Auction

Wisconsin Ag Regulators Propose Massive Livestock Fee Increases

Thu, 11 Sep 2025 19:33:29 GMT

The Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP) is proposing changes to rules, ATCP 10 and 12 , regulating animal disease and movement and animal markets, dealers and truckers.

According to the Wisconsin Farm Bureau Federation (WFBF) , these changes include massive fee increases that will be a substantial financial burden to markets, dealers and truckers that will unavoidably be passed down to farmers.

The license fee for what the DATCP calls “Animal Market Class A” would change from $420 to $7,430. A late fee for those markets would also increase by nearly 1,700% by shifting from the current price of $84 to $1,486. The registration fee paid by about 1,000 truckers transporting livestock in the state would increase 517%, from the current price of $60 to $370.

(Wisconsin Farm Bureau)

WFBF Government Relations Director Jason Mugnaini says it is important to clarify that Wisconsin’s program had historically received state funding support through DATCP, but this proposal shifts that onto industry fees.

The WFBF also reports the inspections and public health activity costs of these programs have previously been partially funded by state funding in Wisconsin, as they are in neighboring states. DATCP’s proposal shifts the full cost of these programs onto industry fees.

DATCP Secretary Randy Romanski explains the fees have not been adjusted since 2009 and the increases are needed to maintain critical animal health and transportation services.

“This program is currently in deficit because these have not been adjusted for so long,” Romanski explains. “Costs have increased during that time.”

He is transparent about the financial realities driving these increases. While the percentage increase might seem large, it reflects 17 years of accumulated cost pressures. He summarizes the goal is not to burden the industry, but to ensure the continued provision of critical animal health and movement services.

According to Sam GO, DATCP communications director, the DATCP Division of Animal Health receives federal funding through cooperative agreements for specific goals and objectives, such as animal disease surveillance and animal traceability. The cooperative agreements are separate from the programs in the proposed fee rules and do not fund the programs in the proposed fee rules.

She explains as federal funding for the cooperative agreements has decreased, those activities that are partially federally funded (such as animal disease surveillance and animal traceability) need to have a larger portion of their costs covered by the state animal health general program revenue. That means there is less state GPR remaining to cover the deficit in program revenue for the ATCP 10 and ATCP 12 programs.

The ATCP 10 fees support the following animal health programs: Certificate of Veterinary Inspection (CVI) Forms, Intermediate Handling Facilities, Disease Certifications (Brucellosis, Tuberculosis, Pseudorabies), Equine Infectious Anemia Retests, Equine Quarantine Stations, Feed Lots, Medical Separation, National Poultry Improvement Plan (NPIP), Farm-Raised Deer, and Fish Farms.

The Process

Romanski explains the administrative rule process is collaborative and takes about two and a half years. He says the process is designed to be collaborative with multiple opportunities for public input and engagement. He encourages stakeholders to not just critique the increases, but to offer constructive feedback and potential alternative solutions.

The current stage is specifically about public comment and engagement. He says the department wants to hear from industry members, producers and other stakeholders. They are actively seeking input that can help shape the final rule package.

The public can participate and provide feedback that can be considered by the department’s staff through several channels:

Attending public hearings
Submitting written comments by Oct. 15

The remaining hearings will be hosted virtually and at the Prairie Oaks State Office Building, Room 106, 2811 Agriculture Dr., Madison, WI 53708. For more information, dial-in instructions and to register for online access click on the ATCP 10 or 12.

ATCP 10:
• Monday, Sept. 15 – 1 p.m.
• Wednesday, Sept. 17 – 9 a.m.

ATCP 12 :
• Tuesday, Sept. 16 – 1 p.m.
• Wednesday, Sept. 17 – 1 p.m.

Individuals can submit written comments by Oct. 15 to: Angela.fisher1@wisconsin.gov or Angela Fisher, DATCP, P.O. Box 8911, Madison, WI 53708

Romanski explains after the public comment period, DATCP staff will review all submissions, consider suggested changes, and then present any revisions to their policy-making board. This ensures multiple layers of review and public involvement.

