Market Reports: March 2024 Planter Auction Values Drop While Late-Model Farm Equipment Inventory Growth Continues

Planter Auction Values Drop While Late-Model Farm Equipment Inventory Growth Continues

LINCOLN, Nebraska —April 5, 2024

Over the past year, Sandhills Global has noted a significant increase in late-model used farm equipment inventory levels in Sandhills marketplaces. At the same time, newer equipment has become more prevalent as manufacturers have returned to normal production levels following the resolution of numerous supply chain issues. Sandhills has monitored similar trends in the construction and transportation markets as well.

“We’ve observed a huge decrease in the auction value of planters month over month,” says TractorHouse Sales Manager Ryan Dolezal. “Some late-model units have been selling at auction for 10 to 20 percent less than what they were a month ago. Given the auction values observed over the past month, buyers and sellers should be prepared for asking values to follow a similar path.”

The key metric used in all of Sandhills’ market reports is the Sandhills Equipment Value Index (EVI). Buyers and sellers can use the information in the Sandhills EVI to monitor equipment markets and maximize returns on acquisition, liquidation, and related business decisions. The Sandhills EVI data include equipment available in auction and retail markets as well as model-year equipment actively in use.

Additional Market Report Takeaways

Sandhills market reports highlight the most significant changes in Sandhills’ used heavy-duty truck, semitrailer, farm machinery, and construction equipment markets. Key points from the current reports are listed below. Full reports are available upon request.

U.S. Used Planters

• Planter inventory levels have begun trending sideways with only marginal month-over-month changes; levels decreased just 0.24% M/M in March. However, inventory levels are still elevated compared to March 2023, up 41.66% year over year, which has exerted a downward pressure on values.
• Asking values decreased 2.57% M/M, increased 6.43% YOY, and are beginning to trend lower.
• Auction values have fallen at a higher rate than asking values. There is a 70% spread between asking and auction EVI; an EVI spread this high has not been observed since May 2015. Following consecutive months of decreases, auction values dropped 16.1% M/M and 15.45% YOY in March.

U.S. Used Combines

• Used combine inventory levels showed a modest M/M increase of 1.72% in March after consistently rising for several months, now standing at 17.28% above the previous year’s figures. These steady inventory increases have led to falling auction values.
• Asking values remained steady in March, down slightly by 0.29% M/M, up 7.9% YOY, and trending sideways. With auction values falling, however, Sandhills anticipates asking values will fall as well.
• Auction values decreased 3.56% M/M and 2.14% YOY and are beginning to trend lower.

U.S. Used Tractors 100 Horsepower and Greater

• Inventory levels in this category rose 2.5% M/M and 53.61% YOY. Significantly high inventory levels have put downward pressure on values for several months. If the current trends persist, values will drop further.
• Asking values experienced a modest decrease of 0.76% M/M in March but remained higher YOY, at 5.11%. Asking values are trending sideways.
• Auction values decreased 2.57% M/M and 0.71% YOY in response to high inventory levels. Auction values are trending sideways.?

U.S. Used Compact and Utility Tractors

• Inventory levels of used compact and utility tractors in Sandhills’ U.S. marketplaces continued a downward trend that started in January, decreasing by 3.75% M/M. However, inventory levels continue to be higher than last year’s figures, up 17.66% YOY in March, and are trending sideways.
• Asking values showed a slight decrease of 0.77% in March after several months of decreases. Asking values were down 2.37% YOY.
• Auction values declined 1.37% M/M and 3.97% YOY and are trending down.

U.S. Used Heavy-Duty Trucks

• Inventory increases of 7.19% M/M and 14.38% YOY were observed in this category, which includes day cabs and sleeper trucks. Inventory levels are trending sideways.
• Asking values inched up by 0.61% M/M in March but dropped 16.49% YOY and are trending down.
• Auction values displayed a similar pattern, posting a 0.83% M/M increase and a 19.47% YOY drop. Like asking values in this category, auction values are trending down.

U.S. Used Semitrailers

• Inventory levels of used semitrailers rose 5.07% M/M and 44.83% YOY, suggesting a growing surplus.
• Reflecting declines in auction values, asking values fell 1.33% M/M and 21.94% YOY in March following consecutive months of decreases.
• Auction values have posted M/M decreases in recent months as well. Auction values were down 2% M/M and 22.88% YOY in March.

U.S. Used Medium-Duty Trucks

• Inventory levels of used medium-duty trucks continue to rise, putting pressure on asking and auction values. Inventory levels were up 13.88% M/M and 37.46% YOY in March.
• Although asking and auction values have posted monthly increases, these values are still trending down and are lower than last year’s values. Asking values were up 2.31% M/M and down 12.62% in March.
• Auction values increased 1.19% M/M and decreased 12.37% YOY.

U.S. Used Heavy-Duty Construction Equipment

• Inventory levels in this category rose 2.43% M/M in March, marking a trend of consistent increases, and are notably higher YOY with a 15.59% rise.?
• Asking values showed a marginal decrease of 0.71% M/M and were 2.4% lower YOY. Asking values are trending sideways.
• Auction values, which are also trending sideways, decreased 2.36% M/M and 8.95% YOY in March.

U.S. Used Medium-Duty Construction Equipment

• Inventory levels of medium-duty construction equipment continued an upward trend, posting a 1.33% M/M increase in March and a substantial 55.33% YOY rise, indicating a significant accumulation of stock. The skid steer and mini excavator categories have experienced the largest changes in inventory levels, asking values, and auction values.?
• Asking values decreased 0.35% M/M and are trending sideways. However, asking values are 6.03% lower than last year.
• Auction values ticked up slightly at 0.17% M/M, fell 9.67% YOY, and are currently trending sideways.?

U.S. Used Lifts

• Used lift inventory levels were up 2.18% M/M and 8.36% YOY in March. This category is exhibiting an upward trend, driven largely by increases in telehandler inventory.?
• Asking values decreased 2.46% M/M and 6.74% YOY and are trending down.

• Auction values decreased 2.44% M/M and 13.91% YOY and are trending down. Combined, these inventory and value metrics indicate a market with growing supply but waning demand and value.

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For more information, or to receive detailed analysis from Sandhills Global, contact us at [email protected].

About the Sandhills Equipment Value Index

The Sandhills Equipment Value Index (EVI) is a principal gauge of the estimated market values of used assets—both currently and over time—across the construction, agricultural, and commercial trucking industries represented by Sandhills Global marketplaces, including AuctionTime.com, TractorHouse.com, MachineryTrader.com, TruckPaper.com, and other industry-specific equipment platforms. Powered by FleetEvaluator, Sandhills’ proprietary asset valuation tool, Sandhills EVI provides useful insights into the ever-changing supply-and-demand conditions for each industry.