Farm Equipment Appraisals
Brumbaugh Appraisals appraises all types of farm and agricultural equipment and machinery quickly, and correctly.
We have the experience and expertise to accurately appraise farming equipment for all purposes including taxation issues, insurance replacement costs, balance sheet adjustments, the sale of a practice, mergers / acquisitions, donations, and lease termination residual values.
Whether your farm is a large scale operation, or family owned, our trained professionals can accurately and efficiently appraise your agricultural and farm equipment. We have experience appraising tractors, seed drills, mowers, plows, tillers, seeders, irrigation equipment, harvesters, balers, trailers and much more. View a summary of our Certified Appraisal Process.
Types of Appraisals
Desktop appraisals are the most cost effective type of appraisal. These appraisals meet the detail requirements for most farm machinery and equipment related purposes, except for banking considerations, litigation, and tax purposes. Desktop appraisals utilize client provided information such as manufactures name, model number, and other pertinent details along with photographs. The entire process is literally done from our desk using client provided information. The reporting for a Desktop Appraisal is virtually the same as a full Appraisal Report with the exception that we state the equipment has not been personally viewed or inspected.
An appraisal report is the highest level of certified appraisal and is completed using appraiser gathered data and photographs. This level of office equipment appraisal can withstand the scrutiny of litigation, banking / SBA loan requirements, and tax challenges.
Approaches to Value
While going through the appraisal process, we consider three approaches to value. The Income Approach, Cost less Depreciation, and the Market Data Approach.
• Market Data Approach – the market value estimate is predicated upon prices being paid in actual market transactions and current listings. Recent transactions are analyzed to arrive at a probable value.
• Cost Less Depreciation – this approach to value is conducted by determining the current cost of an asset and deducting for depreciation, functional and economic obsolescence, and physical deterioration. It is based on the principle of substitution, which states that a knowledgeable buyer will not pay more for an asset than the cost to produce a substitute asset with the same utility.
• Income Approach – the Income approach considers future revenue streams to derive a present value. This approach is often difficult to implement, given that revenue streams cannot easily be itemized for individual items. However, in some circumstances this approach is very applicable and can be implemented.
We are highly qualified and experienced
All appraisal partners are Certified Machinery and Equipment Appraisers (CMEAs) with experience in the farm equipment industry. Our team of appraisers is knowledgeable in the items being appraised and current with their appraiser certification credentials. Final reports are always reviewed by Robert Brumbaugh who is a Master Certified Machinery and Equipment (MCMEA) appraiser. Bob is one of 32 MCMEA’s out of the nearly 550 affiliated appraisers around the world.
If you need an appraisal for purchasing previously owned farming equipment or buying out an end of lease purchase, Brumbaugh Appraisals can provide Fair Market Value estimates for those items. Selling your farm? A certified machinery appraisal provided by our team can help ensure that you receive top dollar for the equipment of interest. Farming equipment can have various values depending upon the condition, age, upgrades, and other considerations. While the value of previously owned farm equipment might seem difficult to determine, our experienced and professional team can give you an accurate and defendable estimate of value at a fair price.
If you have questions or would like to discuss an equipment appraisal in more detail, please call us, email us, or send a request for more information.