Machinery Pete, who writes for AgWeb, wrote recently that high-horsepower tractor prices are poised to increase over the next few months.
“If you’re thinking about buying a new or used tractor soon, you might want to move up your timeline,” he wrote.
Currently, the tractor segment in North America is a bit of a mixed bag: High horsepower tractors are seeing decent demand from farmers while sales of lower horsepower models are in decline. Major manufacturers have responded accordingly to overall lower demand for new machines by pulling back on production. This has led to new machine delivery delays and an uptick in farmer interest in the used market, he wrote.
“I think we’re seeing a little shaking loose of the purse strings,” said Machinery Pete.
“I’ve been talking about it for a few months now, but you must be careful of assuming the slow playout like we’ve seen in other downturns in terms of used equipment supply because dealers were so aggressive over the last 18 months pushing stuff out to auction. Given the stronger prices now, I wonder if that will jar dealers to be more (price) aggressive this spring and into the summer?”