Neighboring State Comparisons

According to the proposal document , programs in adjacent states (Iowa, Michigan, Minnesota, Illinois) are similar to Wisconsin, as all are based on federal standards. Neighboring states primarily fund these types of programs through general program revenue; therefore, they have lower fees than Wisconsin’s current fees. While Wisconsin’s program fees are collected from a small number of licensees, these critical programs have impacts and benefits across animal health, animal industries and public health.

In Iowa, a livestock market permit is $50 per year. The livestock dealer and livestock market agent permits are $10 per year. A bull breeder license is $20 every two years. A livestock dealer or order buyer permit is $50 per year. A feeder pig dealer agent permit is $6 every two years. A pig dealer’s agent permit is $3 per year.

In Michigan, an action Class I is $400 per year. A buying station (Class II) is $250 per year. The remaining fees are waived for veterans: A dealer (Class III) is $50 per year. An agent broker (Class III) is $50 per year. A collection point (Class III) is $50 per year. A trucker (Class IV) is $25 per year.

In Minnesota, a livestock market agency and public stockyard is $300 per year. A livestock dealer is $100 per year. A livestock dealer agent is $50 per year.

In Illinois, a livestock auction market license is $200 per year. The livestock dealer license is $25 for a new license, $10 for the annual renewal, as well as $10 for each location in addition to the first location, and $5 for each employee. A feeder swine dealer license is $25, the renewal is $10, and there is a fee of $5 for each employee. There is no fee for a slaughter livestock buyer’s license, just a requirement to submit an annual report.

Industry Feedback

Both the Wisconsin Cattlemen’s Association (WCA) and WFBF have come out opposed to the fee increases.

Tressa Lacy, WCA president from Rio, Wis., voiced her concern at the first hearing on Sept. 11.

“The Wisconsin Cattlemen’s Association is in opposition to the proposed fee increases inspections and registrations related to a variety of activities by Wisconsin animal dealers, truckers and markets in ATCP 10 and 12,” she says. “I raise beef cattle with my husband and our 8-month-old in Columbia County. We both work off the farm in agriculture to financially afford our beef and hay farm operation, and I know the cost of these fees will be passed directly on to producers like us.

“The result of such significant increases will be fewer livestock marketing options, the potential for reduced disease traceability and fewer opportunities to sell livestock in the state of Wisconsin. Fewer options inevitably mean lower prices and thinner margins in an industry that is already being pushed on thin profit lines.”

She explains the inspections and animal health protections funded by these programs serve a broad public purpose — protecting animal health and consumer confidence in the meat raised in Wisconsin.

“It is fundamentally unfair to shift the entire cost onto the users as this is certainly a public food safety conversation,” Lacy adds. “I share the industry concern that these initial proposals are just the start of all programs in Wisconsin shifting to being user funded. Other states fund these programs with state support as the benefits are shared by everyone. DATCP should restore and continue the approach for these outlined programs.”

She concluded her comments saying: “WCA respectfully ask that DATCP reconsider these unreasonable fee increases and maintain a funding structure with state support that is fair, practical and supportive of both public health and Wisconsin agriculture.”

Mitch Giebel a WFBF member from Lyndon Station, Wis., also shared his thoughts on the proposed fee increases.

“I’m very concerned about the massive increases of fees being proposed,” he says. “As a young farmer, every dollar really does matter on our operation. We work hard to raise our livestock, and we already face high input costs, tight margins and unpredictability when it comes to marketing. Adding thousands of dollars in new fees, especially increases as massive as what is proposed doesn’t seem realistic. It’ll undoubtedly make it harder and tighter for the sale barns and livestock markets to survive, and unavoidably, it is probably going to be passed to us as the producers and farmers.”

He also explains programs such as animal health, disease control and traceability benefit everybody in the state, not just farmers.

“Healthy animals and safe food are the best interest for our state; other states recognize that and utilize state funding to maintain these programs and cover these costs,” he says. “Wisconsin needs to restore and maintain its state funding that has historically existed for these programs, rather than shifting a substantial burden on a small number of farmers and marketers. I am asking you to please reject these fee increases as they are written. They are too steep, too fast and out of line with our neighboring states.”

