Discover The Value Of Your Farm Equipment In 3 Easy Steps

Tractor Zoom

Dec. 02, 2022

Today, farm equipment is likely the second largest asset class on your balance sheet, yet it has historically been the hardest item to value in real-time. According to a survey completed by Successful Farming and Tractor Zoom, over 82% of farmers said their biggest pain point when buying or selling equipment was understanding what it was worth.

Equipment Lists from Tractor Zoom now allow farmers to quickly and accurately identify the value of their farm equipment. This recently launched feature is free to use and can be compared to a blue book for tractors, combines, sprayers, or any other piece of equipment in your fleet.

Plus, your list of equipment and values is automatically updated based on the current equipment market, so you can come back and see how much your equipment is depreciating (or appreciating!) at any time.

You can identify the value of your farm equipment or even the farm machinery you are looking to buy, with this tool in 3 quick and easy steps.

Step 1: Enter the make, model, and year of your equipment

To provide estimates relevant to your region, specify where the equipment is located by entering your zip code.

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Estimates from Tractor Zoom are backed by over $20B of actual farm equipment sales, with transaction data updated daily. This ensures the estimates provided to you are based on the most up-to-date prices, reflecting today’s market values, not outdated prices from last quarter or last year, and not what some other person thinks your equipment is worth.

Step 2: Share relevant specs

Share a little more about your equipment by answering questions specific to the category of equipment in question, and to your individual make and model. While additional details can be entered, they are not required. The more information you provide, the more accurate your estimate will be.

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When calculating estimates, Tractor Zoom prioritizes the most applicable specs for each equipment category. For example, estimating the value of a row crop tractor will require operating hours and drive type at a minimum, while estimating the value of a combine will need operating and separator hours at a minimum. Supplying these additional details means your estimated equipment value is based on the most relevant comparables, not a category average.

Step 3: Specify the condition of your equipment

Finally, designate the current condition of your equipment — excellent, good, average, fair, or poor. Descriptions for each condition type are included when selected to help you choose the right one.

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The whole process will likely take 2 minutes or less to identify the value of your farm equipment or heavy machinery.

See what your equipment is worth

Tractor Zoom analyzes the inputs you’ve entered and then presents you with up-to-date market value estimates for your equipment. Estimated values are presented for both the auction and retail market so you have a complete view of what equipment like yours is being sold for today.

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And, since Tractor Zoom collects equipment sale data from over 70% of the used equipment market, you can rest assured you have the most up-to-date equipment values when you’re ready to sell, trade in, buy new, or update your balance sheet at the end of the year. Easily access your equipment values 24 hours a day, 7 days a week online, via the Tractor Zoom app, or by downloading a PDF directly from your Equipment List.

Additionally, your equipment is now saved in your Equipment List, which means you can keep tabs on the value of your equipment over time and as the market shifts. 

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Start an Equipment List today. 

Empowered decision-making

While understanding the value of your equipment may give you the upper hand when looking to buy or sell, it can also help you run a more profitable operation. 

Understanding your equipment’s value, or more importantly, the value of your entire fleet gives you a more accurate picture of your operation’s net worth and fixed assets. Additionally, it can help mitigate unnecessary expense or risk by over- or under-valuing your assets.

For example, the average auction value of a John Deere 9560RT in January 2021 was $187,000. Today, the average auction value is $231,000, a 24% increase. If last year’s outdated figure appeared on your balance sheet, you have just undervalued your net farm income by $44,000, potentially impacting your access to working capital or the best interest rates. This may not seem like much but imagine if your entire fleet was undervalued!

Understanding your equipment’s value and tracking it more frequently is becoming increasingly important in today’s market. Ensuring your equipment is not over- or under-insured, generating a succession plan with accurate values for your farm, or identifying peak times to sell, trade-in, or even buy equipment are only a few of the ways you can make more empowered decisions knowing what your equipment is worth.

Mitigate risk and boost your operation’s profitability with an Equipment List from Tractor Zoom. You can discover your equipment’s value right now by visiting our dedicated Farmers Business Network® page on the Tractor Zoom website or find Tractor Zoom at the Farmer 2 Farmer event, December 6-8, 2022, booth #48.

The views expressed in this article are the author's alone, and not those of Farmer's Business Network, Inc., its affiliates or members. As such, neither Farmer's Business Network, Inc. nor any of its affiliates makes any representations or warranties, express or implied, as to the accuracy or completeness of the statements or any information contained in the material and any liability therefore is expressly disclaimed. 

Tractor Zoom

Dec. 02, 2022

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