Statement_of_Work_Purchase of Machinery Equipment Valuation Data.pdf

Salient Characteristics Economic Research Service

Purchase of Machinery Equipment Valuation Data

Objective

U.S. Department of Agriculture (USDA) Economic Research Service (ERS) Resource and Rural Economics Division (RRED)

The Economic Research Service is a Federal agency within the US Department of Agriculture (USDA) which provides agricultural economic research for both governmental and non-governmental stakeholders. Within ERS, the Resource and Rural Economics Division (RRED) conducts research on conservation, agricultural production, technology adoption, and the rural and farm economies.

USDA is seeking to understand the impact of government payments, crop insurance, and macro factors such as interest rates on the equipment market. Analyzing the total market value for equipment purchases provides clarity into how these factors influence buying decisions. This comprehensive view bridges the gap between collected survey data (USDA) and the values and equipment financed data offering deeper insights into market dynamics and regional investment behaviors.

RRED researchers produce various reports and research papers, including research on farm input markets and farm debt. RRED researchers need access to external databases, including time series data on farm equipment and machinery purchases to understand the fundamentals driving input markets and how changes in equipment and machinery values impact the farm operation’s balance sheet and reported capital expenditures.

ERS’s main objectives for this data purchase is to conduct in-depth analysis of how equipment and machinery valuations impact reported capital expenditures in USDA data, and the influence that external factors play in price movements in these markets. These external factors include changes in financing costs, commodity cash receipts, and government payments.

Requirements

The contractor shall provide the following:

• Quarterly historical data for wholesale, resale agricultural equipment and machinery values, disaggregated by geographic region (for years 2008 – 2024).

o Summary guide of all Iron values from 2008 o Breakdown by US regions (Southwest, Southeast, Northwest, North central)

Must Include:

Data Attributes Data Description Issue Name Describes the season and year associated with the Iron

Guide

Quarter Quarter within the Issue Name Region Description The name of the region.

Published Date Date that the values were published Equipment Type Equipment type - Tractor, combine etc.

Equipment Make Manufacturer name Model Model name Year The model year of the equipment Average Wholesale The average of wholesale prices from a variety of sources. These sources can include estate auctions, dealer inventory liquidation auctions, dealer to dealer wholesale transactions, and as-is auctions. This price is a guideline for checking the liquidity of a unit if farmers find it necessary to dispose of it at an auction or other wholesale means. This value is normally used by manufacturers and financial institutions as the loan or floorplan amount

Trade Rough The price is to be used as the trade value when taking on trade a unit that has been used roughly, not serviced regularly, and/or has not been stored inside.

Trade Premium This is a quick reference trade value. It is Resale Cash Price less the allowance for Reconditioning /Work Order and 7% gross profit margin.

Resale Cash This price is a reference point for the cash value of the base unit, after reconditioning / work order. To determine total value, adjust Resale Cash for options and hours. It does not take into account the added dealer costs of offering interest free financing, extended warranty, etc.

• Quarterly historical data on total volume of new and used equipment and machinery financed.

o Quarterly data of financed equipment to estimate the total quantity of Ag equipment types by state from 2008 to current o Only Iron equipment codes o Totals must be broken out by New, Used, Status: Sale, Lease, Rent

Must Include

State Buyer’s state Category Equipment category Total Count of all equipment New Count of new equipment Used Count of used equipment New Sale Count of new equipment sold New Lease Count of new equipment leased New Rental Count of new equipment rented Used Sale Count of used equipment sold Used Lease Count of used equipment leased Used Rental Count of used equipment rented Regions Activity stratified by region

• Estimated capture rates of all equipment in the Uniform Commercial Code filings.

Must Include:

Equipment Codes Equipment classified by code Equipment Description Machine type Estimated Capture Rate Estimated capture rate of UCC filings