WFBF is calling on producers to share their concerns: “These unprecedented fee increases cannot move forward without your voice being heard. Share how these proposals would impact your farm, your business and Wisconsin agriculture.”

A Silent Truth Hidden in the Farm Economy: Farmer Suicides Are on the Rise

Tue, 05 Aug 2025 14:49:03 GMT

Signs of stress in the farm economy are everywhere you turn, and with corn futures hitting fresh lows again this week, crumbling commodity prices are painting a dreary outlook for 2025, and the financial pressures are causing another bleak reality: farmer suicides are also on the rise.

In 2024, used equipment prices were plummeting at auction, with values of larger horsepower tractors dropping more than 20% . As used equipment flooded the auction market, Alex Kerr, owner of Kerr Auction and Kerr Equipment , noticed another troubling trend.

“This is really odd for me,” Kerr said in a video he posted to social media last year. “Three tractors up here that I bought on auction, and I’m not going to tell you which ones, but they came off of suicide — the reason is that the farmers are no longer here. It’s the reason I’ve got the tractors.”

Kerr noticed the silent truth happening in the midst of the current downturn in the farm economy, which was the fact he was seeing an uptick in the amount of equipment coming to auction as a result of farmer suicide.

“If anybody needs to talk, call your friends, call us. We don’t need to sell you anything. I don’t want to buy more tractors this way,” Kerr went on to say in the video.

Kerr says he typically doesn’t know all the stories behind the tractors he sells, especially if it’s a consignment auction. As an auction company and used equipment dealer, his focus is on the numbers. But at this particular auction, he was compelled to do something.

“I noticed at one point after I had bought some stuff, and I had it all sitting on my lot together advertised for sale. I’m lining this stuff up, and it just kind of hit me. I’m like, ‘What happened to these guys to get them to a point they wanted to do that rather than continue on?’ I’m lining up those tractors, and I thought about it for a while and turned around and made the video,” Kerr says.

While there aren’t any stats on the exact number of farmer suicides happening across the U.S ., according to a CDC study published in January 2020, farmers are among the most likely to die by suicide, in comparison to other occupations. And with 259 farm bankruptcies filed between April 2024 and March 2025, it’s clear the financial stress on farms is only growing more severe this year.

“In most cases, if it’s a financial problem, the stereotypical answer people will tell you is, ‘Oh, keep your head up. It’ll get better.’ Well, if its a financial thing, the odds are it’s not going to get better. If you just keep digging the same hole, it only gets worse. So, you need to stop and make changes in your life or your business,” Kerr says.

Kerr’s video ultimately reached Bridgette Readel , a retired agronomist who is bringing more awareness to mental health among farmers through her social media following on X (formerly Twitter).

“To be honest, I got Alex’s video sent to me by a mutual friend — a farmer from Wisconsin. Alex had listened to one of the Twitter chats that I do on Fridays and heard the discussion which had been about farmer suicide, depression and anxiety,” Readel says. “Alex never wanted to step in front of the limelight, but he could see a trend, particularly in the geography where he works. And he wanted to do something just to raise a little bit of awareness.”

She says Kerr’s video struck a chord because not only was it bringing awareness to a topic not often discussed, but other farmers could relate to it.

“So many folks could recognize themselves in it: ‘That’s my same tractor’ or ‘I have thought about these very same thoughts or problems. How do I get away from them?’” Readel says. “For those who are closer to my age and remember what the ‘80s were like, there were a lot of farm ‘accidents’ that weren’t accidents. And now it’s a fear of what if myself, my neighbor, my brother, my sister or someone else is that next person?”

Agriculture is full of doers. If farmers see a problem, they immediately want to fix it. But when it comes to mental health, it’s not an easy fix — and not one that can be resolved on your own.

That’s why Readel says there’s one main message farmers need to hear right now: it’s okay to not be okay, but you have to ask for help.

“My message to farmers is to remember that you’re not alone, and when you see something with one of your friends or neighbors, ask them. Don’t be afraid. You don’t have to be a professional at it. You can help them find a professional, but sometimes it’s as simple as sitting in the buddy seat and asking how they’re doing. They might not answer you the first time, so ask it the second time,” she says.

