Used Combine Values and What the Recent AHW Dealer Auction Can Teach Us

Used combine values are a big concern for many this year.  This is especially true going into the high demand August market with a tight supply of farm equipment. Just last week we saw a significant sale with Sullivan’s AHW dealer auction on June 15th. The listing was heavy with harvesting combines, draper heads, plus a few late model tractors and sprayers. This auction provides a great look at the market’s direction when analyzed with our Iron Comps database.

With over 60 lots of AHW’s equipment sold, we chose just a few significant pieces to test against the current trendline. Used combine values may be the most intriguing for dealers to look at now so they can gauge what the market may look like in August during prime selling season. For those interested in tractors, headers, and self-propelled sprayers, I’ll be diving into those in some upcoming analysis. The good mix of both Hagie and Case make for a nice brand comparison of sprayers!

Case-IH 2377

Harvester sales at this Sullivan auction ranged from $61,000 for a 15 year old Case-IH 2377, to a 2018 John Deere S780 2WD valued at $288,000. In addition to studying these bookends, a 2017 S680 4WD was analyzed. It has relatively low hours and some bells and whistles worth looking at.

The 15 year old Case 2377 may temper an overly bullish outlook on this market. With just over 2,000K separator hours, this would have justified $55,000 based on the Separator Hours vs Price graph which trends 2019 and 2020 values shown below.

Case IH 2377 Used Combine Values
Iron Comps Values Case IH 2377 Combines

10% above expectation may seem bullish, but compare that to the most recent sale where a 3,000 sep hour model sold for $67,000. This reaffirms what we have been sharing about late 2020 and early 2021 sales. Most older machines are seeing a flat or modest single-digit year over year increase in expected values.

If you caught our 5 Trends for Equipment Dealers webinar last month, you will recall that used combine values had not yet seen the post-pandemic bump that tractors have been experiencing. Some of this delay may be due to the void of late-model machines on the market. This theory was tested with a relatively young 2018 John Deere S780 at the AHW auction, which brought the top combine value of $288,000. We will dive into that next.

John Deere S780

The entire auctioneers description for this S780 is as follows:

2018 John Deere S780 2wd combine, ProDrive trans., ContourMaster feederhouse w/CommandTouch 5 spd. drive & hyd. fore/aft, 28.5′ unload auger, PowerFold bin extension, chopper, PowerCast tailboard, Active Yield, 650/85R38 drive tires and duals, 750/65R26 steer tires, LED lights, premium cab, 10″ display w/AutoTrac, Turn Automation, Data Sync, Implement Guidance, In-Field Data Sharing, Machine Sync, RowSense & Section Control activations, 899 eng./640 sep. hours, SN 1H0S780SJJ0801614

Our Tractor Zoom database has a significant number of these S780 for a quality comparison. In the  bottom bar graph below you can see a slight year over year average price increase in the S780 values. Because of all the variables in play we need to look at closer comparables to truly judge market movement. In the top graph, the orange square represents where this AHW combine ranks in terms of separator hours and sale price.

John Deere S780 Used Combine Values
Iron Comps Values of John Deere S780 Combines

Our AHW S780 is on the top end of expected values for its hours when compared to the past three years. High, but certainly not an outlier. Below we drill down even further into a look at two specific comparables. The first screenshot of Iron Comps Auction Results surfaces the most recent sale dates and closest hours. This view indicates that used combine values may have hit a ceiling.

John Deere S780 Combines Sold In 2021 Between 500 And 700 Sep Hours

However this does not indicate the market is reversing by any stretch of the imagination. Below the next image narrows down the search to the two closest sep hour comparables. Both sold in the combine flurry that was last August of 2020.

John Deere S780 Combine Between 600 And 700 Seperator Hours
John Deere S780 Combine Between 600 And 700 Separator Hours

You can see how much values have risen in just a year. From $249,000 average last year to $288,000 for this auction. A 15% jump!

John Deere S680

We have explored the top and bottom of used combine values in this auction. Approximately a 15% to 10% increase is seen, respectively, over last year. Let’s open it up and see if a mid-hour combine falls somewhere in between. A 2017 John Deere S680 4WD sold for $186,000 with just over 1,000 separator hours. Below is the full auctioneers description:

2017 John Deere S680 4wd combine, ProDrive trans., ContourMaster feederhouse w/CommandTouch 5 spd. drive & hyd. fore/aft, 26′ unload auger, chopper, PowerCast tailboard, bin extension w/tip-ups, 520/Interactive Combine Adjust, ActiveYield, LED lights, premium cab, 1,445 eng./1,071 sep. hours, SN 1H0S680SPG0795113

Comparing our S680 with other 2021 sales, the value is in line with others in the TZ database. A great comparison, pictured below, sold in late March of 2021 at a consignment auction in Minnesota for $200,000.

John Deere S680 Comparable Value for $200,000
Iron Comps S680 Combine Values

While this comp does have a refrigerator, the other options are similar and reinforce the theory that 2021 values may have hit a top and stabilized for now.

