The latest December 2024 Agriculture Market Report from Sandhills Global unveils striking trends in the agricultural equipment market, with inventory levels rising for several equipment categories and notable fluctuations in values. The report provides an in-depth look at used tractors, combines, sprayers, planters, and compact utility tractors in the U.S., highlighting month-over-month and year-over-year changes.
U.S. Used Tractors (100 Horsepower and Greater)
Despite a slight 1.46% month over month decrease in December, inventory levels in this category have been on an upward trajectory for six months, marking a 19.5% year over year increase.
U.S. Used Combines
Inventory levels for used combine harvesters edged 3.19% month over month higher, stabilizing, though they remained 2.76% lower year over year.
U.S. Used Sprayers
Inventory levels for sprayers reflected a 1.7% month over month decrease in December, yet the market remains in an upward trend that began five months ago, with levels up 19.48% year over year.
U.S. Used Planters
This market showed a sideways trend in December, with inventory levels falling 3.84% month over month and 5.26% year over year.
U.S. Used Compact and Utility Tractors
Inventory levels in this market have been on a downward slope for eight consecutive months, recording 1.28% month over month and 25.17% year over year decreases in December.
Key Takeaways
Sandhills Global’s December 2024 Agriculture Market Report highlights significant trends in the agricultural equipment market that can directly impact financing strategies. The continued rise in inventory levels across multiple equipment categories, paired with declining asking and auction values, presents both opportunities and challenges for lenders and lessors. With the EVI spread narrowing and certain segments, such as compact utility tractors, showing steep year-over-year declines in values, finance leaders should assess residual value risks and potential adjustments to loan structures. Additionally, understanding the nuances in high-horsepower tractor and combine markets can provide valuable insights for structuring competitive financing options that align with current market conditions. These data-driven insights are crucial for navigating the evolving dynamics of equipment financing in agriculture.
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