Second hand farm machinery sales at Cheffins in Ely are double last year
PUBLISHED: 10:16 17 July 2017 | UPDATED: 10:16 17 July 2017
Machinery sales are proving profitable for farmers as Cheffins on site machinery auctions top £4m in six months.
A cocktail of doubts over the profitability of farming enterprises, rising costs of new machinery and favourable exchange rates have led to an increase in on site sales hosted on behalf of farmers in 2017.
This increase is double the number of sales in the same period from last year.
Bill King, chairman of Cheffins, said: “Many of the sales conducted in the past six months have been complete dispersal sales following the farmer’s decision to retire and to enter into contracting arrangements.
“We have had other farmers who are re-structuring following changes to farming policy and we have seen an increase in those reviewing or bringing forward retirement plans as a result of faltering profitability.
“Whilst commodity prices have improved, this has been countered by increasing input costs and this, coupled with the increasing costs of new machinery, has had a knock-on effect on the demand for second-hand equipment.
“Just as input costs have risen due to a weaker pound and more expensive imports, export trade has been strong which has seen a sharp rise in the levels of second-hand machinery exported to Europe.
”This is affecting supply and we are now seeing intense competitive bidding for the best stock on offer.”
Bill King continues: “We have seen an increase in the numbers of farmers turning to on site sales as they come to realise that auction is the most profitable way to dispose of machinery and buyers looking to acquire good quality second hand kit as an alternative to buying new.
“We have over 20,000 buyers on our books from both the UK and abroad and the competitive nature which the auction process encourages can help to increase prices achieved.
“We have seen strong prices including £116,500 for a 2015 Claas Lexion 620 Combine Harvester and £104,500 for a 2013 AMAZONE Pantera 4001 self propelled sprayer.”
Cheffins Cambridge Machinery Sales has also seen a similar trend with increased turnover in the first six months of the year from £15,800,000 to £18,000,000.
Bill King says: “It is not surprising that this trend is also being seen across our Cambridge Machinery Sales as trade to Europe has been particularly strong in the past six months.
“Since the Brexit vote some 12 months ago, with the resulting devaluation of the pound we have seen many new and returning overseas purchasers attend the monthly auctions, and their increased buying power has certainly boosted sale results. “