Producers are increasingly turning to auctions to acquire machinery as expanding online platforms, broader inventory access, and shifting equipment economics reshape the buying landscape.
To better understand this changing marketplace, AgDirect® surveyed more than 100 farmers and ranchers about their recent auction experiences. Their responses offer an inside look at how buyers are navigating today’s auction environment, what motivates their decisions, and how they are financing their purchases.
Auctions are now a primary buying channel
According to the survey, 75% of respondents have purchased farm machinery at an auction in the past two years. This represents a notable uptick from AgDirect’s 2023 survey findings, where 66% of respondents reported buying equipment at auction.
Producers are participating in auctions both in person and online, with a majority of respondents indicating they bid online. For example, BigIron, AuctionTime, Purple Wave, and TractorHouse were among the top platforms where respondents found listings. However, a strong response in the “other” category shows buyers also rely on a variety of local auction companies, combining regional knowledge with the broad reach of online listings.
Buyers are expanding their search radius
Another notable data point from the survey included the distance from where equipment was purchased at auction. The average purchase distance was 178 miles with some buyers extending their search up to 1,200 miles to secure the right piece of equipment.
While digital bidding makes long-distance participation easier, trust and verification still matter. Most respondents said they or a local contact inspected the equipment before bidding. Buying equipment sight unseen isn’t uncommon, but as fraudulent listings and online auction scams become more prevalent, it’s important to stay vigilant.
What farmers are buying at auction
Tillage equipment, tractors, planters, and sprayers were among the top types of equipment respondents purchased at auction, but the high response rate in the “other” category tells another interesting story. Based on the write-in responses, buyers are also using auctions to source trailers, skid loader attachments, hay equipment, trucks, semis, and other miscellaneous machinery and parts for their operations.
This insight reflects how auctions have become a go-to marketplace not only for big-ticket items, but for filling immediate operational needs or taking advantage of timely deals on smaller equipment and accessories.
Why farmers choose auctions
When respondents were asked what motivated an auction purchase versus buying from a dealership or via private party, the top three responses included:
- Cost-effective alternative
- Wider range of machinery for sale
- Low/limited inventories at time of purchase
In a market where pricing pressures increase the appeal of used equipment, auctions give producers a valuable outlet, providing access to a wider range of options not limited by geography as well as transparent pricing.
Although auctions offer clear advantages, survey respondents also cited challenges that can keep them from bidding. The top three factors hindering buyers from purchasing equipment at auction included:
- Prices went above market value/expectations
- Equipment quality questionable
- Lack of financing options available
How farmers are paying for auction purchases
In terms of payment, the survey results revealed most auction purchases were made using cash, followed by loans or lines of credit with few respondents indicating they applied for financing online.
However, the qualitative survey comments highlighted a gap between producers’ expectations and how financing is currently integrated into the auction ecosystem:
- “I’d love a standing loan amount I could take to auctions.”
- “A line of credit would be nice instead of using a high-interest credit card.”
- “More financing options through auctions would be beneficial.”
Some buyers mentioned passing on good deals simply because financing wasn’t readily accessible at the time of purchase. For lenders and auction partners alike, this represents a meaningful opportunity to better support buyers at the point of sale.
AgDirect offers competitive finance and lease options for farm equipment purchased at auction – both in-person and online. Along with attractive rates and ag-friendly terms, pre-sale credit decisions are available so you can bid with confidence.
