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MOUNTAINS OF MACHINERY

Successful Farming

November 2024

COMMODITY PRICES ARE LOW AND INTEREST RATES ARE HIGH. BUT AN OVERSUPPLY OF USED EQUIPMENT OFFERS OPPORTUNITIES.

The U.S. agriculture economy T in 2024 is facing an unusual combination of events, leading to an unpredictable machinery market. Despite this, farmers can still improve their equipment fleets if they know where to look. Options are available, and in some cases prices are approaching historic lows. Read the sidebar for three opinions on best buys as 2024 draws to a close.

"I think we're going to be in the middle of 2026 before we level out into a new normal," says Moving Iron podcast host Casey Seymour. "I'm anticipating a very active auction time frame through December where if you have the money, you're going to be able to get some bargains.

And I think that will hold true for the next two years." Farmers will have the opportunity to spend this year, , but probably on what they need, not what they want, says Andy Campbell, director of insights at Tractor Zoom. He believes the ag economy is entering a valley, not a "V."

"As "I don't think we'll hit bottom and then rebound back up," Campbell says farmers, we are exploring how we do things differently. I'm talking to farmers who are looking at ways to work more efficiently, because short of a 'black swan' event [a highly unusual occurrence], I think we're in a multi-year lower cycle."

Mark Stock, CEO of BigIron Auctions, says the auction market has always ebbed and flowed with interest rates and commodity prices. But this one could lead to a farmer exodus.

"We'll see the largest amount of people exiting agriculture in the next six years," he predicts.

"As the baby boomers retire, there's going to be a lot of machinery hitting the market." He already notes an uptick in the number of farmers looking to retire in 2025 because it's "just not any fun."

"When you go out and work all year, and realize you'd have been in better financial shape from cash-renting your ground, you think about why you'd want to lose equity at that stage of your career," Stock continues.