"Auction Method Measure of Current Trends During Transitioning Farm & Ranch Markets"
It has been well known in the farming and ranching industry for years that auctions can be a vital barometer of the current rural economic market conditions. The public auction of rural real estate, agricultural equipment and livestock has become a mainstay in farm and ranch communities across America. Most often, auctions are well publicized events that both buyers and sellers have come to recognize as being a fair, transparent and expedient method for finding current market value of an asset.
Due to the unique nature of the auction process, did you also know that a well planned and executed auction event will deliver much more data than just the current fair market value of farms, ranches, equipment and additional assets associated with the auction? 
Auction events provide performance indicators that allow land professionals to evaluate the current health and condition of the rural marketplace. With this information we can forecast, with some sense of accuracy, the current economic trends, direction and at what speed various rural markets are transitioning, Auction professionals make decisions by engaging with the market place, assessing both the current data received and comparing to historical trends.  Key market indicators which are derived from an auction event may include: (number of attendees, active participation vs a sideline observer, bidding aggressiveness, cash vs. finance) as well as several other elements that become apparent to seasoned auction professionals.
Market segments are transitioning up and down all the time. The agricultural farm and ranch sector has experienced significant appreciation in the marketplace over the past few years.
During this current market transition period, auctions will be leveraged as a measuring stick to track property values, current market conditions (positive and negative), trends,  as well as create movement (or motion) in the disposition of production cropland and pasture. Historically, downward trends in the agricultural sector have a tendency to slow or stall the amount of real estate transaction exchanging hands, however “Auctions Create Action” in the marketplace and force a market response.  During a period of continued upward valuation trends auctions bring a sense of urgency and hence create a competitive environment among bidders driving prices higher. A well-attended and well executed auction event will produce a realistic market response despite the direction that the markets are moving.
Mason & Morse Ranch Company is well equipped as one of the premier farm & ranch real estate and auction organizations in the country producing industry leading auction events for our clients.  For more information about our auction services, please contact us today. “We Live it to Know it.”
Author: Shawn Terrel, Lead Auctioneer, Mason & Morse Ranch Company.