2024 Year in Review: Row Crop Tractors

In 2024, the auction market for row crop tractors experienced a significant increase in the availability of used inventory, particularly from brands like John Deere, Case IH, and Fendt. This surge in supply will lead to increased auction activity and downward pressure on prices, as more and more machines enter the market. The current used row crop tractor market is at pre-covid levels, with the majority of units on the market comprised of late-model, low-hour tractors.

Oversupply and Declining Prices

John Deere, traditionally a dominant player in the row crop tractor market, has seen a notable rise in the number of used tractors entering used inventory, particularly the 8R 370. The influx of these machines has led to increased competition among sellers, resulting in lower retail prices and competitive financing options.

As the market has become flooded with used John Deere tractors, an uptick in auction activity is on the horizon. With most dealers focused on everything but row crop tractors, other segments of their used inventory are manageable. Focus in 2025 will shift to the glut of row crop tractors on dealer lots. The pressure from oversupply is a major factor in this decline, as there are simply too many used tractors on the market, which weakens their value.

Case IH has also experienced a rise in the number of used tractors available on dealer lots. The sharp increase in Case IH tractors has intensified competition among sellers, driving prices down accompanied by low-rate finance offers. Tractors that would have once fetched a higher price now have to compete with an ever-growing pool of similar machines. Even relatively new models have seen price reductions compared to previous years. The increased supply has shifted the market toward a buyer’s market, where prices are dictated by the growing inventory and not the demand for premium models.

Fendt, though rare in the U.S. auction market, faces its own set of challenges in 2024. Due to the brand’s limited presence in the U.S. row crop tractor market, Fendt tractors are almost never found in auctions. When they do appear, they are often priced at a premium due to the smaller number of tractors available. They remain a niche product. Prices for these tractors are often driven by specialized interest and not broad demand, making them less predictable in terms of auction prices. However, the limited availability means that those who do purchase them are often willing to pay a premium.

2025 and Beyond: Increased Auction Activity

Looking ahead, the expectation is that the trend of increased used tractor inventory will continue into 2025 and 2026. The surge in supply is likely to lead to increased auction activity as more sellers look to offload their machines. However, this increase in auction frequency will likely be accompanied by lower prices across the board. As more tractors enter the market, the competition among sellers will grow, which means that prices will continue to face downward pressure.

This trend toward oversupply is expected to benefit buyers, who will have more options to choose from at lower prices. However, it poses challenges for sellers, who will find it increasingly difficult to secure premium prices for their used equipment. Auction markets will likely become more crowded, and while activity will increase, sellers will need to adjust their expectations for how much they can get for their equipment.

In conclusion, the auction market for row crop tractors in 2024 has been significantly affected by the sharp rise in used inventory. John Deere and Case IH have both experienced an influx of machines, leading to increased auction activity but also a decrease in prices due to the oversupply. While Fendt tractors remain rare in auctions, their high prices and limited availability still attract interest from a niche market. As we move into 2025 and 2026, the expectation is that this trend of growing used tractor inventories will continue, which will lead to more auction activity but also increased competition and lower prices. Buyers will have more choices, while sellers will face greater difficulty achieving higher prices for their equipment.

For more about used equipment, listen to my episodes on the Successful Farming podcast on the last Monday of each month. Aaron Fintel and I explore current market conditions and factors driving used equipment. Please tune in to the Moving Iron podcast, where I track the economic drivers of the farm equipment business, and check out movingironllc.com for everything
related to Moving Iron.