# Hay Auctions



## Bgriffin856 (Nov 13, 2013)

Sold some firewood to a local guy who is just starting out in his career of being an auctioneer. His dad bought the old sawmill just down then road from us and he has had a few consignment sales which for starting out were pretty successful. He also has a small monthly consignment sale up in New York where he lives. He is licensed in both PA and NY. Anyhow he was asking me about having a livestock auction and converting the old mill buildings into barns and pens and building a new sale ring. I told him to check into it as there is more to it than one might think to make it a go.

So I mentioned to him he should start a hay auction as we have alot of horsey people and amish and hobby farmers around. Also there are no hay auctions around. I have never been to one so I don't know exactly what it takes make one work. So educate me on them so I can explain to him how they work


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## Lostin55 (Sep 21, 2013)

People bring in hay, which may or may not be good hay, which the auction folks unload or it is left on a trailer. It is advertised heavily. The auction charges too much commission, usually 8 to 9 % around here. They auction it off to folks that might be risky buyers, and some good ones. When the check clears they send the check to the consignor.

Wash , rinse, repeat on the same Saturday every month.


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## mlappin (Jun 25, 2009)

Auctions here start at 10am, I try to be there no later than 20 after 9. Leave your hay on the truck as you will be delivering it after the sale. Most is sold by the ton, by the bale just doesn't seem to pan out for the guys that didn't know they had to weigh it.

Anything over 10 miles away to deliver is $2.50 a loaded mile.

Auction cuts the seller a check immediately out of their own account and has sole responsibility of collecting on any bad checks from buyers. Commission is between 5-7%.


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## ARD Farm (Jul 12, 2012)

Like Marty said....

I've bought at hay auctions (by the bale, thats how it's usually sold around here, not by the ton)....

Most auctions around here require the seller to unload and stack their own bales, round's no.

All horsey gals here so green and damp brings the most money and auctioneer cuts are usually 3% except Napoleon, Ohio where the buyer pays 3% the seller pays nothing.

I buy with my Delmhorst only. Sellers hate me, buyers befriend me.... I usually get free coffee and a sandwich because most people (for some reason) have never seen or heard of a moisture tester.... (strange.....  )


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## rjmoses (Apr 4, 2010)

Auctions hereabouts are now going for 12% commission. Sold 50+ RB's at auction last year. I used that to get rid of excess quality hay that I wasn't feeding and used it as a price support for local sales.

Customer calls me--I said "These bales went for $.... last week at So and So's auction.

Ralph


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## NewBerlinBaler (May 30, 2011)

There are three hay auctions within 30 miles of my farm here in central PA. Every Monday, Tuesday and Thursday year round - unless those days are major holidays (like Christmas). One auction is hay & firewood (in season), the other two also sell livestock. They are always well attended. Commission is 5% at all three and comes out of the seller's cut.

As others have said, hay stays on truck or trailer and seller delivers to buyer. Typical delivery charge: first 8 miles free, then $2.50 / loaded mile.

I've sold at all three auctions. It's how I move most of my hay. Don't have to worry about the buyer's checking account balance --- the auction house's check is always good. I only make round bales, the buyer must unload.

Starting out with a hay auction is a good idea. You won't need any corrals or buildings. Just a gravel lot to park vehicles.

Gary


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## Bgriffin856 (Nov 13, 2013)

Thanks alot guys. That is the info I was looking for.

Might be a bit slow for him to get going as most people go through private sale and it may be tough to get guys to sell as alot around here expect top dollar for junk. But I do know there are a few that have a tough time selling their hay so this would be something that could help.

Most likely will sale by the bale as thats how hay is sold here


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## Chessiedog (Jul 24, 2009)

Couple around here one sales livestock and anything else you want to bring out in the parking lot . They sale by the bale , quarter per bale is the cost. You can unload it or leave it on ,buyers haul it home.

The other only has about 10 sales per year start in November till march 2 per month . I don't remember the commission . It's all by the ton ,leave it on you haul for them within 10 miles . Over that is between you and the buyer .


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## PaMike (Dec 7, 2013)

Might want to also try a time that works for the part time guy, like a Sat morning sale. All the hay auctions here are during the week and most working guys cant make it...


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## ARD Farm (Jul 12, 2012)

Last time I bought at Napolen, Ohio, 3 years ago when there was a shortage I bought rounds for a customer of mine (I couldn't supply enough hay, didn't have it).

I rolled in with a Western Star Convential and a 48 foot Talbert single drop with ramps.... All the people there with horse trailers and pickups kind of looked at me and wondered what I was about to buy...

