Buying and Selling Used Farm Equipment

Abstract
It’s impossible to farm without the right equipment, and that equipment doesn’t come cheap. But there
are alternatives to buying new, off the lot, at full retail price. There are bargains to be had.
Like used cars, there is a healthy market for used farm machinery. If you are looking to buy or sell, here
are some basics you should know.
i. Introduction
Farmers rely on their equipment to get the job done. With unpredictable weather and other factors
always bearing down on farmers, unreliable machinery can make farming close to impossible.
But finding reliable machinery does not mean buying brand new equipment at full price, not when the
market for used farm equipment is so healthy. This is good news for both interested buyers and sellers.
Still, whether you are looking to make a used farm equipment purchase or make some money from a
sale, there are a few things you should know before getting started.
ii.
Used Farm Equipment Market Outlook
Trends for used farm equipment suggest the market is strong.
Successful Farming reports that, according to dealer surveys, just shy of half (47%) of dealerships say
that they have too much used equipment inventory in stock. That trend has in fact decreased in recent
years. Dealer surveys from 2016 showed that almost 60% of dealers said their inventories were too high.

Still, Successful Farming’s late-model tractors analysis suggests there are some tractors of specific sizes
that buyers can easily locate, specifically high-horsepower, front-wheel-drive models. There is also a
strong market for 10 to 20-year-old models that are in good condition and low hours of use.
Good deals on used combines currently exist, too, the magazine notes. Auction prices may commonly be
found near the $150,000 mark – lower still in some circumstances, specifically for models from 2014 to
2016.
Other machinery the magazine notes can be found at fairly good prices include semitractors and hopper
bottom trailers.
Trade war has had an effect on sales
It should be noted that recent trade war decisions between the U.S. and other competing economies
has had a negative effect on both new and used tractor sales thanks to effects felt through commodity
and livestock prices.
However, Successful Farming advises that dealers may use this as an opportunity to offer deals and
reduce their inventories. So, it’s best to keep an eye out.
Know what the equipment is worth
Farmers interested in selling their equipment may find it is a challenge to accurately put a price on their
equipment. Luckily, there are a variety of sources that, when combined, can give both sellers and buyers
doing their research a solid price point.

According to equipment-pricing analyst Paul Hendrix, buying used equipment at a good price all comes
down to experience.
Hendrix shared with Farm Industry News what to look for in determining whether equipment is set at a
fair price.
What features does the equipment have that you need?
Hendrix advises buyers to know whether the machinery has all the features a farmer needs. Even one
missing needed feature can turn a sale into a bad deal.
Does the equipment have popular features?
Maybe you don’t need the latest and greatest popular feature in your equipment. However, Hendrix
says, if the price is right, then investing in a piece of equipment with those features could pay off if you
may look to resell in the future.
What is similar machinery selling for?
Here is a great tip for both buyers and sellers: You have to know the market value from the last few
months of similar equipment, both of the same brand and that of different brands. Hendrix
recommends heading to the internet to look up comparable sales.
What condition is the equipment in?
Obviously, machinery that is in excellent condition can be sold for a higher price than similar equipment
that maybe has most of its better days behind it. It is always a good idea to have a professional perform
an inspection to know for sure the condition.

Don’t forget to take a look at onboard electronics, too. Anything that’s not upgradeable or not current in
an older model can take down a price.
Do local dealers offer support on the equipment brand?
For buyers – and sellers who want to do a little extra homework – make sure you know whether local
dealers offer support on the brand of equipment. As Hendrix warns, you do not want to be caught
having to travel 100 miles or more to get parts for the equipment.
Get a leg up on other sellers with better marketing
For sellers who are looking for advantages over others who may be trying to move used equipment,
there are plenty of great marketing strategies that can apply well to used farm machinery.
Writing for AgWeb, Greg Peterson shares that the first thing sellers should do is to personalize what
they are selling – and there are several ways that they can do this.
His first tip is for auction firms who may be helping sellers with their used equipment. Really, though, it
could apply for anyone who wants to advertise farm machinery.
Sale bills
Peterson recommends personalizing the sale bill by adding photos of the family or their farmland and
then telling more of the family’s story in that text, such as who they are, their history with the land and
why they are selling, etc.
Videos

