Inaccurate machine reconditioning can completely wreck inventory. If the estimate during the sales process is too low or something was missed, the end result could be a loser for the dealership. If the Recondition Estimate is exceeded, the unit could be sold for a loss.

Inaccurate machine reconditioning can completely wreck inventory. If the estimate during the sales process is too low or something was missed, the end result could be a loser for the dealership. If the Recondition Estimate is exceeded, the unit could be sold for a loss.

The ag economy is fragile at best! Interest is creeping up, commodities prices are soft, and the ability to make profit is a struggle day-in-day-out.

The planter market has been a roller coaster since 2014. Four years ago, if you had a planter larger than a single row you had a hard time getting rid of it. Like other equipment segments, planters were highly produced and the market was flush with inventory. Used planters had piled up on dealer’s lots and the auction market was the new place to buy used planters.

Our expert Casey Seymour answers a reader's question about on valuing equipment for spring auctions in this latest installment of the "Ask the Expert: Remarketing Used Equipment" series.

It’s not a shock to anyone when I say over the last 5 years auction activity has greatly increased. At the end of 2014, used equipment inventories where at all-time highs. The auction market became a dumping ground for all kinds of equipment — late model, high hour and everything in between.

The planter market has been a rollercoaster since 2014. Four years ago, if you had a planter larger than a single row you had a hard time getting rid of it. Like other equipment segments, planters were highly produced and the market was flush with inventory.

In 2013, the signs of a looming collapse were becoming clear. In Farm Equipment, Dr. Jim Weber had been writing a series titled “The Business of Selling.” An article from the series “Gathering Storm Clouds” was posted in July 2013. I am paraphrasing but, in the article, Dr. Weber talks about low return on sales, dealerships dependence on volume and market share payments. Because of the low returns, dealerships should have been failing in droves. But because of record high commodity prices, record low interest rates and record on-farm income, dealerships were able to spike margins with new and used wholegoods.

In 2013, the signs of a looming collapse were becoming clear. In Farm Equipment, Dr. Jim Weber had been writing a series titled “The Business of Selling.” An article from the series “Gathering Storm Clouds” was posted in July 2013. I am paraphrasing but, in the article, Dr. Weber talks about low return on sales, dealerships dependence on volume and market share payments. Because of the low returns, dealerships should have been failing in droves. But because of record high commodity prices, record low interest rates and record on-farm income, dealerships were able to spike margins with new and used wholegoods.

My outlook for the 2018 used equipment market is going to be the same as 2017 to slightly better. I think good quality used equipment will sell and condition and hours will be the main seller of this equipment. The 1-5 year old stuff will be the sweet spot.