As AgWeb reported in 2024, it’s important the friends, family, and business professionals close to farmers are prepared and able to effectively communicate in a mental health crisis. You can read more in this story, Your Mental Health Toolbox: How To Recognize The Warning Signs.

In the U.S., you can call or text the National Suicide Prevention Lifeline at 988, chat on 988lifeline.org, or text HOME to 741741 to connect with a crisis counselor.

Why Now is the Time To Move Used Construction Iron in the Farm Equipment Auction World

Thu, 10 Jul 2025 13:51:25 GMT

Casey Seymour and Greg “Machinery Pete” Peterson agree now is the time when many farmers spend time shopping for what they call auxiliary machinery — things like wheel loaders, skid steers, track loaders and other compact and heavy utility equipment types.

“Skid steers are one of the first things that pop up when in my mind when I start thinking about that right now,” says Seymour, adding there is almost always a healthy supply of the versatile material movers in the used market.

Machinery Pete recalls skid steer values falling a bit last year due to that high supply, but this year is a different story. Values are trending up on used because, once again, the cost of a brand-new skid steer is high.

(Machinery Pete Facebook)

“Pifer’s Auction had a sale (recently), and I think it was a 2024 Deere 335 P-Tier with 275 hours on it, give or take, and I thought that sold really well at $94,000 hard cash,” Pete says.

Another notable transaction came out of Illinois, Pete recalls. At a Joel Everett Tractors & Auction sale, a 2009 John Deere 325 with under 300 hours sold for $36,000, which was well over the previous auction high of $28,500.

“It was interesting. When they got to the skid steer they paused and said, ‘Hey, folks, this 2009 model is loaded with every single option,’ which is unusual for a 16-year-old model,” Pete adds. “But again, it was palpable how many people wanted that thing, and you know, $36,000 is a big check — but for hardly any hours on it and what you’re going to pay for a new one?”

Pete and Seymour also discuss the firming up they are seeing with used values on some of the large construction equipment seen around the farm, including excavators, wheel loaders and bulldozers.

How Kerr Auctions is Unlocking Export Markets

Alex Kerr of Kerr Auctions joined the guys next to discuss how his auction house is carving out space in the export market.

Kerr says the company has capitalized on growing equipment demand overseas by creating specialized sales that cater to export buyers. These sales often feature equipment that may not have strong domestic buyer interest due to age or condition.

Kerr has established partnerships to help overseas buyers handle logistics and shipping, and the company made the decision to eliminate buyer penalties for high bidders. Both decisions demonstrate a level of transparency and trust that helps put buyer minds at ease, he thinks.

“Specialized sales do well,” Kerr says. “We got to thinking that the export buyers, they hate some of the auction things they deal with. They don’t speak the language; you’ve got to talk to them on WhatsApp, or they have an online only presence.”

Kerr Auction’s next big export-focused Inaugural Farmer/Dealer Consignment Sale is set for Aug. 14. Check out all the details here.

The Rest of the Episode

Shawn Hackett, president and CEO of Hackett Financial, joined the show for an update on where commodity markets sit today and row crop futures prices. Glen Birnbaum, principal with Sikich, came on to talk machine depreciation rates and upcoming changes to tax law.

And Aaron Fintel, used equipment specialist with 21st Century Equipment, gave his view on moving used compact construction equipment out on the western plains.

Head over to YouTube to watch the full episode , and give it a “Thumbs Up” and hit the “Subscribe” button to get every Moving Iron episode as soon as it drops.

Swathers to Sprayers: Strong Oklahoma Auctions and Machinery Pete’s Ratio for Fair Used Farm Equipment Deals

Mon, 02 Jun 2025 20:05:45 GMT

This week, Machinery Pete takes us on a trip down to Oklahoma, where he tracked “a bunch of good sales” over the last week, including his Pete’s Pick of the Week winner:

Last Wednesday, at a sale in Waukomis, Okla., a 2019 Case IH WD2104 swather with only 330 hours sold for $128,100, a new record high for that model (pictured above). The previous record price was $107,200.

