AgriPost January 29 2016

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The Agri Post

Older Tractors Hot Commodity at Auctions

January 29, 2016

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By Les Kletke This is the time to upgrade your horsepower according to Greg Peterson or Machinery Pete, as he is known to his Facebook and YouTube followers. Peterson told an Ag Days audience that this is the time to upgrade tractors. “You may not want to buy horsepower at this time, but this is exactly the time,” he said. “When everyone else is buying is not the time to get into the market. We have seen the price on large late model equipment sliding since 2013 and it is not going to continue forever. If you need some extra power on your farm this is the time.” Peterson said he has been getting a large number of calls from American buyers who are wondering about the depressed Canadian dollar and how they can take advantage of it. “I tell them the dollar gives them a big advantage but they still need to find the equipment that fits their needs,” he said. “There is no doubt the equipment is around, they just have to source it.” Peterson said one market that has remained strong is good quality older equipment. “We see those tractors that are 10-20 years old and have been shedded, selling for a premium at every auction we go to,” he said. “Farm auctions bring the best price and dealer or consignment sales

Greg Peterson or as most people know him… Machinery Pete.

“There is not an auctioneer that does not open the bidding with, ‘you know the price of a new one’ and then go into the bids.” are slightly lower.” The value of older equipment does not surprise him. “Not a bit. That equipment has always sold well and it is bringing more of a premium because of the price of the new stuff and the fact that it is not being made. I see guys paying a lot of money for 6 row planters because they are not being made and if they want one, they have to buy a used one, and they want a good one.”

He said auctioneers are well aware of the trend, “There is not an auctioneer that does not open the bidding with, ‘you know the price of a new one’ and then go into the bids. That works,” he said. Peterson said that for farmers selling equipment there are a few things they can do to get a better price. “Don’t have your sale when the calendar is crowded with sales and for heaven’s sake don’t be the last sale of the season,” he said. “Try to be early even if it is not the traditional sale time.” He recommends pictures and more pictures for any equipment being listed for sale. “And a video telling the story of that piece of equipment, buyers want to know the story. Give them a video. They don’t cost anything and they bring you a good return.”


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AgriPost January 29 2016 by AgriPost - Issuu