One of the last measures taken by the 113th United States Congress before its term came to an end was the approval of the Tax Extenders Bill, which restored or extended a number of tax incentives, including one on used agriculture equipment. Industry insiders say this is one of the reasons for a rebound in the value of this equipment, which has been increasing recently after a few months of trending downward.
Between August and October, prices at auction for used late-model combines and tractors fell as much as 25 percent, but that trend appears to have reversed since then. Another driving factor is that prices for new equipment have risen on average 4 percent every year for the past decade.
The value of used machinery is difficult to predict because it depends on several changeable factors, ranging from production and prices of new machinery to farm income, interest rates and the aforementioned tax breaks. Because of this, Greg Peterson, who has been tracking auction prices for 25 years, recommends that owners take good care of their equipment in order to maximize their return when it comes time to sell.
"Shed it, keep meticulous records, because our data shows that when you do that, at the end of the rainbow, on the other side, the used values will be surprisingly high," he said to The Forum of Fargo-Moorhead. "But you have to take great care of it."
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The value of used harvesters and other agriculture equipment is on the rise.