Machinery Pete: Values Double In 15 Years

There’s no doubt everything costs more these days. For example, in 2001 (it seems like yesterday, doesn’t it), the highest auction price paid for a tractor was $136,000. The 2000 model John Deere 9400T with 582 hours and a warranty for another year sold at a farm auction in southeast Minnesota on Feb. 23, 2001.

Those were the good old days. DEF  and Tier IV weren’t even glints in our eyes yet. AOL internet connection speeds were glacially slow. I still have that dude’s “You’ve Got Mail!” voice stuck in my head.

Check out the data table showing the highest prices paid for tractors in each of the past 15 years. You can see prices have doubled, from the low $160,000 range to $340,000.

Something to note from the data table is the auction type. The $339,400 tractor sold via an online auction. That’s not surprising, considering nearly every on-site farm or consignment auction for the past decade or so has also included live online bidding. Look back to 2005 through 2009, and four of those five years the highest price occurred at a dealer auction, which is becoming increasingly rare.

The first time a tractor sold for $200,000 or more at auction was on Dec. 16, 2008. Imagine the coffee shop talk the next day!

It took a bit more than seven years for a tractor to top $300,000.

I guess we should probably start a Machinery Pete $400,000 tractor pool. Those interested can throw in $1 and guess the date we’ll see a tractor hit $400,000 at auction. The winner gets the whole pot. Who knows, there might just be enough money in the pool for the winner to buy a tire for that high-dollar tractor.

Or at least some more DEF.