Sandhills Global, in its October agriculture equipment report, found that, overall, inventory levels, asking values and auction values are on a downward trend for agriculture equipment, with few exceptions including an inventory increase for used tractors (100 horsepower and greater) and an increase in asking values for used combines.
U.S. Used Tractors 100 Horsepower and Greater
- Inventory levels in this market were up 1.61% month over month and 29.04% year over year in October. These increases were driven largely by high-horsepower tractors; inventory was up 46.54% Y/Y in that category.
- Rising inventory is continuing to put pressure on values. Asking values were up 0.7% M/M in October but down 3.61% Y/Y, continuing a six-month-long downward trend. The 175-299-hp tractor category showed the most notable decrease, down 6.69% Y/Y.
- Auction values have been trending down for seven consecutive months. Auction values were up 1.48% M/M and down 13.77% Y/Y, with the greatest decrease observed in the high-horsepower tractor segment, down 14.89% Y/Y. Although asking and auction values are both decreasing, auction values are declining at a faster rate, causing the EVI spread to climb. EVI spread, which measures the percentage difference between asking and auction values, remained historically high for farm equipment at 47% in October. Although this figure is 1% lower than in September, it is still higher than previous peak values observed in 2015.
U.S. Used Combines
- Inventory levels of used combines in Sandhills marketplaces have been declining for several months. This continued in October, with inventory up 7.62% Y/Y but down 5.73% M/M.
- Asking values ticked up slightly, by 0.8% M/M and 0.9% Y/Y, in October, but are trending down.
- Auction values were up 0.52% M/M and down 7.99% Y/Y and are trending down. With auction values falling faster than asking prices, the EVI spread remains high; EVI spread was 56% in October, much higher than the 45% value typically observed in this market.
U.S. Used Self-Propelled Sprayers
• Inventory levels for used sprayers continue to rise and are trending up. Inventory rose 3.66% M/M and 28.38% Y/Y in October.
• Asking values increased 0.31% M/M and decreased 5.27% Y/Y, continuing a steady trend.
• Auction values were up 2.83% M/M and down 20.62% Y/Y in October, continuing a seven-month-long downward trend. The EVI spread remains elevated with auction values falling significantly faster than asking values. Although the EVI spread for used sprayers dropped from 62% in September to 58% in October, it remains higher than the historic peaks observed in 2015.
U.S. Used Planters
- Inventory levels of used planters in Sandhills’ U.S. used marketplaces remained steady in October, decreasing 0.54% M/M and increasing 1.07% Y/Y. Inventory levels in this market are trending sideways.
- Asking and auction values have been declining for several consecutive months. Asking values fell 1.81% M/M and 10.11% Y/Y in October and are trending down.
- Auction values dropped 3.31% M/M and 24.07% Y/Y. With auction value decreases outpacing asking price decreases, the EVI spread for this market rose to 69%, only slightly lower than the historic peak of 72% observed in 2015.
U.S. Used Compact and Utility Tractors
- Sandhills noted downward trends across the board for used compact and utility tractors. Inventory levels fell 4.95% M/M and 21.41% Y/Y and are trending down. Less-than-40-hp tractors showed the greatest inventory drops, down 26.51% Y/Y and 6.82% M/M.
- Asking values decreased 0.17% M/M and 4.38% Y/Y, marking the tenth consecutive month showing a downward trend. The less-than-40-hp tractor category also stood out in this area, with auction values down 5.25% Y/Y.
- Auction values ticked down 0.19% M/M and fell 5.86% Y/Y, continuing an eight-month-long downward trend. Again, the less-than-40-hp tractor category led the way in decreases, with auction values down 2.35% M/M and 8.4% Y/Y.
Sandhills Global also released the October agriculture report for Canada.
