Dairy Auctioneers BY JOSEPH KEEPHAYER National Auctioneers Magazine December 1989 Used By Permission CINCINNATI, Ohio If you are interested in auctioning dairy cattle, it is essential that, in addi tion to knowing the value of the livestock, you also understand the motivation of the people for whom you’ll be selling. That was the message of C. Sherman Allen and Howard J. Hammond, two of the speakers at the Agribusiness Council Work shop at the 1989 Cincinnati Con vention. “It’s an inept sale manager who determines all livestock auctions can be run on the same format,” said Hammond, a professional pedigree announcer and former sale manager from Corry. For example, the auctioneer should recognize that the farmer who is preparing for retirement has likely invested a great deal of effort in making every aspect of his operation a success. “You’re going to have to go the extra mile with this man,” Hammond said. “His cattle require a little more preparation, a lot more advertis- “vi*sL iMTOiprb a nnpn riAcv nm .j^y" AmJmJMLmJ Lflail JPMAJwV 1 FOR YOUR FARM? Let FARMER BOY AG. Discuss The Design And Cash Flow Of A Swine Barn To Meet Your Specifications ★ Call Us For information On Sow Units And 1,000 To 2,000 Head Finishers! ★ Production Contracts Available ing, a little better catalog. “When you go to the part-time fanner, the second-income farmer or when you’re working an auc tion that is lender-motivated, this man probably hasn’t been nearly as meticulous.” Hammond said. “In order to book that auction, you’re obviously going to have to get your pencil a little sharper. The lender is going to be very critical of what you charge for a commission. The farmer doesn’t want the extra hassle of having a fitting crew there 10 days before the auction, having a photography crew there two months before the auction, and having a lot of pre auction activity around the farm. In some cases, he may even be embarrassed about having the auc tion.” In the purebred business, club consignment auctions are very im portant to participants as a means of showcasing their livestock to the rest of the country. “In a consignment auction, you have to understand that your ex penses are going to be a lot high er,” Hammond said. “When you’re selling a 400-cow dairy and get the pace rolling, every 1200 HEAD GROWER AND FINISHER UNIT Exterior View Must Know Seller’s Motivation once in a while you can drop a cow off quickly to keep people awake.” That isn’t possible in a consignment auction, where each animal is individually owned. When you are selling pedi greecd cattle, you must be able to credibly present the pedigrees. “My work in the sale business is analyzing these pedigrees in a manner to accentuate the auction eer,” Hammond explained, “keep ing the auction moving ahead and, hopefully, getting a little money out of the cattle for the farmer.” There are a variety of ways by which you can learn of potential auction situations, but Allen be lieves one of the best is to stay in touch with lending institutions. “I keep in close contact with my Pro duction Credit Association and my local bankers,” the Conneaut Lake auctioneer said. “I know the loan officers. Every time I go by the PCA building. I’m in there. You have to get out there and know what’s happening in your community.” Where should the auctioneer and client hold their first meeting? “I prefer to go on that farmer’s farm immediately, so I know what We Ship UPS I’m getting into,” said Allen. “I subscribe to our DHIA magazine for Pennsylvania, and it tells me every herd average in the state of Pennsylvania—if the farmer’s on test. I go to that book and see whether he’s a 16,000-pound herd average or 12,000-pound herd average. Immediately, I can have a little indication about what kind of a manager he is.” Allen doesn’t pursue a commit ment from the farm operator until after he inspects the property and understands the reason for the auction. “I don’t pull out the con tract and want him to sign on the dotted line within the first couple of seconds,” the auctioneer said. “I like to go talk to the gentleman or the lady and see why they’re selling. Once I’ve made my per sonal appraisal, I can tell what kind of an auction I can conduct for that farmer.” Alternatives might include holding an on-site auction or mov ing the animals to another facility, Allen said. Another decision to be made involves whether to sell in side an existing facility at the farm, rent a tent or conduct the auction under the open sky. Swine & Poultry Systems Specialists FARMER BOY AG. INC. PH 717-866-7565 410 E LINCOLN AVE MYERSTOWN PA 17067 HOURS: Monday Thru Friday 7:00-5:00 Saturday 7:30-11:30 Lancaster Firming, Saturday, January IS. 1990-A35 Intel lew 24 Hour Service Your support staff is extremely important, Allen said, and you may want to consider the services of a breed association to assist with the auction. “The Pennsylvania Holstein Association will clerk a county club consignment auction and take care of all the paperwork for $lO a head,” Allen told the auctioneers in Cincinnati. “That’s in our area. Your area may be different In my opinion, I don’t want the head aches at a consignment auction for $lO a head, and I highly recom mend it* When it comes to ring person nel, Allen believes they can be as important to the success of the auction as the auctioneer. “A ringperson can set the cattle in for you and make your auction move along. They can keep the bidders’ attention and make sure you get back to them, especially if you have a large crowd. “I hire ringmen who I know buy cattle,” Allen said. “Basically, you guys might call them dealers ... If you have someone who you know has an order of cattle, it may pay you to have that person there. (Turn to Pago A3B)