Machinery Pete: Value is There for Used Farm Equipment Right Now

“I don’t think in your farming career, you’ll maybe see a better period for getting great value on late model used equipment than right now.”

That’s the prediction from Greg Peterson. You might know him better as Machinery Pete. He spoke Tuesday at Keystone Cooperative’s Co-op Classic held in northern Indiana. He explains why now is a good time to be a buyer.

“What we saw last year in ‘24 was an avalanche of dealer equipment hit the auction market. That’s been much less this year. And of course, at the top end, the manufacturers are just pinching off, laying people off, closing plants, trying to protect, as you’d expect they would, the price point. So, there’s still inventory available.”

Peterson says when corn and soybean prices turn around, prices on used farm equipment could skyrocket.

“I think we’ll see what we saw in ‘21 and ‘22, when the inventory of late model used is less…Guys on the grain side haven’t been buying anything new for a few years. Stretch it out a little more, whenever the spark comes, everyone will want that new planter, sprayer, tractor, combine. And one, it’s going to be hard to get it, because manufacturers are going to have to ramp back up. And two, the price you’re going to pay is going to be what you paid in ‘21 and ’22.”

The farm financial outlook isn’t very positive at the moment, but if you can invest in equipment, Peterson says now is the time.

“I totally understand the belt tightening period on the grain side, but the value is there, especially on the three- to seven-year-old tractors, combines, sprayers, planters. There’s some really good value that whenever this turns around, they’re going to go right back up.”

Hear more from Machinery Pete by watching our video below from this year’s Co-op Classic presented by Keystone Cooperative.