The Agricultural Engineers Association (AEA) has reported that 2016 tractor registrations are down by 11 per cent, illustrating the decrease in new tractor purchases.
Farmers continue to extend their replacement policies rather than purchasing new machinery, according to the association. Consequently, the second-hand trade has continued to grow.
Coupled with significant increases in manufacturer’s prices, quality second-hand stock is becoming increasingly attractive to farmers.
The largest agricultural auction in Europe, Cheffins, saw the highest grossing sale of second-hand machinery on 7th November with sales totalling £3.5m at its sale ground in Sutton, Cambridgeshire. This is an uplift on sales of over £1m compared to November last year.
The most expensive tractors were purchased by UK dealers who are reporting a shortage of used stock due to a decrease in trade-ins from farmers. Against a challenging agricultural climate, dealers are reporting that farmers are turning to second-hand stock rather than purchasing new machines and this was reflected in the sales results on Monday.
The weakening pound also continued to attract foreign purchasers and November’s sale saw the return of a number of mainland European buyers. Buyers included a large contingent from France, Spain, Belgium, Czech Republic, Bulgaria, Poland and the Ukraine, as well as trade from the Southern Ireland and Middle East and Northern Africa.
November’s sale also saw an increase in sales of tractors direct from farms. Farmers have been looking to replace machinery and to make the most of the strong trade and prices achieved at auction due to exposure to the export market.
Eleven hour tractor ride
Bill Pepper, Director, Cheffins, comments: “With sales grossing over a third on November’s sale last year, we can really see that both the UK and export market for second-hand machinery is booming. The cocktail of rising prices for new tractors, lack of new tractor registrations, a shortage of stock for dealers and a drop in trade-ins has really brought the UK dealers back to our market.
“This, combined with the export trade making the most of a drop in the pound, has led to UK buyers vying against the foreign buyers and has in turn pushed up prices. We have also had a number of farmers entering stock to be sold as they see auction as the best way to achieve the highest prices for stock.
“One farmer from Lancashire drove his John Deere all the way to Cambridgeshire for the sale, taking him eleven hours, however it was well worth the trip as it eclipsed its reserve price by £5,000 and was purchased by an East Anglian dealer,” Mr Pepper concluded.
