“We are currently running a little higher than we are comfortable with. We are heavier in large 2WD tractors and combines. We are currently taking measures to reduce that inventory to ensure we get ‘right sized’ sooner rather than later. We believe that rising interest rates and input costs have driven a decline in used equipment purchases and have made it more difficult in working a deal when a customer is replacing a unit that was at lower interest rates.”

—Thomas Sutter, LandPro Equipment, Avon, N.Y. 

“Our used equipment inventory is not high at all right now. However our new equipment inventory is high due to last year’s drought and a slow start to the season. Our spring selling window looks awfully small so far this year. Hopefully with more rain this summer we can make up for the slow start and get inventory levels to be more manageable.”

— Rick Bailes, Bill’s Tractor and Equipment, Adkins, Texas

“Looking at the market as a whole, the number of units are nearing pre-COVID levels. Combines are of great concern. Looking at interest rates and the price of equipment, I am not sure how fast these machines will move without some kind of one-off outside force in the market causing commodity prices to shoot up. I will need to know how I am going to sell machines before they come in and build a plan and stick to that plan.”

— Casey Seymour, 21st Century Equipment, Scottsbluff, Neb.

“The problem with the incoming inventory is the 30% inflation that has occurred over the last 3 years. The market has not allowed us to improve our draws 30%, so the net effect is a 30% higher investment in used inventory. Pair that with 7% interest and waning demand from a shrinking customer base and the problem is large. Unit numbers don’t even need to be that high with these 2 factors to have a problem. Dealer consolidation has also had the unintended consequence of consolidating risk. The risk was actually better hedged when there were more dealer groups to spread the risk across.”

— Name withheld by request

“We are currently worried about our used inventory levels and are concerned that they may go even higher. This is a topic of high interest and discussion throughout our organization. We are working on a number of different initiatives to combat this issue such as sending items to auction, balancing our costs, creating sales programs and SPIFs and talking to our sales staff about the issue. As we work through those plans and others, we are striving to reduce our inventory and get it to a level that we can maintain and feel comfortable with.”

— Kyle Schneider, Stotz Equipment, Salt Lake City, Utah

“Our used inventory of larger equipment has increased marginally. It is slightly higher than in recent years, which makes it seem like we are carrying too much used equipment. We are not at the point of concern, as good used equipment is still selling well, but we have to monitor some of the used equipment that is carrying an inflated allowance and retail price, if prices continue to soften in certain areas.”

— Zach Gooder, Koshatka Equipment Inc., Protivin, Iowa

“Used equipment inventory is a necessary evil of a successful farm equipment dealership. We’ve seen equipment levels fluctuate over the last 3 years and currently have moderate levels of field-ready equipment on our lot. We’ve adjusted our trade-in policies to manage our inventory levels and moved pre-owned equipment to the next customer as efficiently as possible. With national used inventory levels rising and the same market starting to lose some value, we will continue to adjust our policies to ensure we are managing an appropriate amount of inventory as well as the quality of inventory needed for used equipment buyers.”

— Matt Proffitt, West Hills Tractor, Jonesborough, Tenn.

“Currently our used inventory is at a good level. I am concerned about the swing the other way, and we have been very diligent to not let levels get too high and plan to keep inventory at these lower levels moving forward. We have been very up front with the sales staff that if they can’t sell the used equipment, we will stop selling new equipment to maintain the correct inventory. I lived through 2012-2014 and do not want to relive that!”

— Pat McCrabb, J.J. Nichting  Co., Pilot Grove, Iowa