Timeless Farm Machinery Auctions

It is more than a time honored profession. Farming all over the world requires dedication, diligence and integrity. With subsidies from major corporations like Cargill, Monsanto and Perdue, the need for farm machinery is increasing each year. The United States exports many agricultural products worldwide.

Perhaps it is time to replace a combine, tillage equipment or a tractor. Purchasing from an auction can be the most economical choice. If you are wise and you know what to look for in farming machinery, your dollars can take you a long way. These can be obtain from farm close out and/or retirement of the farming property. At times, some farm machinery can be obtained because of insolvency or the inability to pay their debts.
There are many auction houses that specialize in farming machinery. Choosing which to attend may involve traveling across the country. If the costs of travel are not too expensive, one can achieve great savings.

There are several types of farm machinery auctions. Both farm consignment and dealer consignment auctions that are generally held seasonally on a monthly basis or twice a year. These auctions are a great showplace for a wider selection of equipment. Farmers and dealers come together to specific location in order to receive a higher price for their merchandise.
Farm closeouts or retirement auctions may prove the best option for buyers. In this setting, a buyer may have the benefit of talking with the original owner regarding an item of interest. There are some consignment auctions that allow inspection of vehicles without the presence of the original owner.

The estimated life, physical life, and salvage value and depreciation value should be considered before purchasing. In some instances, the ASAE (American Society of Agricultural Engineers) Standard D497 may helpful. This documentation gives the physical, economical life based on hours and repair factors.
When attending a farm close out or retirement auction farmers are generally honest. They will usually explain the repairs made, and if the equipment was used primarily for hard work or lighter work. Still due diligence is required. It is best to check for leaks in the hydraulic, transmission systems. Examining the engine and interior for wear and tear can explain a lot about the condition of the equipment. It is also good to remember the cost of transporting the equipment back to the work site. Generally, transporting can cost anywhere from $2.00 to $3.00 a mile. Considering the cost of the equipment and transportation is an important factor.

Auctioneers can be unscrupulous. Some use ‘ghost-bidding’ to drives the sale of equipment up. Ghost bidding is when the auctioneer takes a higher bid from around the room (usually looking toward the back of the room). Other bidders are unaware there is no such higher bid.

Reserve auctions and absolute auctions are another option. Reserve auctions already have a set price for an item that the bidder is not aware of. Even though a bidder may be the highest bidder, the item may not be sold due to the set price. However, absolute auctions sell to the highest bidder in spite of the anticipated receipt.

Obtaining your first piece of farm machinery equipment from an auction is a thrill. Auctions can save you anywhere from 20% to 30% below market value. To get the best deal, it is best to do the necessary research that highlights the economic value, depreciation, and hours in service including the estimated life of the equipment for a successful venture.