After price erosion, used sprayer prices will level out this year

The used sprayer market is going through a reset with prices eroding as supply catches up with demand. This is similar to what’s happening in the used row crop tractor market.

In January 2019, there were 3,147 used sprayer units for sale on tractorhouse.com. By December 2020, that number rose to 3,828. Two years later in October 2022, 1,284 units were available, a 66% decrease. Since then, inventory has recovered to 2019 levels at 3,075 units. 

Unlike row crop tractors, I don’t see an exponential leap in inventory over the next 18-24 months. Since 2016, the used sprayer inventory has maintained an average available inventory of 3,500 units. The sprayer market will reach new normal pricing this year and stay in that range for the foreseeable future. The driving factor in a more stable sprayer market is the ability to upgrade sprayer technology. 

Technology upgrades impact the market

Sprayer upgrade kits are opening the door to a broader customer base. In many cases, 10-year old machines and older are available for upgrades to technology on current-year model machines. 

Assuming the sprayer is in good working condition, meaning corrosion won’t affect the machine’s performance, an upgrade kit might cost half or less than buying the complete new unit. In the future, values of used sprayers will be based on what upgrades are available for the unit. Upgrade kits will mean all sprayers are in direct competition — whether they are new from the factory, on the dealer lot, or parked in the farmer’s shed.

Upgrade kits will also mean that a broader base of producers will have access to better technology at a lower entry point. I see used equipment becoming a more sought-after option as producers are constantly looking to extend their sprayer’s upgradeable life without sourcing a new kit each time a new generation sprayer is introduced to the market.

As new and more powerful sprayer technology is introduced more often, the speed of change in used sprayer values will change equally as fast. Used sprayers will continue to have the highest and fastest ROI of any machine in a farmer’s fleet; the great leveler will be the farmer’s appetite for change and growth with technology.

If you are in the market for a new sprayer, have a serious conversation with your dealer’s technology specialist and see what your options are. You will be surprised by the amount of new technology available for your old sprayer.

For more on used equipment, listen to my episodes on the Successful Farming podcast on the last Monday of each month, where Aaron Fintel and I explore current market conditions and factors driving used equipment. Please tune in to the Moving Iron podcast, where I track the economic drivers of the farm equipment business, and check out movingironllc.com for everything related to Moving Iron LLC.