Markets for Tractors

More and more farmers are using online markets to purchase farm machinery. A UGA agricultural and applied economist explored the determinants of price for tractor auctions on eBay and tractors that are listed on more traditional markets like the Farmers and Consumers Market Bulletin (FCMB) in Georgia and compared the outcomes of each market. Results suggest that seller feedback rating does not influence price while engine hours and the presence of air conditioning are negatively and positively related to price, respectively. Individuals that list tractors on eBay receive higher prices on average than dealers. In addition, tractor auctions that result in a sale on eBay on average do not exhibit prices different from those tractors that sold on FCMB. Traditional markets such as FCMB in Georgia are still widely used. However, one-on-one matching suggests that in several cases there may be opportunities for farmers who list on FCMB to get prices that are equal to or even higher than their lowest acceptable price if they list their tractors on eBay. Online auctions appear to be favorable for farmers who sell farm machinery.