Post by jamshundred on Mar 13, 2016 20:40:28 GMT
Source: Progressive Farmer
The used-farm-equipment pipeline is clogged. Just as new-equipment sales have been sluggish for the last three years, so have sales of used machines. Units have piled up on dealer lots and kept the auction houses busy.
Congress tried to help and in December it made Setion 179 of the IRS code permanent. The intent was to give tax relief to business owners wo purchase new or used equipment, including farm machines. It worked great when farmers had large tax bills that needed write-offs, but it doesn't help as nuch now as incomes and tax liabilities shrink.
If you are in the market for good used equipment, now might be the best time to buy in many years. However, if you want to sell, prepare to accept less than you want. More equipment on the market, and more farmers retiring, losing rental land, or being crunched by the banks.
The used-farm-equipment pipeline is clogged. Just as new-equipment sales have been sluggish for the last three years, so have sales of used machines. Units have piled up on dealer lots and kept the auction houses busy.
Congress tried to help and in December it made Setion 179 of the IRS code permanent. The intent was to give tax relief to business owners wo purchase new or used equipment, including farm machines. It worked great when farmers had large tax bills that needed write-offs, but it doesn't help as nuch now as incomes and tax liabilities shrink.
If you are in the market for good used equipment, now might be the best time to buy in many years. However, if you want to sell, prepare to accept less than you want. More equipment on the market, and more farmers retiring, losing rental land, or being crunched by the banks.