Used Tractors: A Market on the Rise – And It’s No Surprise!
In today’s article, we’ll explore how the market for used agricultural tractors has developed in Italy and Europe. We’ll look at where and how to buy second-hand machinery, the numbers that show its growth, and the reasons behind this trend, which reflects the ongoing evolution of the agricultural sector. Keep reading!
In 2024, the European agricultural tractor market saw a noticeable dip compared to the previous year, according to the regular reports from CEMA (European Agricultural Machinery Manufacturers). However, there’s one area that continues to thrive: the used tractor market. In Italy, new tractor registrations have dropped significantly, from 24,385 units in 2021 to just 17,613 in 2023 – the lowest point in the past decade. This stands in stark contrast to the steady growth of the used machinery market. In fact, in 2023, more than 70,000 tractors were registered, with about 17,600 being new and nearly 52,800 being second-hand. That means for every new tractor, about three used ones were sold. While the new tractor market shrank by 13% compared to 2022, the used market grew by 8%, continuing a positive trend that has lasted over ten years.
The Used Tractor Market Across Europe
While Italy has seen consistent growth in used tractors, the trend is even more noticeable across Europe. In countries like Germany, France, and Austria, for every new tractor registered, around four second-hand tractors are sold. This is due to the high cost of new tractors and the availability of high-quality used machines coming from large agricultural companies that regularly update their fleets. In Spain, the ratio of used to new tractors is slightly lower but still significant, with around three used tractors sold for every new one. Small and family-run farms often can’t secure financing to buy new machinery, but they can still access good-quality used equipment. A particularly interesting case is Turkey, where used tractors in 2023 outnumbered new ones by almost four times, with nearly 324,000 units sold. The Turkish agricultural sector is largely made up of small farms with limited access to credit, making used tractors a more affordable option.
Italian vs. European Used Tractors: A Difference in Quality
The quality of used tractors varies widely across Europe. In Italy, second-hand tractors tend to be older compared to those from countries like Germany or the Nordic regions, where used tractors are typically between 5 and 10 years old and are well-maintained. These machines are high quality but also come with a higher price tag. In Italy, the most popular used tractors are those with between 25 and 75 horsepower – the same range that sells the most in the new tractor market. Prices can vary a lot depending on the region, though.
Why Has the Used Tractor Market Grown Over the Years?
The growth of the used tractor market is mainly due to a decline in agricultural incomes. In 2023, Italy saw a 0.6% drop in agricultural income, while the EU as a whole saw a 5.3% decline. Rising production costs and high interest rates have made buying new tractors more difficult, while used equipment remains a more accessible option for many farming businesses.
Outdated Machines and Low Fleet Renewal
In Italy, the average age of used tractors sold often exceeds 20 years. This leads to lower efficiency, higher emissions, and more wear and tear. The lack of technological renewal also slows the adoption of modern farming techniques like precision farming, which hurts the competitiveness of farms.
Why Has the Used Tractor Market Grown Over the Years?
To boost the new tractor market, long-term, stable incentives would be needed, as well as a well-structured subsidy system. Programs like Credito 4.0 and Isi funding have helped companies renew their fleets in recent years, but new regulations are limiting access to certain types of machinery. A crucial next step would be to introduce mandatory inspections for agricultural machinery, a law that was proposed back in 2012 but still hasn’t been implemented.
Excessive Wear: Quality of Used Tractors Declining
One of the major issues in the used tractor market is the excessive wear on the machines, which reduces operational efficiency, increases maintenance costs, and harms the environment. In some markets, the shortage of newer used tractors forces farmers to buy older machines, which results in both economic and environmental drawbacks.
Used Tractors: Not All Bad (If They’re Well-Maintained)
Used tractors, if relatively recent and well-maintained, are an essential solution for many farming businesses. However, it’s important to choose tractors that have been thoroughly checked and come with a guarantee. Buying through trusted dealers and auctions gives buyers the opportunity to pick well-maintained machines, and having access to solid after-sales support is also key.
Second-Hand Equipment and Auctions
Auctions provide an excellent opportunity to buy used tractors in good condition. The tractors sold at auctions mostly come from agricultural entrepreneurs, contractors, and, to a lesser extent, dealerships. Auction organizers inspect the machines and provide comprehensive details, including photos, videos, and technical specifications, so buyers can make well-informed decisions. The used tractor market is growing, and it’s a vital resource for the agricultural sector. Even though new tractor registrations are down, used tractors offer an affordable and practical option for many farmers. By carefully selecting well-maintained and guaranteed machines, farmers can make secure and cost-effective purchases. Stay tuned for more insights and updates on the world of used tractors!
