Used machinery is hot property
Used machinery is hot property
AUCTIONEERS are forecasting demand for better quality second-hand machinery will continue well into the summer despite recognition that arable margins have fallen in line with other farm income over the past year.
The level of interest generated by sales featuring tractors, combines and implements, often worked for just one or two seasons, continues to be exceptionally strong, said Brown & Cos Ken Pritchard.
"There are still a number of producers looking at letting out land or entering management agreements. These decisions are being made on a relatively short time scale providing the market with a good supply of quality arable equipment with low-hours that was not available a few years ago.
"With some of the newest machinery being offered, vendors are likely to take a hit on the recovered value, but more money can be made by realising the value of the machinery and doing other things then the shortfall has to be put into perspective."
Cheffins is also recording strong demand for sale catalogues. This weeks offer of equipment from the large arable estate of EW Pepper, Royston, Herts, featuring an extensive array of arable, potato and irrigation kit due to a change in farm policy has created huge interest.
Despite low interest rates, many farms are still viewing second-hand machinery as an attractive option compared with new purchases, adds one market commentator, especially where arable incomes are insufficient to sustain high overheads for machinery. *