After several years of dramatic highs and lows, the farm equipment market may finally be starting to stabilize.
Corey Nordhausen with AgDirect says it doesn’t take much of a look back to see just how quickly conditions changed.
That surge in demand created tight supplies across the countryside, but it didn’t last forever.
As the market corrected and inventory worked its way back through the system, many began to wonder where things would ultimately settle. Nordhausen says now, the market is showing signs of finding its footing.
Nordhausen says while prices are not necessarily rebounding across the board just yet, the bigger takeaway is that the market may have finally found a floor after several years of sharp swings.
A lot of that comes from used inventory working its way through the system, while at the same time, there’s now a tighter supply of late-model equipment on the market.
He says when you combine that with continued increases on the new equipment side, it starts to create a more balanced environment where supply and demand are coming back into alignment.
After the volatility producers have seen in recent years, that shift toward stability could play an important role as farmers evaluate equipment decisions moving forward.
