A question I get asked quite frequently during my farm renewal appointments is, “Should I increase the insurance values on my tractors and equipment?" In almost every case, the answer is definitely YES!!! Farm equipment, especially tractors, has seen a tremendous increase in value over the last 2+ years. In fact, some articles I have read in various farming publications have stated as high as a 44% increase in value during this time period. By not having your farm tractors and equipment insured to value, an untimely claim could not only leave you short a tractor, but also potentially create a significant financial bind to try to replace it!
For those that don’t know me, I am a die-hard John Deere guy! No offense to my Case IH, Ford New Holland, Kubota, and other tractor manufacturer friends, but as the saying goes, “I bleed green.” Throughout my family’s years of farming, we have had quite a few John Deere tractors. My favorite tractors by far are the John Deere 4020 and the John Deere 4040. These two particular tractors have seen incredible increases in value over the years. The 4020s were manufactured from 1964‐1972, with a cost new in the $10,000 range. The 4040s were manufactured from 1978-1982, with a cost new in the $27,000 range.
Needless to say, anytime I see either of these tractors in upcoming sales, I try to either attend the sale or watch it online. Over the last few months, I’ve seen close to a dozen 4020s sold, ranging from original, good working condition to completely restored. The prices have ranged from $15,000 up to a completely restored 1970 diesel wide front that sold last weekend in Newville, PA for $30,000! The same goes for the 4040s. I’ve seen dealers advertising good, clean original low hour 4040s in the $35,000+ range. In fact, last fall at a sale in Keymar, MD that I attended, an open station, very low hour 4040 sold for $40,000. At another online farmer retirement sale earlier this year in Ohio, a 1980 John Deere 4040 with full cab and only 2,187 hours sold for $54,950! No matter the manufacturer, record tractor sale prices are being recorded almost daily!
Now is the perfect time to review your equipment insurance values with us. The rate for scheduled equipment is the lowest on your farm policy! Farm equipment values can be changed anytime during the policy term. Now is the perfect time to make sure your equipment schedule is accurate and insured to value. Just take a few minutes from your busy day to review your insurance policy’s scheduled equipment list or give us a call to discuss the coverage. This simple step could you save you thousands of dollars at the time of a claim.
You spend your life dedicated to your farm. Let’s work together to make sure you are properly insured going forward. Reach out to Ryan Wiles today to learn more.
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