The latest Sandhills Global Market Reports, Lincoln, Nebraska, show used farm equipment inventory remains fairly flat month-over-month since Q4 2021, while inventory levels among late-model trucks and construction equipment aged 10 to 25 years posted increases.
Unlike the used truck and construction equipment markets, used farm equipment inventory levels remained flat in terms of both year-over-year and month-over-month figures. Farm equipment inventory was down 37.2% year-over-year in February; by contrast, inventory was down 37.4% year-over-year in January. Across all age groups, farm equipment inventory levels have been roughly flat month-over-month since Q4 2021 following a steady decline that began in mid-2020.
Used construction equipment inventory was down 46.1% year-over-year in February, a further drop from the 42.5% year-over-year decline posted in January. Late-model construction equipment inventory continued to show a month-over-month decline as well, down 26% in February, driving the overall trend down. Late-model (0- to 5-year) construction equipment inventory levels remained flat year-over-year in February, continuing a steady decline since February 2021. The 10- to 25-year group, however, showed noticeable improvement, up 12% in February compared to January.
Overall heavy-duty truck inventory remained fairly flat month-over-month for the fourth month in a row following a steady decline that began in April 2020. Inventory was down 52.7% year-over-year in February 2022 compared to February 2021, which marked a nearly 6-percentage-point improvement over January 2022. An upswing in late-model truck inventory levels drove that change. Specifically, trucks in the 0- to 5-year group showed a 6% increase in February compared to January, signaling that production of new equipment may be driving late-model equipment to the used market.
The key metric used in all of Sandhills' market reports is the Sandhills Equipment Value Index (EVI). Buyers and sellers can use the information in the Sandhills EVI to monitor equipment markets and maximize returns on acquisition, liquidation, and related business decisions. For 2022, Sandhills has enhanced its EVI with new metrics. The data now includes model year equipment actively in use, which grows the used equipment population beyond that available in auction and retail markets. New EVI data, already available for the United States, is also now available for Canada to better reflect machine values by location. The enhanced version of Sandhills EVI requires Sandhills to restate the values starting in January 2022, so prior numbers will not be comparable to the new, more insightful values.