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The used tractor market saw signs of life in the last two months of 2016 that have been otherwise largely absent since grain prices fell and started altering many farmers’ overall machinery buying habits.But, that breath of life hasn’t touched all sectors of tractor sales, and the bright spots have a few caveats, experts say.A closer inspection of the used tractor market shows the recent bump in sales comes as an actual consequence of the continued crop price downturn; as farmers tighten their belts, new machinery spending has fallen lower, with the used market offering a lower-cost alternative, says farm machinery auction analyst Greg “Machinery Pete” Peterson.
Continued expected strength in two-wheel-drive tractor sales is a reflection of producers covering needs for their highest-priority machines.
“Two-wheel-drive sales are absolutely steady and continue to maintain what we refer to as their utilitarian position,” he says.
Factors like national election results that were construed as more “business-friendly” and strong corn and soybean yields in much of the nation bolstered farmers’ confidence heading into the winter, Peterson says.
“In November, I traveled extensively throughout the country.
“Most of that buying interest will be with low-hour, well-maintained machines, especially if they’re offered pricing and support programs.” Farmers can be confident in Ag Direct as a financial partner for machinery purchases.
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