He also recommends creating videos that share the same messages. Peterson notes that video
uploading and sharing services, such as YouTube, are free. With videos, buyers can hear directly from
sellers, adding an even more personal touch to the already personalized information.
We will also add that using video services like YouTube makes for an incredibly easy way to share the
videos to other platforms, such as listing websites and social media platforms.
Classifieds
Classified ads can be easily personalized up front, Peterson writes, by stating first whether the seller is
the original, second, third, etc. owner of a piece of equipment. Get the needed specifications in the
classified, then end with a more personal note again connecting the seller to the equipment. Consider
stating how well the equipment performed for you.
Finally, if an option, Peterson recommends submitting a picture of both the equipment and seller in the
classified to add an even deeper personal touch.
iii.
The Key to Profitably Buying and Selling Used Equipment
Shortline machinery dealer Big Equipment in West Havre, Mont., is profiting from buying and selling
used equipment, which amounts to 75% of the dealership’s total revenue, in a time when many dealers
are struggling to move used equipment off their lots. But Ron Harmon, owner, says there’s a key
difference to the way Big Equipment buys used equipment that sets the dealership apart from many
other major line equipment dealers.
“The average age of a piece of used equipment on my lot is well over 20 years old,” he says. “I have a
few pieces that are about 5 years old, but I’m not the guy who makes deals with customers to trade in
their 3 year old combines every other year for a low ball figure.”

Big Equipment sells new shortline machinery from Versatile, Westfield, Rhino, Pillar, SeedMaster, Ezee-
On and J&M equipment, and Harmon says he pushes customers to make trades when purchasing new
equipment to help build up his inventory of older, high hour used equipment.
“The best margins I make at Big Equipment are on taking in good, clean used equipment, upgrading it,
fixing it up and reselling it,” he says. “I would have to sell a lot of new equipment to generate the same
margins as I can generate on used equipment.”
Upgrading Used Equipment
When Big Equipment takes on a piece of used equipment, it is inspected, serviced and repaired until it is
once again in top shape. The dealership takes in old equipment, averaging between 20-30 years old,
with good quality engines and transmissions and updates the hydraulics, electronics and adds in GPS
and new wiring to increase the value of the machine. In some cases, Harmon says that with a $10,000
investment in upgrades, he can get more than double the book value of certain equipment.
Big Equipment also offers full rebuilds of 20-30 year old equipment by request, involving a complete
makeover of the engine, transmission, axels and cab. Harmon says after this work, he can sell certain
models of tractors for more as a rebuilt tractor 30 years later than what it sold for new.
“These things aren’t cheap, and we don’t advertise for this business. It’s strictly word of mouth. But I
prove that these tractors are just as reliable and robust 30 years later through quality rebuilds,” he says.
Not every 30 year old tractor has the same resellability, though. Harmon says it’s important to know
what equipment will resell well, as this determines the amount of time and money he invests in
upgrading and repairing it. There are certain brands and models of old tractors that he looks for, such as
the Steiger Tiger tractors or the Big Bud tractors Harmon used to manufacture. For knowing what brands
and models to target, Harmon says it’s necessary to do some research and find which tractors were
originally built with high quality parts, as well as which brands and models weren’t.

Furthermore, Harmon says dealers interested in this business need to know when an old piece of used
equipment is in too bad of shape to bother upgrading. If you’re going to end up sticking more money
into it than it will sell for, it isn’t worth the investment.
“If a customer wants to trade in an old tractor with known engine and transmission problems, I’ll still
trade with him. And I may still give him more money than the average dealer would, but I go into it with
my eyes open. I’m probably not going to spend the same amount of time and money rebuilding that
tractor because it has too many basic problems. We have our favorite used pieces, but we are not
prevented from considering other equipment. You just have to be smart about what you buy and how
much money you put into it,” he explains.
Why Buy Used Equipment?
Why would a customer choose an old tractor over a new one? Harmon says many of his customers
appreciate the old used tractors for their simple technology.
“For example,” Harmon says, “Almost all Tier 4 engines today have DEF fluid, except for Versatile
equipment. This is not only a nuisance, but it costs money. So why do engines use DEF fluid? Because
many of these machines have small cubic inch engines from 11-13 liters. At Big Equipment, we use a 15-
liter engine with no DEF fluid. It has regeneration, but not the DEF fluid.
“I sell customers on this with the fact that with, for instance, a 19-liter motor with the torque down to
1,400 rpm, I can reduce the fuel consumption rate down by 25-30% less than most new tractors on the
market. DEF engines use fuel to burn off emissions to meet emissions standard. Older, larger cubic inch,
mechanical engines like those we use don’t do that,” he explains.
Once all of the tractor’s components have been checked, the electronics and hydraulics have been
updated and Harmon has explained the advantages of a mechanical engine, he says it’s not a tough sell
to convince customers to purchase used equipment.

