Strong demand for machinery leads to a strong trade at sales
The popularity and prices for second hand machinery at farm and machinery sales have reached an all-time high due to the many impacts of Covid-19 and now the Russian invasion into Ukraine.
Covid-19 meant that imports of machinery and equipment into the UK slowed nearly to a standstill with some dealership waiting lists being nearly as long as 18 months.
With less and less new machinery coming into the UK, farmers and dealerships alike were having to give higher prices for what was on offer when it became available.
Where older and broken parts of machinery also benefit, is with the current price of scrap being over £250 per tonne showing that where manufacturers would have been relying on imported steel, they are now relying more on the home market and putting some real buying power into scrap merchants for good quality scrap.
Recently this has amplified with the Russian invasion into Ukraine resulting in sanctions on Russian oil and gas meaning that steel manufacturers worldwide are now feeling the strain.
Manufacturing costs of production being increased dramatically whilst trying to make the parts and equipment needed to supply farmers worldwide.
It may not seem like it, but both these factors invertedly play a part on a sale day, with farm dispersal and collective machinery sales now being realised as the traditional marketplace which benefits buyers and sellers alike as they always have been.
Henry Hyde is graduate rural surveyor and auctioneers at Halls
