I know things are getting tough financially out there for many folks, and that’s well publicized. What isn’t well publicized – just how hard it is to sell large, $100,000+ farm equipment. These are much different times and we all need to manage our expectations.

Have you ever thought about selling a major piece of farm equipment yourself? It used to be easy. Throw it up on your favorite popular listing website(s), price it somewhat within reason, and you’ll surely get calls from serious buyers with cash to burn. This is no longer the case in 2019. It’s a new ball game out there folks.

Back in the summer of 2016, I wrote a post called “The Ideal Ag Equipment ‘For Sale’ Ad”. Part of that post was born out of frustration, it seemed like a high percentage of the $200,000+ had very poor descriptions. It’s a tad better these days, but still frustrating. The point is, without these details, you’re almost sure not to get calls from serious buyers these days. — And to add to that list, you’d better have a high quality video to go with that high dollar piece these days.

SOCIAL MEDIA

So what’s different about listing farm equipment for sale in 2019? Facebook Marketplace and Buy/Sell groups in particular have gotten so popular that it’s almost a must to list in these anymore. In the past two months, I’ve sold several smaller shortline pieces within two days of posting them. Social media may not cure the time to sell larger farm equipment, but if you’re not on at least Facebook Marketplace, you are missing out on potential buyers. Twitter still holds some value here as well.

PRICING

No longer can you look at what everything else is listed for. It literally doesn’t matter in most scenarios. On most websites, you cannot tell how long something has been listed. I promise, there is more equipment out there that has been listed for at least a year or two than you’d ever think. Not even being in the top few cheapest of a particular model of the piece on TractorHouse guarantees you calls anymore.

FINANCING

Have you looked at interest rates lately? While nothing is out of control just yet, rates are substantially higher. Even special dealer/manufacturer subsidized rates aren’t the long term 0% deals they used to be. And by the way, those deals still hurt the market today. Who would want to trade out of something they have financed at <1% for 5%+ interest, and take a beating on the trade at the same time? Make sure to really study those lease “deals”, and consider you liability for repairs on those machines before signing as well.

WHA’TS HOT

• Planters, especially late model 12-16 row corn planters.. so few new planters have been sold the last couple of years, the used supply is way down, especially of planters less than 5 years old
• Any nice condition piece under $50,000-$80,000.. I don’t know exactly what the deal here is, affordability for one factor, maybe some of those market facilitation program (tariff) payments is another

WHAT’S NOT

• Combines.. yes, I know it’s getting old saying this, but the truth is there’s still way too many. Some 1-3 year old pieces have shown improvement, only because of the crazy price increases on new iron
• Anything over $150,000… Think about the number of people that can afford (or get approved for) payments on these machines. The pool of people that can purchase these big ticket items is certainly much smaller than it has been in at least 10-15 years.

WHERE WE’RE HEADED

I wont lie, I don’t see much good happening anytime soon.. I scan most articles about equipment sales, but I don’t take much of it with a grain of salt. I’m really tired of everyone calling a bottom, or only pointing out the best sales. Reality is, if we can’t move the used iron, and the new iron continues on with the crazy price increases, not much good will happen in the farm equipment sector this year.

If you’re looking at selling a piece of large, late model farm equipment and would like a full service consignment, please see AaronBobeck.com for my contact information