Dangers of Rolling Equipment
“Low hour, high dollar used equipment inventory is the single biggest problem in the farm equipment
industry right now,” Harmon says. “There is so much over priced used equipment sitting in dealers’ lots
right now and they can’t move it. That comes home to roost when you add low commodity prices.”
Harmon says the key to Big Equipment’s success in buying and selling used equipment is that he won’t
take in a farmer’s brand new machine and sell him a new one for a low price every other year. In other
words, he doesn’t roll equipment.
“When we sell new equipment, we’re unwilling to take the 5-10% margin that other dealers have been
doing. Our margins are consistently much higher than that,” he says.
iv.
What are the Major Benefits of Buying Used Farm
Equipment?
When we talk about used farm equipment we can immediately imagine the beat-up form and condition
of the multiple tractors, combines, pickers, ploughs, etc. It is hard to picture them in perfect condition,
and you may want to avoid purchasing used farm equipment. Though there are various benefits of
buying used equipment, here we have mentioned ten of the best reasons to consider it:
1. Small and new projects in agriculture can save a great amount of money. A small farming
venture or a start-up farmer can cut a significant startup amount by opting used machinery.
Depending on the type and size of a farm, the investment can be reduced in almost any part,
from nut carts to ploughs, tillage equipment, heavy-duty tractors and reliable used gears.
2. Your moneylender may insist you to purchase used equipment with the funds. That is, again, a
way to cut the startup costs and make sure that your farm has the right machinery.

3. Buying used equipment is an affordable way to keep a spare machine on hand without any
interruption in your farming activities.
4. The lifetime of farm implements is predictable. All farm machinery have a fixed lifespan, which is
the number of hours it can be used before tiring out. By checking the used hours you can
reasonably estimate its cost.
5. Do you harvest seasonal items like peanuts? If yes then buying used farm equipment will reduce
your equipment expenses and many years of seasonal or low hour usage.
6. However, an old machine may not be that fuel-efficient, buying used farm machinery is a way to
reduce the scope of your overall carbon footprint. Investment in a brand new gear is not needed
and as many used machines are extremely eco-friendly.
7. You can get a piece of equipment from a known brand name for a greatly reduced cost. Buying
used equipment from a known brand will allow you to find its parts easily unlike the problems
associated with less-known brands as sometimes if they go out of business, it’s hard to find the
parts as well.
8. When it comes to comparing the performance of a new machine to an older model, it is not
strange to find a slight difference. Sometimes used farm machinery can give high-end
functionality at a reduced cost.
9. Just like car owners, many farmers in the USA also like to lease and upgrade every two to three
years. By a little research online, you can get a great deal and own well maintained and gently
used equipment at a great bargain.
10. Most of the used equipment owners allow a trial run of the bigger gear, but with the new
dealers may not be the chances.
These are some of the most valid reasons for seeking out used farm equipment to save your money
while offering excellent performance.

Tips for Buying Used Farm Equipment
Between that new tractor, accompanying implements, tires, and gadgets, buying farm equipment can
set anyone back a pretty penny. It’s no wonder many farmers turn to quality used equipmentrather than
throwing down everything on the latest models. You can save big when shopping used, but there are a
few extra precautions to take to ensure you get the equipment that’ll make your work easier and avoid
a lemon.
Here at Bayview Trucks & Equipment, we want to help our customers get the best deal on the
equipment they need. To get a good price, you’ll need to be on top of your game when it comes to
finding the right equipment in the right condition. In that spirit, we’ve put together this short guide with
some tips for buying used farm equipment. Read on for more information or head into one of our
locations in New Brunswick, where we proudly serve Nova Scotia and all of Atlantic Canada.
Find a Reputable Seller
Where you shop for used farm equipment is sometimes as important as the state of the equipment
itself. A disreputable dealer, questionable individual seller, or confounding internet listing might hold
promises of extremely inexpensive equipment, but it’s a gamble whenever you go for a steal over a deal.
It can be frustrating running into a seller who doesn’t have the right info, who isn’t familiar with the
equipment, or doesn’t plan to follow up or offer continued service.
This is why it’s always a good idea to start with local dealers who have good reputations and will be
around should the equipment take a turn for the worse. Public records and reviews can indicate just
how helpful and trustworthy a dealer is which can indicate how well they inspect their used inventory.
The better the reviews, the better your chances are of finding good equipment for your money. Auctions
are also a popular place to find used equipment, especially in this market, but you take a chance with
how good your price will be as you’ll be competing against buyers who may have more money to throw
around.

