Greg Peterson, popularly known as Machinery Pete, recently described the current state of the used tractor segment as “finding its footing” in a recent AgWeb article. After a rough ride in 2024 and 2025, the market appears to be stabilizing and, in many cases, showing early signs of recovery.

Last fall, used tractor prices dropped sharply as many dealers, flush with late-model trade-ins, pushed inventory into auctions aggressively. Peterson notes that dealers who proactively managed inventories last year are now in a better position and used tractor prices are bouncing back. The effect is almost boomerang-like: heavy supply pressure drove values down, but the pullback in dealer liquidation is helping soften the slide and in some cases reverse it.

One clear signal of shifting dynamics is that the number of auctions through the end of September was up 14.5 percent versus last year. Peterson expects that auction activity will continue rising into year-end and into early 2026. What’s notable is that although volumes are up, pricing pressure appears to be easing as the market finds its footing, with dealers reducing their flood of late-model used units into auctions.

Anecdotes from the Auction Block

Real auction outcomes help confirm what Peterson is saying. At a recent two-day consignment sale in Arkansas, a nearly new 2022 Massey Ferguson 4710 with a loader and just five operating hours sold for $45,495. That is the highest price Peterson has recorded in 2025 for a used 4710. “There was a note on the Massey, and it just said.. the dude had bought it and then just didn’t use it,” Peterson said. “And you know, it sounds funny, a two-year-old tractor with five hours on it, but I do run across those situations a fair amount more often.”

In other high-end deals, a 2024 John Deere 8R250 with 1,897 hours sold for $185,500, a record auction price for an 8R250 with more than 1,500 hours. A 2023 John Deere 6R155 4WD with 693 hours brought $167,500. These are impressive outcomes, especially for tractors that are no longer brand new, and they help underscore that buyer demand is still strong for quality late-model units.

Where Values Have Been and Where They Are Now

The drop in used high-horsepower tractor values was substantial. According to Machinery Pete, prices for high-horsepower tractors declined between 18 and 23 percent from their 2023 peaks. That kind of decline rattled the market but also set the stage for gains as the supply pendulum swung back.

Earlier in 2025, Peterson warned that the flood of dealer trade-ins would create downward pressure. He said that oversupply on dealer lots meant that farmers could find great deals on late-model equipment in 2025, particularly in the two- to seven-year age class. Speaking at the Keystone Cooperative’s Co-op Classic, he said, “I don’t think in your farming career you’ll maybe see a better period for getting great value on late model used equipment than right now.”

Peterson sees opportunities for farmers who have been waiting to sell, as the value of their machinery is swinging back up. In addition to the reduction in dealer liquidation this year and the tightening of new equipment production, he also suggested that once corn and soybean prices improve, used equipment prices could rise sharply again, similar to what the market experienced in 2021 and 2022.

When demand rebounds, tighter supply could put upward pressure on used machinery prices again, favoring those who buy early.

Challenges and Caveats

Despite encouraging signs, the market isn’t without its challenges. The broader farm economy, especially on the grain side, remains tight. Many farmers continue to operate cautiously, holding off on major purchases. Until commodity prices improve, large-scale investment in new machinery is likely to remain muted.

Not all segments are recovering evenly. Older tractors over ten years old still carry more risk, and buyer demand continues to favor cleaner, more reliable late-model machines. With higher interest rates and maintenance costs, resale margins can be narrow.

What This Means for Farmers

For anyone in the market, now is the time to pay attention. The used tractor market has steadied, and that creates an opening for both buyers and sellers heading into the end of the year. Buyers who start scouting listings early on Tractor Tuesday’s marketplace can still find late-model machines at fair prices before values climb further. Many dealers have already worked through excess inventory, which means quality, well-maintained tractors are starting to move quickly. Farmers who have been waiting to upgrade should begin browsing now, comparing prices and watching for motivated sellers ahead of the holiday and year-end auction season.

Sellers, on the other hand, have a window of opportunity as demand improves and supply remains tight. Listing your tractor or machinery on Tractor Tuesday before the December auctions could help you take advantage of stronger buyer interest and avoid the rush of competition that comes when everyone lists at once. Clean, field-ready equipment is bringing premium bids again, especially if it photographs well and comes with clear maintenance records.

Whether you’re buying or selling, it’s smart to get positioned now. Watch Tractor Tuesday’s daily listings, evaluate comparable sales, and consider entering December’s auction cycle when the market will be at its most active. With prices stabilizing and confidence returning, this fall and winter may prove to be the best time in years to make your move.