You want harvesting equipment? But wait till you hear why producers are buying pre-owned equipment instead.
Prices for new farm equipment are at an all-time high. Self-propelled combines alone range from $400,000-$1,000,000+. At a time when producers are looking to utilize their capital spending budgets wisely, pouring that kind of money into equipment that can lose 30% of its value in a few years doesn’t make a lot of sense.
And that’s exactly why more producers are turning to quality second hand harvesting equipment.
These days there’s never been a better time to buy used.
What you’re going to learn:
- Why Pre-Owned Equipment Is Booming
- The Real Cost Savings Of Buying Used
- What To Look For In Second Hand Harvesting Equipment
- Where To Find Quality Pre-Owned Machinery
Why Pre-Owned Equipment Is Booming
Maybe you’ve noticed the uptick in interest around used farm equipment. It’s not a coincidence.
Prices for new equipment have continued to rise year after year. And as input costs soar and farm incomes decrease, that equipment is becoming cost prohibitive for many producers.
Farmers are feeling the squeeze:
USDA recently reported that net farm income dropped to $127.8 billion in 2024. That’s down 8.1% from previous estimates. When you consider that this is expected to be the third-lowest farm income level since 2000, it’s no surprise producers are tightening their belts.
Crop producers have been hit especially hard by this decline in income. Recently released data shows that soybean farm income dropped 44% between 2022 and 2024. Corn income declined 42% and wheat was down 43%.
Farm income this low has put many producers in a position where they need to cut costs wherever possible.
Enter pre-owned equipment.
Buying quality second hand harvesting equipment or attachments allows producers to significantly cut their equipment costs. Whether they purchase a combine for sale from their local dealer or a used tractor at auction, buying used allows producers to allocate more of their budget to other resources they need.
The Real Cost Savings Of Buying Used
Money talks.
Any farmer will tell you that depreciation is the number one killer of farm equipment values. Simply put, new farm machinery loses up to 30% of its value as soon as it leaves the dealership.
Take that same piece of equipment a few years down the road and that value has plummeted by nearly half.
But when you buy used…
You get top-dollar equipment at a huge discount. That also means lower insurance rates, cheaper financing options, and proof the equipment works.
For example, a new John Deere S780 or Case IH STEER combine will set you back anywhere from $700,000-$1,000,000+. Some of the bigger, more tech-forward models are even pushing past $950,000.
Now look at used combines…
With a pre-owned combine you can find quality machines in the $100,000-$350,000 range. That’s 50-70% cheaper than buying new.
And while used tractors and equipment won’t come with that brand new shine to them, they do come with one major benefit; they’ve already been “depreciated” by the previous owner.
That means prices on used equipment are much lower.
Producers who buy second hand harvesting equipment can also pass those savings on to other areas of their operation. Used equipment means:
- Less expensive insurance premiums
- Lower financing amounts (and monthly payments)
- Equipment that has already been “broken in”
Buyers aren’t the only ones who benefit from purchasing pre-owned equipment. Sellers can enjoy perks as well.
Why do you think more farmers are selling their used equipment instead of trading it in? Because they can sell it for much more cash than they could get from a dealer. That extra cash can be used for inputs, payroll, upgrades – whatever the farmer needs.
At the end of the day buying used equipment is a win-win for everyone involved.
What To Look For In Second Hand Harvesting Equipment
You wouldn’t buy a used car without test driving it first. The same thought process should go into buying pre-owned farming equipment.
While you may not be able to take that used John Deere 9630 tractor out for a spin, there are certain things you should look for before committing to any big purchases.
Hours:
The number one thing to look for when buying any used farm equipment is hours. Combine? Look for less than 2,500 hours on the separator. Tractor? Annual cash rents have increased 5%+ every year for the past decade. For most makes and models, you’ll want somewhere around 2,000 hours or less.
Don’t let something like hours scare you away from a piece of equipment though. If the hours are high, look for impeccable maintenance records.
Maintenance history:
This ties directly into hours on a machine. Used equipment with higher hours should come with service records that show the equipment was properly maintained. If there’s no record of maintenance, walk away.
Look for things like:
- Recent engine work
- Air filters replaced
- Fluid levels checked
Anything that can validate the equipment was properly cared for during its previous life.
Overall condition:
This is pretty straightforward. You should always inspect the equipment in person before buying it. No exception.
Are there any cracks in the frame? How worn down are the tires? Does the machine turn on? These are all things you should learn about the equipment before throwing down your hard-earned money.
Keep in mind that when you buy from a dealer, those machines have likely already been inspected, serviced, and certified. When you buy private party you are taking that risk on yourself.
Where To Find Quality Pre-Owned Machinery
Buying used harvesting equipment is one of the best financial decisions a producer can make. But how do you know where to find the right equipment?
While you can purchase pre-owned equipment from private party sales, there are a few better places to look.
Local dealers: These guys have a lot of used equipment. Dealers typically only sell equipment that has been inspected and serviced. Plus, they offer things like financing options and (sometimes) limited warranties.
Auctions: Buying equipment at auction is becoming more and more common. There are definitely some great deals to be had at auction, but there’s also more risk involved. A lot of auctions are “as-is, where-is” meaning you get what you pay for.
Online marketplaces: Online marketplaces have really taken off in recent years. These websites make it easy to search by make, model, price, location, and more. The only downside is that you have to take these sellers at their word. Ideally you should inspect the equipment in person before buying.
Tying It All Together
Buying pre-owned equipment is here to stay. Farmers and producers understand that buying new equipment doesn’t always make sense. Whether it’s a tractor, combine or planter… Pre-owned equipment is the new normal.
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