(Machinery Pete Facebook)

Pete also notes a 2021 Case IH Maxxum 150 tractor with a loader (700 hours) sold for $123,900 in the same auction. That’s the sixth highest auction price of all time for that make/model, he says.

“I think the (high) price of (a) new (swather) has probably made that pretty attractive,” Pete says. “And sometimes people buy new stuff — it might be for tax reasons, who knows — and they kind of drift for a couple years and don’t use it that much, knowing that when they do have their retirement sale that low hour stuff holds its value tremendously.”

Also of note last week in the Sooner State was a Big Iron Auctions farm retirement sale near Forgan, Okla. A trio of well-maintained, high-hour machines caught Pete’s attention there:

(Machinery Pete Facebook)

A 2012 John Deere 8360R tractor with 8,079 hours sold for $106,250. Pete says that’s the highest auction price “by a mile” he can find on a tractor with more than 8,000 operating hours.

(Machinery Pete Facebook)

A 2016 John Deere S670 combine with 28,106 engine hours sold for $80,750.

(Machinery Pete Facebook)

A 2017 John Deere R4038 sprayer with 23,101 hours sold for $116,500.

“Even though these all had higher hours, the farmer who owned them, Max Huling, obviously he took tremendous care of his equipment,” Pete says. “So, whether it’s low hours or higher hours, if you take great care of your stuff, it pays off when it comes time to sell it.”

The Machinery Pete Ratio Explained
Pete crunched the latest numbers at MachineryPete.com to show where used combine and tractor prices sit today in relation to his Machinery Pete Ratio theory.

The Machinery Pete Ratio is a metric Pete came up with to show that the price of a well-conditioned, late-model, used machine at auction should usually fall roughly between 70% to 75% of the dealer advertised price for the same machine brand new. If the ratio is too high, the price of used is inflated. And if it’s too low, the seller is not getting full market value.

Today, Pete says, the average auction price on a used John Deere S780 combine is $250,781, and the average dealer advertised price on a brand-new one is almost $433,000. That’s 60% less that the buyer has to spend to buy the used S780, on average, than it costs to get one brand new. That’s a good deal for the buyer, but the dealer on the other side of the deal might think they are leaving extra money on the table.

For comparison, the average auction price today on a used John Deere 8R 410 tractor is $334,578 while the average dealer price for new is $450,430. That’s a 76% ratio, which falls slightly over the target zone established by the Machinery Pete Ratio.

That metric would tell you if you’re a dealer and you have an excess inventory of used 8R 410 tractors cluttering up your lot now, it might be a good time to move some to the auction market. Or, if you’re a farmer looking for a bargain on a used 8R 410, you might think about waiting to see if the average auction price drops.

“It does look like prices are dropping, the key question now is we just passed June 1, which for me, that’s the buoy in the water,” Pete explains. “It’s when dealers take a collective breath, because customers have seed in the ground, and there’s five months on the books (in 2025) and they go, ‘Ok, how are we sitting on our used inventory, and what are our plans for the rest of the summer and fall to work this down?’ Last year, we saw an avalanche of dealers pushing stuff into the used auction market. This year, I don’t know if we’ll see as big of a push. I don’t think we will, but there’s going to be a lot of stuff that does get pushed. So again, tractors have a little more room to adjust downward, I think.”

Upcoming Auctions to Watch
Pete will be keeping his eyes focused on a pair of auctions this week.

On Tuesday, the folks at Del Peterson Auctions (DPA) will kick off their monthly online auction for June. There’s a 2024 Case IH TV620B skid steer with super low hours (15.6) listed in that sale.

On June 26, in Merritt, Iowa, there is a Zomer Company Realty & Auction farm retirement sale for Joe and Diana Rota that features nice, late-model used Case IH farm equipment.

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Discover Equipment Trends: From Tractors to Hay Tool Innovation

Thu, 01 May 2025 17:00:59 GMT

As May arrives, bringing warmer weather throughout much of the country, two segments in the used equipment auction world are also heating up: lower horsepower utility tractors and unique antique tractors.

