Two forces drove used track tractor values higher in July 2019.
Harvest 2018 followed by a similarly nightmarish late and wet planting season in 2019 prompted more folks to shop for track tractors so they could get in the field.
Increase in Commodity Prices
Corn north of $4.50? While that obviously doesn’t solve every pain point, it beats $3. When commodity prices did jump higher, I immediately saw auction prices do the same on used iron in good condition.
Let’s look at Case IH Steiger 550 Quadtrac tractors to illustrate the increase in track tractor values. Note the pair of 2014 models in the data table that sold for $254,000 and $249,000 at a July 17 farm auction in northwest Minnesota. Those are strong hard cash prices. In fact, the average auction price on the last eight 550 Quadtracs that sold is $218,814, while the current average dealer advertised price is $219,707.
You know it’s a hot equipment sector when the average auction price runs neck and neck with the average dealer advertised prices.