Pub. 10 2021 Issue 3

34 Mark Stock BigIron Auctions B ig demand for used farm equipment creates a hot market and higher sales prices. Due to the COVID-19 pandemic, raw materials are scarce, and heavy equipment makers have had to readjust how they are manufacturing farm equipment, which has caused production to slow down and delivery delays on new equipment to be common. The scarcity of equipment is causing a large demand for used machinery by buyers who aren’t able to purchase anything new for a period of time, creating the perfect scenario for those who want to sell equipment or are contemplating retirement and selling off assets. If you are working with farmers who have been debating the life-changing decision of retirement or are simply looking to sell equipment they are no longer using, now is the time to act. This greater demand for used equipment is resulting in higher final sales prices for sellers, which provides a more significant financial return and can put them in a better financial position for retirement. If a farmer is wavering or just recently made the decision to stick it out for one more year due to optimism in the ag market, they may be better off liquidating their assets now when buyers have more money in their pockets. There is no guarantee that prices will remain high. Retiring farmers can capitalize on higher returns now, while future retirees who choose to farm one more year risk obtaining less for their assets next year. The pandemic has also changed the auction business, and farmers are turning to online auctions more than ever to sell used equipment and farmland. The benefits of an online auction are increasingly apparent and an excellent choice for your clients who want to retire and increase their capital. Sellers can take advantage of the hot market as well as showcasing equipment to a global buyer base, which means even more buyers bidding on equipment and driving up profits.