Machinery Pete says the utility tractor class (125 hp to 175 hp with a loader) has been fairly strong for the past two years now, and noted a recent sale that shows higher price upside coming into play for those machines.

(Machinery Pete Facebook)

A John Deere 6115M MFWD tractor (962 hours) with a H310 loader with grapple sold for a record $107,500 at an auction last week in Plano, Texas.

Another transaction that caught the eye of Pete and host Casey Seymour took place Tuesday evening at an Almond Vintage Power auction near Nicomas, Ill.

(Machinery Pete Facebook)

A 1911 Imperial 4070 tractor in beautiful condition sold for $955,500. Only three tractors in that year/model are known to exist.

“It’s a very extreme example, but it shows there’s no shortage of money in the market right now, whether it’s the right piece of land or a crazy collector’s item like that,” Pete says.

Seymour, who has over 20 years of experience in the used equipment space, then spent some time with Pete unpacking some of the best practices they’ve picked up over the years for visual marketing up-for-auction equipment.

“The more information you can put out there, the better opportunity you have to spark somebody’s interest,” Seymour says. “And it’s a way to set yourself apart, whether you’re an auction company or a dealership or even selling it privately, to show you’ve got nothing to hide.”

Hay Tool Technology Evolves
Kaylene Ballesteros, go-to market manager – hay and forage products, John Deere, talked about the company’s approach to technology and automation in hay equipment.

She says adding automation to hay tools is no different than the evolution from horses pulling steel plows to diesel tractors working the ground. The idea is the technology has to make hay producers lives easier and also bounce some ROI back into their operations.

Years ago, John Deere launched its baler automation technology, and it recently built onto that ecosystem with Weave Automation. The feature automates “the art of weaving back and forth over the row really carefully” to make sure you get a perfectly square shoulder bale every time.

“Now, the hitch of the baler does the weaving for you, based off bale size and threshold settings it will make sure that bale is a square shoulder bale,” Ballesteros adds. “So, they can sit in that cab with a little less to worry about or go to their kid’s basketball game and put somebody else in the seat. It takes the stress out of that situation, too.”

Is Demand for Used Combines and Utility Vehicles On the Rise?
Aaron Fintel, used equipment specialist, 21^st Century Equipment, says 2025 is still the year of the last-minute equipment purchase. He had a farmer call him just a few days ago, on the cusp of full bore planting season, looking for a used planter. Fintel is also predicting higher demand coming into play on used combines and utility tractors in the 100 hp to 175 hp segment.

“It’s almost like everybody heard how cheap they were and said ‘Well, I suppose we should probably look into one,’” he says of buying behavior in the used utility tractor segment.

Another insight Fintel shares is the current tariff situation and uncertainty in the economy is stifling buying activity among livestock producers. Cattle ranchers, unlike their corn and soy raising counterparts, are riding a wave of strong prices for beef and other proteins.

Watch full episodes of the Moving Iron Podcast and Machinery Pete TV for FREE on our new streaming platform, Farm Journal NOW.

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A New Era: The Ag Equipment Industry's Sugar High Is Over

One of my first story assignments as an agricultural journalist was covering a liquidation auction of repossessed farm machinery in Columbia, Missouri.

It was late summer 1985, and the 1980s farm crisis was at its zenith. I can still envision the endless row of used corn heads across the length of the fairgrounds. In total, 174 pieces of agricultural equipment hit the auction block that day.

This was certainly not the “feel-good” story I had envisioned to start my journalistic journey in the field of agriculture, but I learned about our industry’s fragility.

Fast forward to today, and I’m reading a story by Bloomberg news that proclaimed used equipment, not new technology, was this year’s star of the Farm Progress Show. The article highlighted that BigIron Auctions, a provider of used farm machinery and one of the show’s exhibitors, had its biggest-ever offering. Although this may be good news for the auction company, it is likely a prophecy of bad news to come for the rest of the industry.

You may ask, how bad? When agricultural equipment manufacturers start shedding union line workers, shuttering plants and shifting factories to Mexico, and there’s a glut of used equipment covering dealer lots, you know the tide is quickly turning.

