Is it smart to trade in a tractor?

The prices of second-hand tractors are rising rapidly. The market for a 'no-nonsense' model without filters, catalysts, Adblue and complicated computers is growing. In extreme cases, you haven't even written anything off on a 20-year-old tractor.

It is not the first time that old tractors are bringing in a lot of money. 2015 wrote I'm already talking about this trend. Collectors will pay a lot to get their hands on a rare model. They are usually completely restored and put in mothballs. However, a new trend is visible in the sale of relatively young tractors; models from 20 to 30 years old with little fuss and a strong reputation.

Anyone interested in tractors can name the list. You will invariably find the John Deere 6910 and 7810 on it. Just like a good number of Fendt models: 512/514C, Favorit 800 and the first generation 900 Vario. Almost every tractor brand has built a series that is well known.

Electronics
More and more agricultural companies are turning against buying new tractors. On the one hand, this has to do with costs; a little tractor costs about a ton these days. The depreciation in the first years is therefore enormous. They are often not trouble-free. It is precisely the many electronics that are part of the problem. In addition to malfunctions, it entails extra work, hassle and costs. The solution is simple: buy a used model without all the fuss.

In the United States (US) this has been going on for some time; the smaller companies in particular prefer to rely on an older tractor. Used John Deere 50 and 55 series, or Case's Magnum's frequently cross the puddle back to the country where they were built. With RTK GPS on it, they can last for a long time. Every country has its preference. Germany for Fendt, John Deere and MB Trac, the United Kingdom (UK) for Ford and Massey Ferguson, France for Renault and Italy for Fiat.

contempt
The Netherlands is a strange duck, because there is no explicit link with 1 or 2 brands. For a long time it was mainly the hobbyists who paid big money for a popular youngtimer. Our country is still at the forefront in the application of GPS. We all love electronics very much. Yet here too the opinion is changing and a 20-year-old tractor is slowly being looked at with less contempt. You can still have a good day with that.

What helps are the amounts involved in used tractors. New models are very expensive and second-hand models are also participating in this increase. However, there are requirements for this: preferably a below-average hour, (very) good condition, many options and the right type. If you bought smartly 20 or 30 years ago and were frugal, you can now sell it for the new price at the time, or amounts that come close to that. This has happened several times recently, especially in the US and the UK. These tractors are becoming scarce, driving up prices.

Mega amounts
The British like to sell their tractors through public auctions. In mid-May, a restored County went under the hammer for no less than €110.500, excluding premium. That is a sought-after classic, but a silver Ford 7810 was also auctioned for almost €44.000. A TW-30 brought in more than €30.000.

Tractors fresh from the farm also do well. Another auction paid €32.000 for a 1455-year-old 31XL. A 7810 John Deere 2002 brought in nearly €59.000, €8.000 more than the owner paid for it at the time. A much newer 6430 (year 2012) also did well at €51.000. An 18 year old Case IH MX 150 went for €33.000. Unfortunately, auction houses such as Troostwijk, VDI and Ritchie Bros do not publish prices in the Netherlands.

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The Dutch tractor market is one with relatively small numbers and a traditional basis. People often buy around the corner and trade in neatly. Auctions give people a negative taste, although this is changing. Foreign trade in particular is a major buyer of used tractors. In Ireland, even more second-hand tractors are imported than new ones sold. In the Netherlands, even at these prices, new will probably continue to dominate. However, there is a new group that chooses gold from old. I'm sure that group is growing.

Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.

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