Turns out I bought 10 whole rounds from the auction. All the rest (according to the Delmhorst) was bogus. That orange L shaped box never lies......

I second a Saturday AM auction time. Most here are.


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## Bgriffin856 (Nov 13, 2013)

Definitely will be a weekend auction as there are very few of any kind are during the week except the livestock auctions.

Thinking once a month all year would work out good


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## mlappin (Jun 25, 2009)

I won't attend the stack it in piles and leave it auctions, of course it's been years since I made idiot bricks but I know the one sale is still in operation. Just won't do it, once it was on the ground in stacks you had no say so about what it sold for, at least at the auctions I attend you can no sale if you don't like the price.


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## Bgriffin856 (Nov 13, 2013)

That would be something to consider and work out.

Maybe leave it up to the seller as to stack it or deliver it?


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## rjmoses (Apr 4, 2010)

I have had a couple of people here buying hay that I didn't want to sell. I like to wait until January so I can see what the market price is, but I didn't want to turn down a sale.

So I sold them the hay for what I was selling it last year and told them that I expected the price to go up. And I told them that we would settle up on the difference for a higher price, if any, after the first of the year when auction prices have been set.

I fully well expect one of them to maybe "forget" about this deal, but I'm covered for my minimum price.

Ralph


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## PaMike (Dec 7, 2013)

ARD Farm- Explain your moisture reading at hay auctions. I assume you are going to auctions "in season" when guys are beinging in fresh baled hay? By winter most of the water would be out of even the "green" bales.


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## Rodney R (Jun 11, 2008)

I saw a guy at a hay auction a few years ago with a moisture tester, and that was in winter. I couldn't figure that either. Of course I've got bales that still read 20, and I know they're good, but that hay will never see the sale.

Rodney


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## 8350HiTech (Jul 26, 2013)

If you're going to start a hay auction, I think you have to assume that you or the auctioneer won't be making any money for at least the first year. A small auction popped up near here two years ago. They were in an area that supplies a decent amount of hay to our large auction in Shippensburg. Problem was, the sellers weren't getting the money that they would at the larger auction (though they had less travel) AND they were charging 10% commission. Their reasoning (I asked) was that for as few loads as they were getting, that was the only way they could make any money. Not a good plan. Commission at Shippensburg is only $5/ton (which is a great deal when you're selling $200/ton hay, not so much when you're selling $50/ton hay) so even though travel time was longer for the sellers, it wasn't too hard to justify leaving the poorly attended little auction behind in favor of the longer travel but greater payoff of the big auction.

So, to get a good auction going, you'll need to offer a fair commission. Also, it would be a huge boost if you could get commitments for a certain amount of loads each time. If you have buyers show up to your first or second auction and there's one load of hay there, they won't be back.


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## Bgriffin856 (Nov 13, 2013)

Only problem I see is bringing in sellers. They might be skeptical to change from private sales. But I know there are some that have a hard time selling hay and some that im sure are tired of finding customers


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## IH 1586 (Oct 16, 2014)

Bgriffin856 said:


> Sold some firewood to a local guy who is just starting out in his career of being an auctioneer. His dad bought the old sawmill just down then road from us and he has had a few consignment sales which for starting out were pretty successful. He also has a small monthly consignment sale up in New York where he lives. He is licensed in both PA and NY. Anyhow he was asking me about having a livestock auction and converting the old mill buildings into barns and pens and building a new sale ring. I told him to check into it as there is more to it than one might think to make it a go.
> 
> So I mentioned to him he should start a hay auction as we have alot of horsey people and amish and hobby farmers around. Also there are no hay auctions around. I have never been to one so I don't know exactly what it takes make one work. So educate me on them so I can explain to him how they work


I'm told there is one in Meadville. I should check it out sometime to see what its all about.


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## Bgriffin856 (Nov 13, 2013)

Yeah I think there is one there. Im still kinda on the fence if one would work here or not


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## PaCustomBaler (Nov 29, 2010)

I believe you're right about the one in Meadville. I believe a saturday auction around 10am would work best. It gives the hobby farmers and horse folk a chance to get out on the weekends, and allows the dairymen to come out after milking. 95% of our hay sells privately, but we occasionally take to auction. The Lancaster auctions work well because there is an auction everyday of the week, but Shippensburg is also close to us and is available saturdays. Sometimes you fight to find a parking spot on saturdays at Shippensburg...up to 100-150 loads there.

Best of luck to you fellows. What you're trying to do is a good thing. As what mlappin said, takes his advice. Only sell loads on the vehicles/trailers.


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