitting options to update existing equipment with high-tech features, providing a cost-effective alternative to investing in new, expensive models.
This blend of technological innovation and economic necessity is shaping the future of agricultural practices, as farmers balance the need to modernize with financial prudence.
Photo Credit - istock-arthon-meekodong
Categories: National