Machinery Pete

Harvest Desk
11:26 am
Tue September 24, 2013

Sticker Shock - It's Not Just On New Tractors Anymore

Some estimates peg the market for used farm equipment in the U.S. at more than $100 billion annually, about five times the amount spent on new equipment each year.
Credit The Knowles gallery/flickr

Buying a new farm tractor costs almost as much as a new home in a decent suburb.  

Shelling out $200,000 or more for shiny new John Deere, Case IH, New Holland or other name brand horsepower to work the fields of a 21st century Midwestern farm isn’t unusual, farmers and dealers say.

What seems more unusual, to newcomers to farm economics at least, is that those shiny new models aren’t the hottest selling big iron on many dealers’ lots.  That would be the used tractors that were traded in when the new models rolled off the dealers’ flatbed trucks.

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