Do the Research
Figuring out exactly what you’re looking for can help you negotiate price and avoid emotional and
financial stress down the line. This is probably not going to be any different than shopping for new
equipment. Simply focus on the features, components, and specs that you know you’ll need for the
work you have in mind. One of the hidden benefits of buying used farm equipment is that enough time
has likely passed for other buyers to have picked apart the machines and found exactly what’s wrong or
lacking in each model year. This can help you narrow down your choice and avoid equipment that won’t
be right for you regardless of its used condition.
Once you have a piece of used farm equipment in your sights, you can use your research skills to verify
the seller’s claims and equipment integrity. Start by asking the seller for any pertinent information or
documentation. Get the PIN or VIN so you can check its official documentation against what the dealer
offers. Most financing companies do their own background check, so you’ll have that to back you up if
you intend to finance, but it’s still a good idea to do your own research.
Equipment Inspection
With any piece of used equipment, you’ll want to inspect and test used farm equipment before making
a purchase. If you don’t consider yourself experienced of knowledgeable enough to perform an
inspection and ensure a working piece of equipment, don’t hesitate to bring along someone who does.
That might be a friend, neighbor, or a worker who’ll be operating the equipment. They can serve as an
advisor and help you deal with sellers and dealers who might be using less-than-honest salesmanship.
Any structural or mechanical issues should be immediate red flags, and if they don’t match up with the
picture the seller painted for you take an extra spoonful of hesitation. No used price tag is low enough
to make buying junk equipment worth it. Check controls, tires, and components for wear and match the
general condition against operating hours. Be wary of equipment (especially tractors and combines)

with incomplete or otherwise lacking documentation. A good sign of quality used farm equipment is the
operation record that comes with it. Keep your own records of any transaction and, once you make your
purchase, of the tractor’s condition. If something should go wrong, it’ll be important to have solid
records to backup your claims.
With a few of these tips you should be well on your way to finding the used farm equipment you’ve
been dreaming about. You can save big when you do your research and shop with your friends at
Bayview Trucks & Equipment. If you’re after the best used farm equipment around, come by one of our
location in New Brunswick, where we’re proud to serve Nova Scotia and all of Atlantic Canada. Come in
today and let our team of courteous professionals answer all your questions and help you find what
you’re looking for.
Accessing Farm Equipment made easy with Farmease
Gazing at his farm field, Jeff Shepherd, a Dalhart Texas farmer looks anxious. His concern comes as a
surprise considering the good crop that stands tall in his farm. The problem is not the crop itself but the
harvesting process and the preparation for the next round of sowing that has to be done afterwards. It is
a laborious task to do without proper farm equipment that he cannot afford. A John Deere S680 model
could have made his work easier and wrapped up by the weekend. It would have taken only 40 hours to
finish. However, the costs are a bomb. Shelling out $284900, for a used one also seems a load. What
should he do??
And Jeff is not the only one. Robert in California wants to upgrade his farm machinery but, only if he
could sell his old tillage equipment. He is looking for buyers. Just like Jeff and Robert, there are several
farmers across America looking for affordable farm equipment or having spare equipment lying idle.

High costs – Blocking the growth of the Farm and the Farmer
Many farmers across the US experience difficult scenarios when it comes to farm equipment year after
year. The economic liability of buying farm machinery is far too much due to the steep prices and
seasonal utility. As a result, the exorbitant machinery costs sway many potential farmers away from the
business altogether while for others it is difficult to analyze where to use their capital effectively for
their growth. For several farmers who invest in the big budget machinery, it becomes a burden and
blockage for growth due to its inefficiency resulting from its periodic limited use.
Farmease – Virtual Market Place for Farm Equipment Rental
To help farmers deal with the issue of expensive farm machinery as well as utilize their existing assets
for extra revenue, here comes Farmease, a unique marketplace where farmers can rent equipment they
need saving money or rent out their idle machinery during off-season and earn a few extra bucks.
Available also on your mobile, Farmease offers a dynamic platform to access and rent farm machinery or
optimize the use of a huge stock of previously dormant farm equipment.
Bridging the accessibility to Farm Equipment Gap
According to the FCA Economic Report, Office of Regulatory Policy, Agricultural and Economic Policy
Team 2016, Farm equipment is the second largest asset for a farmer after farm real estate. Considering
the structure of US Agriculture, the maximum inventory of total farm equipment resides in the large
farms with large volume of production. As per the 2012 Ag census of the US farms, the large farms
numbering nearly 110,000 form just 5% of the total 2.1 million farms in the US. However, the average
equipment inventory per farm for these large farms is a whopping $1.1 million in contrast to the mere
$63,000 for the other 2 million US farms. Among them are many farmers who own machinery but at the
same time suffer from low margins and seasonal cash flow. The data is clearly indicative of the huge gap
between farmers in the US who have access to the necessary farm equipment and those who do not.
Read about Farm Mechanisation in the USA

