I got an article in my rss reader this morning from a site that talked about how prices for used equipment that is still in pretty good shape is going for absurd prices. A 1999 john deere 9610 combine sold for $89,000!!! that is nuts to me. there were also other things that sold. here is that article http://blog.machinefinder.com/4519/high-used-machinery-prices I just can't see myself paying that much. what about you guys?
I would say not necessarily cash, probably just optimism. But so saying here are some other differences. 1. Our dollar is about par to USA dollar right now but 10 years ago exchange was as poor as 1.65 USA to 1 CAD. Because a lot of farm equipment is built in the USA and especially in this case Deere, values will be high in Canada comparison wise until machines start flowing north over the border or the exchange rate drops. 2. We're not affected by the cheap prices for rusty, faded, or houred out machines from the coastal or deep south areas. In the situation of combines hardly any combines in Western Canada harvest corn and if they do it's a small percentage. On machines that only harvest small grains augers and elevators etc never wear out and other components last longer as well. A good percentage of farmers on the prairies have a shed of some kind to park their bigger equipment in when not in use and even if it isn't paint doesn't fade like it might in the deep south or rust like it would it in some of the coastal areas. Anyone knows that equipment that's taken care off and has nice paint will bring good money.
I can barley afford to buy a small used 50hp tractor let alone any other piece of equipment. Still small operation with access to larger equipment if needed though. (another post closer to being able to start a new thread)
When i was living back at the farm in Ontario i also was shocked on some of the prices for equipment, especially with the little to no subsidies that the farmers back home get.