BigIron Co-Owner, Mark Stock, discusses how putting off your farm retirement auction could cost you money in the long run.
Many farmers who were thinking about retiring from farming in the next year are now rethinking that decision. With the current price of commodities, they’re contemplating sticking it out one more season.
Commodity prices are high right now and farmers are getting more for their crops. That said, we have no idea what commodity prices will do next year, and this strategy could backfire on you.
The old adage is the cure for high prices is high prices. In situations like this, we often see that the industry will overproduce, and then prices will crash. A year from now we might see corn back down to $3.80 – $4.25.
Farm Retirement Auctions
Whenever a farmer decides to retire and sell off their valuable assets via farm retirement auctions, they want to get the most money back for their land and equipment.
The scarcity of equipment is causing a large demand for used farm equipment by buyers who aren’t able to purchase anything new for a period of time, creating the perfect scenario if you want to sell equipment or are contemplating retirement and selling off farm assets as a source of retirement income.
"I was very satisfied with the auction results, and it far exceeded what I thought I was going to get..."
-BigIron Retirement Seller Ken Eidenmiller - Weeping Water, Nebraska
The time to sell is when prices for land and equipment is high, much like it is right now. We are seeing more and more traffic to our online auctions, which presents a big opportunity for retiring farmers looking to net a much higher sales price. This increase in traffic translates to more bids which will provide a bigger return and put you in a better financial position.
If you are unsure and wavering about retirement or recently made the decision to stick it out for one more year due to optimism in the ag market, you may reconsider. There is no guarantee that prices will remain high.
Liquidating your assets now when buyers have more money in their pockets might be the smart move.
Cover photo credit: Sergio Souza from Pexels