The first signs of an excess build-up of used farm machinery began to emerge nearly 4 years ago. According to the results of Ag Equipment Intelligence’s Dealer Sentiments & Business Conditions survey, the last time North American dealers reported that their inventories of used equipment were “too low” was in May 2012. Since then, dealers have consistently reported that the backlogs of used wholegoods on their lots are “too high.”

By early 2015, more than one half of dealers reported their used equipment inventories were “too high.” The net 44% of dealers reporting excessive used machinery backlogs in February of last year was the highest in our survey history, which goes back to May 2011.

On the other hand, up until July 2013, dealers were reporting that their new equipment inventory was “too low,” which facilitated the sale of newer, low-hour used equipment. Every month since September 2013, dealers reported new equipment inventories as “too high,” and has consistently worsened since that time. By September 2015, 53% of dealers were reporting that new equipment inventories were “too high.”

New Equipment Inventories

Used Combine Inventories

Used Equipment Inventories

Used Tractor Pricing Trends