Iron Comps has the ability to filter by hours and auction type. Using this we can slice data to consist of only S680’s between 900 – 1100 hours sold at dealer auctions. Contrasting these historic equipment values, this AHW combine’s sale price exceeds 2019 and 2020 values by about 30%.

Comparable John Deere S680 At Dealer Auctions Between 900 And 1100 Hours
Comparable John Deere S680 At Dealer Auctions Between 900 And 1100 Hours

Used Combine Values in 2021

Big movements in used equipment values tend to coincide directionally with significant commodity price changes. With the exception of wheat, current cooling of the corn and soybean markets may be tapping the brakes on the rising used equipment values we have been riding over the past eight months. Another major factor at play will be the necessary demand of combines prior to this fall. Will a tight new and late model supply force prices even higher? Will downward pressure of the grain markets have any effect?  To answer these questions keep your Iron Comps app open and your eyes on the most recent sales!

Montana Monsters: The Case 4894

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4894.4
Beneath this pretty red paint are a pair of Case 4894s with great big Swedish hearts…the last hurrah for JIC’s 4WD lineup. They sell next Tuesday, April 27!

See the details on these tractors.

That’s right, kids…not one Case 4894, but a pair of ’em this week!

In the late 70s and into the 80s, big 4WD power was where it was at. The idea itself wasn’t new; the Steiger brothers had been building 4WDs for nearly 20 years at this point. But, with farm expansion in the 70s, farmers needed more power to pull bigger implements, and the industry was really starting to take off.

The typical 4WD of the 70s followed a pretty basic formula. Build a big tractor that bent in the middle (or have Steiger build you one…), let the marketing & advertising people do their thing, and voila! Well, the people at J.I. Case thought that was pretty much the most ridiculous thing ever. How do you keep a tractor that BENDS IN THE MIDDLE going straight?

Seems like a pretty legit question, right?

J.I. Case’s approach

Ever since the factory in Racine turned out their first 4WD (the 1200) back in the early sixties, they felt a straight frame with axles that could pivot did a better job. That was their story, and they were stickin’ to it. Honestly, they’d had pretty good success with their 4-wheel-steer setups, too. They were complex systems, and they took a little more TLC than a center pin. Man alive, though, they sure could turn a tight circle! Less than 19′ even with duals! Good luck doing that with a Steiger! Additionally, the crab steer was a big help on hillsides. It all but eliminated side draft!

082620Deanco1200TK
JIC’s first entry into the 4WD market was the 1200. Neat tractors, and they’re become pretty darn rare these days!
1470TK Copy
An early 70-series Case…again, with a face that only a mother could love. Plenty capable, though!
Case 2670
The later 70-series tractors showed a more refined design and addition capabilities for Case’s 4WD tractors.

So in August of 1979 when Case launched the 90-series tractors, they touted them as “the most advanced 4WD tractors had ever built”. They were impressive tractors, too. The new “Silent Guardian” cab was a game changer for sure; it was roomy and quiet – even quieter than a SoundGard!

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The predecessor to the 4894 was this one, the 4890. (It’s missing side shields.)

In 1984, they updated the 90-series tractors to the 94-series. Fundamentally, they were the same tractor (save for one all-new tractor at the top of the stack – the 4994), but where the 90 was pretty analog, the new model incorporated more electronics and a digital dashboard. They still retained the same transmission and powerplant…which for the Case 4894, came from Sweden.

Wait…what? Sweden? Why?

Yep. Sweden. Home of meatballs, IKEA, the northern lights, and an unintelligible Muppet.

Scania was (and as a wholly-owned subsidiary of Volkswagen today, it still is) a major player in the diesel industry, and they’re a driving force in the global trucking market. They build semis and city buses, as well as lots of motors for various applications. They’re a big deal!

JIC partnered with Scania for motors for the top tractors in the 70, 90, and 94 series. The 2870, 4890, and 4894 used Scania’s DS11 motor, a 674-inch inline six that made about 300 horse. The 4994, Case’s biggest-ever tractor, used the DS14, an 866-inch V8 that made 400 horse! They were stout powerplants that performed very well in the field.

Partnering with a Swedish company, no matter how beefy the motors, though…it seems…well, a little strange, honestly. I’ve wondered why Case chose Scania for a long time. Never found a really reliable answer to the question, either. I’ve heard theories as to why Scania got the contract, though.

Theories

Steiger & Versatile were pretty heavily involved with Cummins at the time. There could’ve been a clause in their contracts that Cummins wouldn’t sell to anybody else. It wouldn’t be the first time a company had negotiated a contract like that.

Interestingly enough, the last five or ten 4994s built left Racine with an 855 between the frame rails. I believe one of them actually sold at a Canadian farm sale in October of 2019. I also know of one 4894 living in Minnesota that has what appears to be a completely factory-installed L10 Cummins in it. I’m not sure what the serial number is, though, so I don’t know if it’s early or late. I’m guessing it might be a late one.

I do know that Scania made a push into the US market with a small contract with Mack over the road trucks earlier in the 70s. That might’ve caught JIC’s eye, especially if the big motors were a cost-effective option. Case could’ve been taking a gamble on Scania’s success in the States.

