Demand was strong for tractors, combines and sprayers throughout the spring period, according to a report from Steffes Group. During the first four months of 2020, the company conducted 170 auctions.
“This was the first time in the 60-year history of our company we couldn’t conduct live auctions," said President Scott Steffes. However, the company has conducted online-only auctions for 11 years.
Steffes said buyers are looking for well-maintained equipment.
“The market is discriminating," he said. "Well-maintained equipment with low hours commanded a strong premium. We sold the highest priced tractor in the history of our company this spring, a late model John Deere RX.”
Even older machines did well in many cases. “Most surprising was sharp rises in tractors 15 years and older, showing great care, good tires and a pedigree,” according to the report.
Land has been strong, but with some weak spots. “Buyers have shown up and sales have been impressive and yet we’re starting to see, perhaps, a little chinking in what has been exceptionally strong armor. It probably reflects more of a hesitation in a consistently rising market and we’ve only seen it in areas where weather has greatly affected crop production. Premium land still commands premium prices in all our markets,” according to the report.
Land values continue to benefit from historically low interest rates, the report noted.
Steffes Group provides services throughout the Upper Midwest, including Iowa, North Dakota, South Dakota, Minnesota, Wisconsin, Montana, Illinois and Nebraska.