What Goes Up Comes Down
Many of us have observed farm economic cycles. This time, despite the sharp rise in input costs, commodity prices more than kept pace, and ultimately, net farm income tallied $182 billion in 2022. Those good times are in the rearview mirror, though. For 2024, projected net farm income drops to $140 billion.

Not surprisingly, farmers bought fresh paint during the boom period. U.S. farm equipment manufacturers and machinery dealers recorded some of their best sales in more than a decade in 2021, and strong sales continued through most of 2023. Although sales of new small- and medium-sized tractors peaked in 2021, sales of bigger horsepower tractors and combines held their own—until early this year.

The Party’s Over
This most recent sugar high for the ag equipment industry was foiled by high inflation, high interest rates and falling crop prices. New machinery prices ramped up 30% on average in the past four years. In 2020, the average price of a new tractor was $363,000. In 2023, it skyrocketed to $491,800.

Since March 2022, the Federal Reserve has raised the interest rate 11 times to curb inflation. So not only does that fresh paint cost at least 30% more, but also the money borrowed to purchase capital items is 161% higher. Now with commodity prices falling faster than either interest rates or equipment prices, this boom time hayride is over.

The Fallout
The Association of Equipment Manufacturers says June 2024 sales of new two-wheel drive tractors were down 16.3% versus 2023. Combine sales were down 31%.

Farm Journal’s machinery analyst Greg Peterson, who leads the popular online platform Machinery Pete, says BigIron Auctions’ expanded presence at Farm Progress is a sign dealers are trying to get ahead of the train. He notes the night-and-day difference in the OEM-dealer response to this downturn compared to the previous one in 2014 to 2015. This time around, dealers have been aggressively paring down large late-model used inventory. In the first eight months of 2024, the market saw a 450% increase in the raw number of one- to two-year-old equipment units taken to auction compared with ’14 and ’15.

Peterson projects used equipment values will continue to deteriorate in the short term. However, the change in those values may not rival the percentage drops seen in the previous down market. Why? Online bidding.

It is a market force that was in its infancy a decade ago. Machinery auctions used to be a local affair. Now, they are regionalized, perhaps nationalized. Even 65-year-old-plus farmers are bidding on tractors being sold eight states away.

Despite the unprecedented number of large late-model used equipment transactions, Peterson points to a potential silver lining in seeing such a quick spike. The sooner the glut of inventory turns, the sooner the equipment industry will return to brighter times. How quickly this happens is going to depend on a lot of things, so it may be prudent to nudge the market in the right direction.

Craving Certainty
With the politics of this election behind us, there’s a lot that could be done to give the marketplace more certainty. I made a “to-do list” for our newly elected officials to follow to address this issue.

Pass a new farm bill. This is the roadmap for everything from conservation programs to public food policy. Get it done!
Make the expanded Section 179 and bonus depreciation incentives permanent. Incentives from the Tax Cuts and Jobs Act of 2017 are winding down or expiring. U.S. ag manufacturers don’t need less incentive for customers to buy.
Pause new EPA and climate change regulations. Saddling manufacturers with more regulations in a crisis is simply not smart.
Do not raise corporate or personal tax rates. Raising taxes domestically only gives U.S. manufacturers another reason to relocate more factories and jobs out of this country. Maybe it’s time Washington, D.C., starts viewing U.S. agricultural manufacturing to be as important as producing semiconductor chips domestically. If semiconductor chip production is that critical to our national security, then I would argue food security ranks right up there.

According to market analysts, we will be at the bottom of this rollercoaster ride for the next year or so. The good news is that long-term, all signs point to a very healthy recovery of agricultural manufacturing by the end of the decade. As robotics, AI and information systems become increasingly integrated, the U.S. ag machinery sector is poised to grow from $39.56 billion this year to $53.7 billion in 2029.

Of course, hitting such numbers depends on how rough the road is financially between now and then. All I know is we do not need history repeating itself. The last thing I want is to have one of the last stories of my journalistic career mimic the heartbreaking one I started with nearly 40 years ago.