Yes, while you normally read about used machinery prices in my column, today I’m diving into another auction trend. During my career, I’ve also kept tabs on farmland values via our network of 1,100 North American auction firms.
Here’s what I’m seeing in regard to farm equipment and farmland values: The good is holding value pretty darn well, while the not-so-good values are sliding.
These truths were driven home on both fronts with a pair of late 2019 auctions by our friends at Zomer Auctioneering in northwest Iowa.
On Nov. 25, 2019, a 67.3-acre tract of good farmland sold for $16,800 per acre in Sioux County, Iowa.
Eight days later, in Larchwood, Iowa, Zomer Auctioneering sold a sharp 2002 Case IH MX220 tractor with 3,700 hours for $60,000. That is the highest auction price on an MX220 in five years. The tractor’s very good condition attracted strong buyer demand and a big price (particularly in that 10-year-old range).
As you can see in table below, good condition leads to strong prices, while average condition equals soft prices.