Understanding the current supply, demand, and values of major equipment categories is critical to making informed business decisions that help you achieve your goals.
Andy Campbell, Director of Insights at Tractor Zoom, recently lead a market update with in-depth analyses of major equipment categories during a
Tractor Zoom Market Trends webinar, and we've summarized the takeaways so that you can keep a pulse on the market and investigate further which equipment categories matter most to you.
Here are the key highlights:
The market for agricultural equipment is softening, with declines in values and turnover rates across various categories.
Platform headers and row crop headers are seeing 10-15% annual declines, with newer models faring worse.
Combine values are down 6-11% for Class 7-8 models, while Class 9-10 models are more resilient.
Utility tractor turnover is down 15%, with attachments significantly influencing valuations.
Pre-DEF row crop tractors are holding value better, but newer models are seeing 5-9% annual declines.
Four-wheel drive and self-propelled sprayer values are also softening, with 10-19% drops.
Planter turnover increased 8% year over year, as dealers work to move high-value inventory.
Read on for more insights into these equipment categories.
Combine Market Update
This update is primarily focused on Class 7, 8, and 9 combines.
Class 7 Combines
The Class 7 combine market remains flat year over year. During a recent equipment auction, we saw the first Class 7 combine sold well above market value and subsequent sales were closer to or below market value, suggesting a lack of premium buyers. Specific models, including the John Deere S760, CLAAS Lexion 7400TT, and John Deere S770, are selling on the line of what we've seen in the last 30 days or at or slightly below market value.
Class 8 Combines
Class 8 combines have experienced a significant downturn, with an 11% drop in the overall turn rate from last June to this June. Specific models like the Case 8251 and John Deere 780 show year-over-year drops of 11% and 6%, respectively. This decline builds on an already downward trend from the latter half of last year. New Holland combines display more variability due to limited auction data.
Class 9 Combines
In contrast to Class 8, Class 9 combines are faring slightly better, with values down only 3-6%. The supply of these newer combines is growing and the turn rate has increased by 10%. Some Class 9 models are even being priced at or above the 2024 market trends, indicating less downward pressure.
Utility Tractors
It's important to note that the turn rate for utility tractors has dropped by 15% year over year. For compact and sub-compact tractors, we know attachments significantly influence the equipment valuation. In Tractor Zoom Pro, we leverage
TZ AI Smart Descriptions to help identify the critical value drivers to better identify those within the platform.
Row Crop Tractors
Row crop tractors, often considered the cornerstone of the industry, are showing resilience despite market fluctuations. A John Deere 8130 sold for a premium at a recent auction, indicating high demand for pre-DEF machines. The high value of larger tractors is likely peaking, with smaller crop tractor markets seeing a 16% drop in turns. However, larger row crop tractors saw a 25% reduction in unit turns from the first quarter of 2023 to June. Models like the Magnum 340 have shown a recent softening in sales, emphasizing the importance of accurate tracking and transparent data.
We've seen a significant increase in low-hour John Deere 8R 410 models entering the auction market, possibly due to interest rates, the lower farm economy, and buying patterns of farmers. Larger row crop tractor markets have seen a 5-9% year-over-year decrease. Four-wheel drive tractors experienced a 14% drop in turn rate, likely due to supply chain issues, suggesting a potential correction in this segment.
Self-Propelled Sprayers
Self-propelled sprayers have seen a 14% drop in turn rate, indicating higher risk for dealerships. Valuations for these sprayers have decreased significantly, with older models dropping around 19% and newer models around 10%. The Case IH Patriot 4440 model shows a balanced trend line.
Planters
In February, March, and April of 2024 vs. 2023, planter turn rates increased by 8% year over year during the prime selling season, suggesting dealers moved high-value planter models more quickly this year.
Reach out via email to Andy Campbell (acampbell@tractorzoom.com) for more information and with any questions you may have about the current supply and values in the equipment market.