Used planter inventory is the highest it’s been since 2017

The used planter market has gone through some notable changes in the past two years that impact price and availability. From 2014 to 2022, the market experienced a highwater mark in inventory and the consequent sell off over the next 3 years. On Dec. 1, 2014, tractorhouse.com had 8,538 planters listed. Fast forward to July 1, 2022, where there were a total of 2,919 planters listed. Since 2014, 66% of the used planter inventory has been sold off. 

It wasn’t until supply chain issues arose during COVID-19 that used planters started to see a dip in inventory numbers. Producers had more on-farm-income and were ready to upgrade their equipment, especially planters. From the low point of July 2022 to today, the number of planters increased by 212% to current levels of 6,189 listed. The following chart shows the breakout of auction to retail pricing. Pay special attention to the “Percentage of Retail to Auction Pricing” column. When I worked at a dealership, this was the number I watched the closest.   

Buying from a dealer vs. buying from an auction

There are differences between buying a used piece of equipment from a dealership and buying from an auction. The most significant reason is if the machine fails, more than likely the dealership is going to provide a level of customer service an auction company will not. Dealerships also have the ability to offer extended warranties and, in some cases, special financing rates, like dealerships are doing today. If the buyer has one, the dealers will also take in a trade. 

In my experience, when the percentage between retail and auction values exceeds 120%, buyers start to look at auctions not only to buy, but also to establish the market value of used equipment. 

History repeats itself

This is the same outcome I saw in 2017. From 2014 to 2017, used planters sold off at auctions in much greater volume than the retail dealer market. The percentages looked the same then as they do today. Once planter sales outweighed the auction market and used volume normalized compared to new sales, the percentages came back in line and the market recovered.

Today’s market is no different. Like 2014, the market has become saturated. The biggest difference is the bulk of the used planters are 1- to 5-year-old machines. Because of delays from manufacturers, the overwhelming majority of planters were traded in 2022 and 2023. The chart shows July 1 inventory levels for each year since 2017. 

What options are available? This is a good time to take stock of what you have: What level of technology do you own? If your planter has technology you are happy with, then repair what you have. If you want to upgrade your technology, it’s a good time to consider retrofit and precision upgrade kits, because the used planter market has repriced the current inventories, which also affects the value of your planter. This is also a great time to have a conversation with your dealer about what they have on their lots and how your used planter could fit into their used equipment portfolio. Sellers are looking to make a deal and buyers are looking for deals.

For more on used equipment, listen to my episodes on the Successful Farming podcast on the last Monday of each month. 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.