Backhoe prices drop

The steel, rubber, and components shortages that plagued manufacturers of farm machinery also afflicted construction equipment makers. Home building, one of the industries they served, enjoyed huge demand during the COVID-19 pandemic, leaving construction companies desperate for replacement machinery. 

When the supply chain started to return to normal this year, both the manufacturing and sales of one mainstay of construction, the backhoe loader, skyrocketed. This has fed a healthy supply of used backhoes to the marketplace, creating an opportunity to either upgrade an old backhoe or invest in this popular piece of construction equipment. 

This price guide bears witness to this opportunity. I focused on what appeared to be a bulge of backhoe loaders that were built in 2017 and 2018. 

“Ongoing inventory increases have led to decreased auction values across the construction equipment, farm machinery, heavy-duty truck, and semitrailer categories in Sandhills marketplaces,” notes Mitch Helman of Sandhills Global (sandhills.com). “As we continue seeing inventory levels rise across our markets, a corresponding drop in auction values is to be expected. The spread between asking and auction values is especially pronounced for medium-duty construction equipment, medium-duty trucks, and high-horsepower tractors.” 

That spread is expected to narrow this fall and winter, opening up pricing opportunities. Helman has found that asking prices for medium-duty construction equipment in 2023 have dropped nearly 2%, and auction values have slipped by 7%.

Newer backhoes, more affordable

Typically, farmers and ranchers look to buy backhoes that are at least 10 years, but this market presents the opportunity to pick up newer machinery that carries fewer hours.

Be warned about construction equipment: Backhoes, skid-steer loaders, telehandlers, and excavators all rack up more hours relative to their age than farm machinery because they are employed year-round. Additionally, specifications among makes and models can vary greatly.

Here’s a quick guide to aid your search.

Other revealing performance markers include backhoe bucket force and loader breakout force, both of which are determined by the machine’s hydraulic capacity and how stout the backhoe’s construction is.

These specifications come into play when pairing a machine with the job being tackled. 

For example, you could get by with a smaller backhoe for around-the-farmstead trenching jobs, but you would definitely want to consider a larger loader if you plan on doing a lot of drainage ditch maintenance, which calls for greater digging depth and lift capacity.

Inspecting a backhoe for potential purchase

Construction equipment often isn’t as well cared for as farm machinery because its owner isn’t always the operator. Still, I’ve seen contractor backhoes in a condition that rivals anything selling from a farm.

As is the case with all used equipment, it pays big dividends to inspect a potential buy before pulling the trigger. 

The first step is to get the serial number off the backhoe to verify its model year. Most manufacturers have gone to a 17-character system where the 10th character from the left denotes the model year of the machine.

Next, list all the backhoe’s major features, such as four-wheel-drive, rollover protective structure (ROPS) vs. cab, extendable hoe, bucket size, front auxiliary hydraulics, and power shift vs. manual transmission. As you know from tractors and combines, these features can have a big impact on final value.

Ask the dealer, auctioneer, and (if possible) previous owner about the backhoe’s use. This can tip you off as to what working parts may need a closer inspection for stress cracks, broken welds, and twisted frame members (particularly those of the loader and the mast’s boom and stick). Be sure to look closely at the torque tubes that connect the loader arms to check for cracks and overall condition — these components are subjected to a lot of twisting movement. 

Position the machine on a flat concrete surface and see if the mast’s bucket sits level (provided all tires are properly inflated). Uneven bucket position could be caused by a twisted boom or stick. 

Also examine both buckets to determine if they have incurred excessive wear in their corners and flat cutting edges. A replacement front bucket can set you back $4,000 to $7,000.

Run the backhoe and operate all its working parts. Drive it around to detect potential problems with the transmission. 

Operate the hydraulics both to determine responsiveness and note if there are operating noises. 

Leaving the loader or mast in the air, shut the backhoe off and see if these appendages lose height, which could indicate an internal bypass in the cylinders.

Finish your inspection of the hydraulic system by examining all hoses for leaks, excessive wear, or cuts, as well as all cylinders for leaks and damage. Check the dip stick in the hydraulic fluid tank for water.

Look around the ROPS or cab to get a feeling for how the machine was cared for during its use. Look at the machine’s skin to see if rust is developing. This could be an indication it was used in a chemical or salty location. 

Finish the inspection by looking at the rims and tires. On construction sites, backhoe tires run over varied surfaces that can contain damaging objects, so look at the sidewall for cuts, the lugs for missing chunks of rubber, and the rims for cracks and bends. 

Be sure to double-check that all the tire pairs are the same size. Finally, tap the air valve to see if air escapes. If not, you are dealing with foam-filled tires.