The latest Sandhills Global market reports underscore the extent to which auction value decreases are outpacing asking value decreases in Sandhills’ agricultural equipment marketplaces. This disparity is leading to an ever-widening and unprecedented spread between auction and asking values.
“Current market conditions are similar to those we experienced in 2015,” Ryan Dolezal, manager of TractorHouse, said. “We’re now beginning to see major declines in farm equipment prices as more inventory floods the market.”
According to the new Sandhills market reports, used equipment inventory levels continue trending up across all of Sandhills’ marketplaces, which include construction equipment, trucks and trailers. This inventory trend is putting added pressure on asking and auction values, which are maintaining lower levels than in 2023.
Additional Market Report Takeaways
Sandhills market reports highlight the most significant changes in Sandhills’ used heavy-duty truck, semitrailer, farm machinery and construction equipment markets. Key points from the current reports are listed below.
U.S. Used Tractors 100 Horsepower and Greater
- Used tractors 100 HP and greater are still accumulating on dealers’ lots. Inventory levels in this market were up 1.39% month over month and 36.97% year over year in July and are trending up.
- Asking values decreased 0.27% M/M in July and are trending down. However, asking values were 3.82% higher than the same period last year.
- Auction values continue to decline more rapidly than asking values and this divergence is creating an unprecedented EVI spread. Following several months of decreases, auction values fell 1.25% M/M and 6.75% Y/Y.
U.S. Used Combines
- The U.S. used combine market experienced a 3.21% M/M decrease in inventory levels in July. However, inventory was up 9.47% Y/Y and is trending sideways.
- Asking values dropped 1.91% M/M, increased by 8.1% Y/Y and are trending sideways.
- Auction values decreased 0.48% M/M after months of decreases and inched up 0.81% Y/Y. EVI spread, which measures the percentage difference between asking and auction values, decreased slightly in July to 54%, but this figure is still high compared to historical values.
U.S. Used Sprayers
- Inventory levels of used sprayers showed a marginal decrease of 0.04% M/M in July but remain significantly higher than last year, up 40.04% Y/Y. Inventory levels are trending sideways.
- Asking values dropped by 2.58% M/M and are trending downward but are still higher than last year, up 2.84% Y/Y.
- After consecutive monthly declines, auction values decreased by 2.48% M/M and 6.38% Y/Y in July. The EVI spread in this market reached 48%, approaching the 50% historic high observed in 2015.
U.S. Used Planters
- Following seasonal dips that began a few months ago, Sandhills reported a 7.63% M/M increase in used planter levels in July. Inventory levels remained higher than year-ago levels, up 11.06% Y/Y.
- Asking values ticked up by 0.8% M/M, dropped 2.04% Y/Y and are trending downward.
- Auction values rose 2.97% M/M but fell 18.48% Y/Y. Auction values are trending sideways. The EVI spread in the U.S. used planter market fell to 70% in July, but Sandhills notes that this figure is historically high.
U.S. Used Compact and Utility Tractors
- Declines in used compact and utility tractor inventory levels continued in July with drops of 3.74% M/M and 6.11% Y/Y.
- Asking values inched 0.37% lower M/M following months of decreases and were 2.82% lower Y/Y.
- Auction values have also been decreasing for months. This trend continued in July with decreases of 2.25% M/M and 5.32% Y/Y.
U.S. Used Heavy-Duty Construction Equipment
- Sandhills has observed significant inventory gains in used heavy-duty construction equipment. Following several months of increases, inventory levels were up 1.75% M/M and 20.43% Y/Y in July. The wheel loader category saw the largest gains, up 3.49% M/M and 32.81% Y/Y.
- Asking values posted a slight increase of 0.12% M/M and are trending down. Asking values were 5.13% lower than in July 2023.
- Compared to asking values, auction values showed greater declines, down 1.31% M/M and 9.98% Y/Y, after months of decreases
U.S. Used Medium-Duty Construction Equipment
- As in the heavy-duty construction equipment market, medium-duty construction equipment inventory levels exhibited noteworthy gains in July and at a higher rate. Inventory levels in this market were up 1.57% M/M and 45.69% Y/Y. The tracked skid steer category, up 62.44% Y/Y, drove these increases.
- Asking and auction values have been decreasing for months and this trend continued in July. Asking values were lower by 0.35% M/M and 6.9% Y/Y.
- Auction values were down 0.7% M/M and 10.97% Y/Y.
U.S. Used Lifts
- Continuing a trend of consecutive monthly increases, used lift inventory levels increased in July by 0.05% M/M and 10.07% Y/Y.
- Asking values dropped 2.29% M/M and 10.53% Y/Y.
- Auction values fell 4.26% M/M and 17.84% Y/Y. Both asking and auction values have been declining for months.
U.S. Used Heavy-Duty Trucks
- Within the U.S. used heavy-duty truck market, Sandhills noted a divergence between day cab and sleeper truck inventory levels. In the overall market, heavy-duty truck inventory levels fell 1.57% M/M and 3.95% Y/Y in July and are trending sideways. By contrast, day cab inventory levels increased by 1.49% M/M and 29.5% Y/Y and are trending upward.
- Values in this market continue to follow a downward trend. Asking values rose 1.35% M/M but were 16.01% lower Y/Y.
- The pattern was similar for auction values, up 2.17% M/M but down 17.52% Y/Y.
U.S. Used Semitrailers
- U.S. used semitrailer inventory levels increased 9.14% M/M, rose by a noteworthy 30.51% Y/Y and are trending up. The categories driving these inventory increases were dry van trailers (up 9.59% M/M and 49.9% Y/Y) and flatbed trailers (up 25.53% M/M and 32.9% Y/Y).
- Asking values increased 0.71% M/M, decreased 18.72% Y/Y and are trending down.
- Similarly, auction values increased 1.44% M/M, decreased 18.34% Y/Y and are trending down.
U.S. Used Medium-Duty Trucks
- Inventory levels in this market decreased by 2.83% M/M but are trending upward, posting a significant 20.88% Y/Y increase in July.
- Asking values decreased by 1.27% M/M and 12.94% Y/Y and are trending downward.
- Auction values declined 4.12% M/M, continuing a trend of consecutive monthly decreases and fell 18.28% Y/Y. The dry cargo delivery box truck category showed especially large drops in auction values, falling 10.71% M/M and 21.59% Y/Y.
