What is a farm equipment / agricultural equipment appraisal?

A farming or agricultural equipment appraisal provides an accurate valuation of vehicles, machinery, or other equipment used for farming or agricultural work.

This valuation takes all aspects of the equipment into account, such as its make, model, age, condition, operating hours, specifications, and modifications. Factors such as the original cost of the equipment, the income it generates, its depreciation rate, and its market supply and demand are also taken into consideration to determine its current value with the highest possible degree of confidence.

A farming or agricultural equipment appraisal is conducted by an accredited appraiser and can be used to facilitate financial planning, estate planning, and insurance agreements. The appraiser is also qualified to defend their valuation in a court of law if needed.

What kinds of farming and agricultural equipment can be appraised?

A farming or agricultural equipment appraisal can determine the true value of any vehicles or machinery used in agricultural settings. Commonly appraised items include the following:

• Tractors
• Combines / harvesters
• Plows
• Harrows
• Cultivators
• Transplanters
• Seeders
• Fertilizer spreaders
• Sprayers
• Irrigation systems
• Balers
• Mowers
• Rakes
• Crop processing equipment
• Crop storage equipment
• Livestock equipment
• Milking equipment
• Wagons and trailers
• ATVs / UTVs
• Trucks and other road vehicles
• Backhoes and loaders
  

What happens during a farm equipment / agricultural equipment appraisal?

A farming or agricultural equipment appraisal is a well-regimented process consisting of several distinct steps.

1. Pre-Inspection Planning
   The appraiser speaks with the client to determine the scope, purpose, and intended use of the appraisal. The appraiser also identifies any standards or regulations that apply to the appraisal and gathers any relevant documents, such as a list of equipment and their histories.

2. Inspection
   The appraiser inspects the equipment, gathering essential information like its make, model, age, condition, and usage history. The inspection is often conducted in person, but it can also be done virtually via a desktop appraisal.

3. Market Research
   The appraiser gathers market and industry data to determine the current supply and demand dynamics for the equipment. They consider factors such as industry trends, technological advancements, and the availability of comparable items in the market.

4. Data Analysis
   The appraiser applies appropriate valuation methods to determine the value of the equipment. They may study recent sales prices of similar equipment, calculate the revenue the equipment generates for its owner, or estimate the cost of replacing the equipment with a similar item.

5. Adjustments
   The appraiser makes adjustments to their valuation to account for factors such as equipment condition, age, and market fluctuations. This fine-tunes the valuation to reflect the equipment's unique characteristics.

6. Appraisal Report
   The appraiser prepares a written report summarizing the data gathered, the appraisal methodologies used, and the conclusions and opinions reached. This document provides a comprehensive assessment that can be used for a variety of purposes and is legally defensible.

Reasons to get a farm equipment / agricultural equipment appraisal

How long does the appraisal process take?

The time required to complete an appraisal will vary depending on the quantity and complexity of equipment. However, most appraisals can be completed within 1-2 weeks. Desktop appraisals can usually be completed much sooner, while appraisals that require extensive market research or travel to remote locations can take longer.

Are on-site inspections necessary for every appraisal?

While on-site inspections are ideal for accurate assessments, desktop appraisals can be conducted using information you provide about the equipment. A desktop appraisal may be appropriate if it would be difficult or very expensive for the appraiser to inspect your equipment in person. Read more about desktop equipment appraisals.

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How often should you have your farming or agricultural equipment appraised?

The frequency with which you should have your equipment appraised will depend on a number of factors, including the type of equipment, its age, and its condition. However, as a general rule of thumb, it is a good idea to get your equipment appraised every 3-5 years. This will help ensure that you have an accurate understanding of the value of your equipment for insurance, financing, and other purposes.

How much does an appraisal cost?

The cost of an appraisal may vary greatly depending on the amount and complexity of the equipment that needs to be valued. As such, we typically refrain from giving an estimate prior to consultation in order to not set unrealistic expectations. However, we can assure you that the cost of conducting an appraisal pales in comparison to the gains that can be realized using accurate valuation information. Read more about the costs and fees associated with equipment appraisal.

How do I know my appraisal will be accurate?

Appraisal-Masters appraisers are highly experienced and accredited as Master Certified Machinery and Equipment Appraisers (MCMEAs) through the NEBB Institute. We pride ourselves on thoroughness and accuracy, conducting in-depth market research and taking multiple appraisal methods into account before delivering a final valuation.