In 2024, the auction landscape for row crop tractors witnessed a remarkable upswing in the availability of used inventory. Brands such as John Deere, Case IH, and Fendt played significant roles in this trend. The increased supply led to a flurry of auction activity and exerted downward pressure on prices. Currently, the used row crop tractor market has returned to pre-covid levels, with a majority of units being late-model and low-hour tractors.

Oversupply and Declining Prices

John Deere, a longstanding powerhouse in the row crop tractor market, saw a notable increase in the number of used tractors entering the inventory, especially the 8R 370. This influx created intense competition among sellers, resulting in lower retail prices and more competitive financing options. As the market became saturated with used John Deere tractors, an uptick in auction activity was on the horizon. With most dealers concentrating on other segments, the used inventory of row crop tractors became manageable. In 2025, the focus will shift towards the surplus of row crop tractors on dealer lots. The overabundance of used tractors weakened their value, as there were simply too many machines vying for a share of the market.Case IH also experienced a rise in the number of used tractors available on dealer lots. The sharp increase intensified competition among sellers, driving prices down and accompanied by low-rate finance offers. Tractors that once commanded higher prices now had to compete with an ever-growing pool of similar machines. Even relatively new models saw price reductions compared to previous years. The increased supply shifted the market in favor of buyers, where prices were determined by the growing inventory rather than the demand for premium models.Fendt, although rare in the U.S. auction market, faced its own set of challenges in 2024. Due to its limited presence in the U.S. row crop tractor market, Fendt tractors are seldom found in auctions. When they do appear, they often command a premium due to their scarcity. They remain a niche product, and their prices are often driven by specialized interest rather than broad demand, making their auction prices less predictable. However, the limited availability means that those who do purchase them are often willing to pay a premium.

2025 and Beyond: Increased Auction Activity

Looking ahead, it is expected that the trend of increased used tractor inventory will persist into 2025 and 2026. The surge in supply is likely to lead to a further increase in auction activity as more sellers seek to offload their machines. However, this rise in auction frequency will likely be accompanied by lower prices across the board. As more tractors enter the market, the competition among sellers will intensify, meaning that prices will continue to face downward pressure.This trend towards oversupply is expected to benefit buyers, who will have a wider range of options at lower prices. However, it poses challenges for sellers, who will find it increasingly difficult to obtain premium prices for their used equipment. Auction markets are likely to become more crowded, and while activity will increase, sellers will need to adjust their expectations for the value of their equipment.In conclusion, the auction market for row crop tractors in 2024 was significantly influenced by the sharp rise in used inventory. John Deere and Case IH both witnessed an influx of machines, leading to increased auction activity but also a decline in prices due to oversupply. While Fendt tractors remain rare in auctions, their high prices and limited availability still attract the interest of a niche market. As we move into 2025 and 2026, it is expected that this trend of growing used tractor inventories will continue, resulting in more auction activity but also increased competition and lower prices. Buyers will have more choices, while sellers will face greater difficulties in achieving higher prices for their equipment.For more information about used equipment, listen to my episodes on the Successful Farming podcast on the last Monday of each month. Aaron Fintel and I delve into current market conditions and the factors driving used equipment. Please tune in to the Moving Iron podcast, where I track the economic drivers of the farm equipment business, and visit movingironllc.com for everything related to Moving Iron.