The Ins and Outs of Farm Auctions

Like any other type of auction, farm auctions have their own ins and outs that both buyers and sellers should be aware of. There are a number of advantages compared to traditional sales, including the opportunity to purchase agricultural land, equipment, or livestock at below market price. As with other auctions, preparing is essential. However, when it comes to farm auctions, there are certain basics you need to keep in mind that are very specific to the auctioning of the land, agricultural equipment, or livestock.

Things to Consider

Auction Etiquette: At auctions, there is a certain procedure to follow, and certain conventions to observe. Making yourself aware of the basics of auction etiquette beforehand will considerably improve your first auction experience.

What to Buy: When looking to purchase at farm auctions, it is important to establish exactly what the auctions are selling and what you are looking to buy. For instance, some farm auctions will specialise in selling farm properties, while others might specialise in livestock, and others in agricultural equipment. You might even be able to find all three at a single auction, which can be highly convenient when wanting to expand your own agricultural operations.

Due Diligence: When attending any auction, you have to do some research. Begin by visiting the premises in person to make sure that everything is in order. Then ensure you research the current market value of anything you aim to buy, to avoid overspending. Make sure you set a pre-determined budget so that you do not end up being dragged into a bad purchase by an escalating bidding war.

Water and Weather: If you are buying agricultural land, it is important to look into the property’s available water resources, and the rainfall records for the area. If water is especially abundant on a property, sellers should consider increasing their opening bid to reflect this.

Amenities and Infrastructure: Be sure to explore any dwellings, crops, and even the scenery of the location to further get acquainted with the area, its vicinity, and other potential risks or opportunities.

Why Farm Auctions?

What are the advantages of purchasing farmland, livestock, or agricultural equipment through farm auctions rather than traditional sales? The most obvious answer is that you can often acquire these items at well below market prices when you are buying, and sometimes sell above market prices when you are selling. Attending an auction that sells all three can greatly simplify general procurement and drive efficient expansion of operations.

When buying, look out for liquidation auctions, as these often allow you to get exceptional bargains. When selling, the reverse can be true under the right circumstances, and sell your land, equipment or livestock for above market price.

Whether Buying or Selling

Whether you are looking to buy or sell at farm auctions, it is very important to find the right auctioneers. At Dynamic Auctioneers, we make it our mission to deliver competitive and efficient services while treating every client with the care they deserve.

Want to try a farm auction? Why not take a look at our upcoming farm auctions and all of our other auctions here.