Vertical tillage equipment sales numbers climb

The hottest ticket in tillage equipment sales these days is vertical tillage (VT). Thanks to its rapid and widespread adoption, sales of VT implements are poised to overtake tandem discs by the end of this decade.

The appeal of VT extends beyond this practice’s initial attraction of offering higher tillage speeds while providing minimal soil exposure.

The tillage tool’s basic design has diversified so that you can order machines to suit your specific situation. For example, you can do deeper tillage or downsize residue even further.

With increased popularity comes the windfall of greater numbers of used machines on the market, particularly 2021 and 2022 models.

While the numbers of used VT machines are still relatively low (due to the shortage of new machines the past couple of years), what is striking about the adoption of this tillage practice is that there are as many used VTs from the 2021 and 2022 model years as there are from the previous eight years.

While availability is improving, demand for late-model VT implements is strong, which is pouring a concrete floor on prices. Auction bids will remain high and dealers won’t be looking to discount sales for the remainder of this year and all of 2024.

The other major change in VT machines is that late-model machines have many more accessories and options. A good example of this is the Case IH 335 and 435 VTs, which are sold with three different wavy blade types, ranging from a standard 20-inch blade up to a 22-inch Barracuda blade.

John Deere’s 2633VT is equipped to allow the implemented front and rear gang angles to be adjusted independently. This lets users set working angles to be more aggressive and chop residue in the fall, then dial back those angles in the spring to leave a smooth seedbed.

This feature, which is becoming more common with other VT machines, can be combined with a growing list of finishing attachments to make the tillage tool more adaptable.

Such attachments range from simple coil tine harrows to double gangs of rolling baskets.

This diversification makes it crucial for buyers to identify the options they want before making an auction bid or a dealer offer.

Retained value award winners

EquipmentWatch, an analysis firm for the heavy equipment industry, announced the winners of its Highest Retained Value Awards. The award recognizes manufacturers in 30 equipment categories spanning the construction, agricultural, and lift-manufacturing sectors, identifying products that show the highest retained values over the past five years.

Residual values are calculated according to market depreciation standards and proprietary algorithms, as well as market prices and forced liquidation value accumulated by EquipmentWatch. Retained values represent what you can anticipate a piece of equipment will be worth after a given period of time.

Here are the highest retained value rankings by equipment type.

• Tracked tractors: John Deere had a 67.3% five-year residual value, which was substantially higher than the category average of 57.9%.
• Balers: Kubota had a 75.8% five-year residual value in this category.
• Combines: New Holland had a 72.0% five-year residual value.
• Self-propelled sprayers: Hagie had a 69.5% five-year residual value.
• Small wheel tractors: Kubota had a 76.6% five-year residual value.
• Large wheel tractors: New Holland had a 76.8% five-year residual value.
• Medium wheel loaders: Case had a 80.4% five-year residual value, which was significantly higher than the 60.9% average.
• Large skid-steer loaders: ASV had a 76.0% five-year residual value.
• Telehandler lift trucks: JCB had a 71.2% five-year residual value.

After 20 to 25 years, the value for discs flattens and holds steady

About the time a piece of machinery reaches 20 to 25 years of age, the steady depreciation of its value pauses for a while. Provided the machine has been previously well cared for, a tractor, combine, or even tillage equipment holds its value for the next decade or longer, depending on its use (hours, acres covered, and overall condition).

I first noticed this phenomenon when researching the availability of older combines. The recent severe shortage of new machines had driven buyers to the used market, and I started to see 10- to 20-year-old combines bringing in more money. Wondering if this trend was impacting even older harvesters, I looked into auction sales of 20-year-old combines and discovered their values held steady as they continue to age.

Some well-maintained and low-usage (for their age) harvesters were bringing 15% to 20% more (thanks to the combine shortage) than sales of similar combines in 2019 and 2020, but the rule of “steady as she goes” when it comes to values holds true.

I looked into recent sales of older discs (built from 1998 to 2003), specifically the Case IH 496 and John Deere 637. Both models were then mainstays of their maker’s tillage lines.

That search confirmed the sale values of such implements held steady, particularly if they were in the 20- to 25-foot working width range.

Discs of this size often sell for the same prices if not more than wider implements of the same age. Driving this trend may be that smaller discs are highly sought after by small and hobby farms.

For the Deere 637, prices were steady with sales of $18,000 to $23,000. Case IH 496s often sold for $11,500 to $20,900.

Learn more

This price guide breaks down dealer asking prices on 2021 vertical tillage implements.