How Online Farm Auctions Are Transforming the Ag Industry

The Internet has slowly, and then not-so-slowly, been changing how we buy and sell goods and services—and farm auctions are no exception. While eBay was the first to shake up how farmers and dealers sold farm equipment, the pandemic caused major strides in establishing what are now well-known as online farm auctions.

Below are some of the ways in which these auctions have transformed the ag industry and what it means for you as you look to buy and/or sell equipment.

5 Ways Farm Auctions Have Changed After Moving Online

1. Saves Time

   You used to be required to attend in-person farm auctions if you wanted to purchase or sell tractors and equipment. Not only did this mean getting away from the farm for the day, but it also meant waiting through long bidding events.

   Today, online bidding opens anywhere from 3 to 5 days to 2 weeks before an auction, allowing buyers to make maximum bids early from the comfort of their own home, and sellers to sit back and wait for the final auction results.

2. Gives More Options

   By utilizing online farm auctions, you are no longer limited to a few pieces of equipment available at an auction but can instead browse dozens if not hundreds of listings online for new and used equipment.

3. Provides More Time for Research

   With equipment auction items being listed ahead of time, you have more time to research the equipment you want to purchase before making a bid. Not only that, but sellers share more pictures and information about their equipment online than they do for in-person auctions, due to the demand from online users and requirements of auction platforms.

4. May Mean Higher Prices in a Seller’s Market

   If there are more bidders participating in online auctions, it’s important to understand this may mean higher prices for the farm machinery you want. According to Marketplace, auctioneers say items go for as much as 50% more online than at in-person auctions. However, as a buyer, you have more options and price points to consider as you shop online, as well as the added convenience of bidding from home.

5. Higher Risk of Scams

   As you navigate digital farm auctions, be diligent about who you trust with your money and equipment. Often, farm equipment is priced higher than other items sold on auction sites, and that’s not something to handle lightly when bidding or selling.

   Here are some safety tips to remember for online auctions:

   • Find a Reputable Company. Ensure the dealer or online auction service you use is run by a reputable, experienced auction company. You can help determine this by reading about the company’s history and exploring their online reviews.

   • Read Their Terms of Use Agreement. Online platforms need to have a terms of use policy. Read through this agreement to make sure it’s something you’re comfortable with. If you have questions, contact them for more information.

   • Check for Secure Login. Auction sites should have secure logins before you can place a bid so your information is protected.

Ready to get started? Learn more about Fastline’s Auctions.