Inventory of Used Tractors Climbed Up in February

In February 2023, inventory levels for used tractors across all categories continued to increase in Sandhills Global marketplaces. This trend reflects a long-term recovery in inventory levels that began in the second quarter of 2022 as the constraints related to pandemic-related farm equipment production and supply chain began to ease. The growth in inventory levels was observed in all categories of used tractors, including under-100-horsepower compact and utility tractors, as well as 300-and-greater-HP tractors.

According to Sales Manager Mitch Helman, the year-over-year gains in inventory levels are outpacing seasonal effects. Mitch advises farm equipment sellers to keep an eye on changing trends as buyers enter the market this spring. The Sandhills Equipment Value Index (EVI) is the key metric used in all of Sandhills’ market reports, which buyers and sellers can use to monitor equipment markets and make informed decisions about acquisition, liquidation, and related business matters. The Sandhills EVI data includes equipment available in auction and retail markets, as well as model year equipment actively in use. Sandhills introduced version enhancements and weighted adjustments effective with the January 2023 EVI. As a result, all historic EVI metrics were amended and recalculated back to 2005, and all calendar year 2023 EVI releases will include these enhancements.

In addition, Sandhills market reports highlight significant changes in used farm machinery, heavy-duty truck, semitrailer, and construction equipment markets. These reports include detailed analysis and charts that help readers visualize the data. The newest reports examine year-over-year variance in detail, noting changes from February 2022 to February 2023 with a focus on inventory, asking value, and auction value trends.

Long Term Inventory Recovery Record Continues

The Sandhills market reports reveal that used farm equipment inventory, which includes 100 HP or greater tractors and combines, has been steadily climbing since the middle of 2022. In February 2023, farm equipment inventory levels rose by 2.78% month over month and 15.99% year over year. Despite the increase in inventory, asking values for used farm equipment remained strong during the extended inventory rebound, rising by 0.82% month over month and 11.11% year over year. In contrast, auction values for used farm equipment dropped by 0.42% month over month but increased by 8.96% year over year. Increases in year-over-year asking and auction values were driven by late-model combines and high-HP (300-and-greater-HP) tractors.

Used compact and utility tractors also experienced an increase in inventory levels in February 2023, rising by 1.58% from January and 80.58% year over year. While the inventory for compact and utility tractors continued to grow, asking value increases slowed, and auction values remained on par with last year. Asking values decreased by 0.23% month over month but increased by 6.33% year over year, trending upward. Auction values increased by 1.5% month over month and were nearly even (0.07%) year over year, trending sideways.

Inventory levels for used heavy-duty trucks increased by 4.76% month over month and 38.05% year over year in February 2023. However, the asking values for used heavy-duty trucks declined for the 10th consecutive month, dropping by 3.23% month over month and 10.42% year over year. Similarly, the downward auction value trend for used heavy-duty trucks that began in April 2022 continued in February 2023, with auction values decreasing by 3.22% month over month and 22.65% year over year.