One advantage of experiencing the auction business is getting to go wherever the work takes you. Throughout my travels in the Upper Midwest, I've always noticed things that change from year to year. This year is no exception, especially with the significant rains creating havoc in the fields and affecting small towns along the rivers.

Market Trends in Recreational and Agricultural Equipment

Since this spring, I couldn’t help but notice that vehicle inventories on dealer lots are returning to what we consider “normal.” Recreational vehicle lots are overflowing with ATVs, UTVs, pontoons, and campers. So, what about agricultural equipment? The question is always the same: Where are we at, and where are we going? Prices have been strong for several years, though some weaknesses are starting to show.

This year, inventories are up for both tractors and combines, which may indicate where we are headed. My research concludes that the inventory of tractors 100hp and larger was at its lowest in the summer of 2022 and has been increasing since. In fact, we are nearly back to pre-COVID levels. Combines tell a similar story, although their rebound may take an extra year or two to match that of tractors. Interestingly, the compact and utility tractor market is facing an overstock, with inventories higher than at any time between 2015 and 2020. There are always needs and wants, and more often, the subcompact and utility tractors fall into the “want” category. This likely explains what we have been witnessing in recreational markets as well.

The Auction Market: A Forecast Amid Election Year

As the summer progresses, we are still seeing strong auction activity in both buying and selling. Auctions provide opportunities for everyone to be on a fair playing field. Navigating profitability across all sectors that we work in will be crucial this season. With an election on the horizon, don’t expect auction activity to slow down. Looking back at previous presidential election years, they have recently been synonymous with large numbers of auctions.

As we approach the upcoming auction season, with its challenges and opportunities, it is essential to keep a keen eye on market trends and inventory shifts. While unpredictability sometimes seems like the norm, especially in election years, our experience and dedication allow us to adapt and thrive. At Steffes, we remain committed to providing our clients with the best possible outcomes, leveraging our deep understanding of the agriculture sector and auction markets. Whether you are looking to buy or sell, you can count on us to effectively navigate these dynamic conditions. As always, our team is here to support you every step of the way, ensuring that your needs are met with professionalism and expertise.

Ashley Huhn
Director of Agriculture and Real Estate