Farmease comes as a solution to bridge the space between these two categories of farmers.
“Our goal is to help farmers speed up cultivation with access to modernistic farm implements without
pinching their pockets.”
Owners Paradise for Farm Equipment
Offering a simple and easy to use platform, equipment owners can put out their farm implements for
rent. Any farm equipment sitting idle in your backyard can become an earning member by few clicks. All
you have to do is put it on Farmease and instead of your farm equipment becoming obsolete with time,
you can squeeze out some dollars from it without any hassles and take out your maintenance costs or
more easily!!
Rental Hub for Farm Machinery
For farmers who cannot access high priced farm machinery, Farmease brings an easy solution to simply
rent such equipment, at the time of need and save loads of money. It gives you the advantage of renting
the latest equipment at a reasonable price without calling for huge investments.
Holding your back with Smart Tech
A blend of Smart Technology with ease and comfort, Farmease is a user friendly app, must for all farm
owners. Supported by a highly professional team of tech birdies with the heart of a farmer, they are well
versed with the needs of the agriculture industry. Offering all kinds of equipment options from
harvester, tractor, tillage, landscaping, seeding, crop protection and post-harvest equipment, Farmease
has your back at all times.

Get the best deals with 100% guarantee of quality and working condition. Find what you need at your
nearest location at the most reasonable price. Renting farm equipment could have never been easier.
So, wondering how did Farmease help Jeff and Robert. Well, logging on to Farmease App, Jeff got
connected with Jim at Spearman, who had the John Deree model Jeff wanted, and was paying 1%
annual interest and not using the machine for nearly two months a year. Jeff got his job done at a
reasonable price. Robert on the other hand made a neat $23,000 on his John Deree 980, 12.5m
cultivator by selling it to Dave. All of them got a great deal with the convenient and simple Farmease
App.
Conclusion
Establishing the value of used equipment for trade-in or asset-listing purposes is tricky business. A
banker will likely calculate the value by deducting 10% off the depreciation value. A dealer will compare
to recent sales for his or her expected return. Anything can happen at auction.
If establishing value for insurance purposes, beware undervaluation. Unless your policy is for full
replacement cost, you could end up trying to prove your machinery’s worth in the event of loss. A low
valuation will also hamper the equipment’s role as loan collateral.
Knowing and trusting the source of your information is crucial.
References

Jaime Elftman, March 2016 |farm-equipment.com | The Key to Profitably Buying and Selling Used
Equipment | Retrieved on 17.02.2020 from
https://www.farm-equipment.com/articles/12691-the-key-to-profitably-buying-and-selling-usedequipment
Sam Harper, May 2019 | advantagerealtyandlandmanagement.com | What you should know about
buying and selling used farm equipment | Retrieved on 17.02.2020 from
https://www.advantagerealtyandlandmanagement.com/2019/05/30/what-you-should-know-aboutbuying-and-selling-used-farm-equipment
Sarah John, Nov 2019 | medium.com | What are the Major Benefits of Buying Used Farm Equipment? |
Retrieved on 17.02.2020 from
https://medium.com/@sarahjohn99888/what-are-the-major-benefits-of-buying-used-farm-equipment-
2e593267848f
Aug 2018 | bayviewtrucks.com | Tips for Buying Used Farm Equipment | Retrieved on 17.02.2020 from
https://www.bayviewtrucks.com/blog/tips-for-buying-used-farm-equipment--5271
Julia Smith, January 2020| blog.farmease.app | Accessing Farm Equipment made easy with Farmease |
Retrieved on 17.02.2020 from
https://blog.farmease.app/accessing-farm-equipment-made-easy-with-farmease