It could’ve also been a case where the top brass at JIC & Tenneco were just huge ABBA fans, too… ?

In the field…

In the field, the 4894s were monsters. They were very popular in the west as well as in the Canadian wheat and canola fields. Hilly country was where these tractors made their mark. They might look a little funny when they crab-steer, but man alive, it sure is effective!

They were powerful and capable, but as with most complex systems, they did need maintenance. The crab-steer system had a lot of moving parts, and if the owner didn’t look ’em over and address issues, consequences could be costly. An ounce of prevention definitely saved a pound of cure, in the case of the big crab-steer tractors!

Even though they sold relatively well, the factory only churned out 872 of these big tractors. Part of that was due to the merger between Case and IH, just a year after the 4894 rolled onto the market. Once the merger happened, the 94 series was scrapped because IH was already in a pretty strong partnership with Steiger. The remaining tractors were all painted red and rebadged as Case Internationals. Once they were gone, they were gone.

The ones on next week’s sale…

With tractors like the 4894, proper usage and preventative upkeep is definitely the key. If you’re looking at one on an auction or a classified ad, etc., check for service records. The key is to get the story.

…and that’s exactly what I did.

I called Clint Mullins, the man who owns these tractors. He lives just southwest of Williston, ND, just across the Montana state line. Until fairly recently, Clint and his son Zach farmed a fair amount of grain out there (wheat, I think?). They’ve decided to downsize their operation by a fair bit, and the team over at Musser Bros. is handling the sale.

At any rate, Clint told me that he bought the pair of 4894s in the late 90s to restore and use. He’s been completely through the tractors from stem to stern. Rebuilt both of the big Scania motors, been through the transmissions, differential, planetaries…the whole works. While he had them apart, he also repainted them IH red and re-decal’d them.

Once they’d been redone, they went to work on the farm. One of ’em pulled a 45′ air drill in the spring and served on grain cart duty during harvest. The other spent its life pulling a sprayer.

4894.3
This is the grain cart tractor. It’s tuned up a little bit from the way it left the factory, making about 360 horse. Click the photo to see the details and a bunch more photos!

The hours are accurate. The grain cart tractor has 3300 original hours, and it’s got a bit more grunt. Clint turned the motor up to about 360 horse. It’s got dual 20.8x38s on it and a full rack of front weights go with it. The sprayer tractor has 7600 hours on it, and he left it set at 300 horse. It also sports dual 18.4x38s, a nearly full front weight rack, as well as being outfitted with Trimble EZ-Steer!

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The sprayer tractor is set at 300 horse, and has a little less rubber under it, but no less capable! Click the photo to see the details and a bunch more photos!

What’ll they bring?

Honestly, I expect they’ll bring quite a bit. I checked our Iron Comps database for prices on the Case 4894, and of the few listed (they don’t change hands very often), they’ve been hovering in the $8-10K range. That said…these are a LOT nicer tractors, and they’re selling in area where these were well-regarded. If they don’t bring between $20-25K each, I’d be very surprised.

Will they set all-time records? No. The all time record is somewhere in the $45K range at least 10 or 12 years ago. But, for the “modern” era that we’re living in now, these will set a very high mark!

Well-maintained equipment sells, folks!

See the details on these tractors.

 

 

How the Case IH Magnum built a bridge…

Magnum 7130
Bidding wraps up on this one-owner, 7200 hour Case IH Magnum 7130 on August 6, 2020. Click the photo to see the details on this beauty!

I’ve written about the Case IH Magnum plenty of times before, and I’ll probably do it again, because there are a lot different angles to the Magnum story. It wasn’t that they were just great tractors; for many farmers, they still set the standard!

The process of merging J.I. Case and IH wasn’t exactly easy. With overlapping equipment lines, models on both sides were scrapped. It was a business move, but inevitably, feelings got hurt. Whether perceived or real, there was definitely a wedge between Case and IH employees (dealers too).

Everybody in the new company knew their future depended two things. America had to survive the farm crisis, and the Magnum had to be a big hit. The employees knew they had a really solid product; still, if either of those two things didn’t happen, those employees were going to be looking for new jobs in a time when new jobs weren’t real easy to get. When you’re fighting for your job, you tend to band together and bust it a lot harder.

The Magnum became the bridge-builder and put the “us” and “them” mentality to bed for Case and IH. They banded together because they had to, and built a tractor that America still relies on to this day. Hard to argue with that kind of determination, isn’t it?

This Magnum 7130 MFWD is a super-clean one-owner tractor with just under 7200 hours on the meter. It lives in Montana right now, and our friends at Pifer’s Auction & Realty are sending it home to a new owner on Thursday, August 6! Click the photo to go to the listing!

Browse Case IH Magnum tractors going to auction near you!
Fun Fact – The first Magnum off the line was a 7140 MFWD. Case IH worked it so hard that it was eventually scrapped. The 2nd one off the line? It was a 7130, and it still exists today!