A couple weeks ago I made a trip to the sheep and goat auction. Prices were good, as they typically are at this time of year.
People will sometimes ask me how to understand what’s going on at a livestock auction. This is a fairly common question for those who are just getting introduced to the market, and many people find themselves having trouble following exactly what’s happening.
So, in this post, I’m going to do my best to explain some of the basics about what to expect at the sale barn and how to understand what you see and hear.
Sale Barn Basics:
The Major Players:
Most livestock auctions are basically the same in the way they work and who you’ll see conducting the auction. These may all be separate people, or one person may fill multiple roles.
There will be someone who sets the price based on the current market. This person will usually set the price on the higher end of the scale, hoping to get someone to bite before backing off if they don’t get any bids. I’ll talk more about this process in a bit, when I talk about bidding.
There is also an auctioneer who calls out bids, indicating the current price and what they’d like to get for the next bid. This is usually done at a rapid pace with a very distinctive cadence. Auctioneers can be different in at least some minor way, meaning that it can take a bit of careful listening to pick up on exactly what they’re saying.
There may also be people who watch the crowd to help the auctioneer recognize when someone is bidding. Now, I’ve never been to a livestock auction with dedicated ring-men, the guys working the livestock through the ring will fill that role from time to time, if necessary.
There is also a clerk who records all of the information about the sale including if the animal was sold by the head or by weight, how much the animal weighed, the price it sold for, and the name of the buyer. The auctions in my area all have television screens on the wall that indicate all of that information.
Essential Terms:
Aside of the major players in the auction process, it’s also good to know some general terms for the auction. *If you want to see a detailed list of terms, please visit the link in the description below for the companion blog post to this video
Terms that apply across the board, regardless of what kind of animals you’re buying are:
Bred: meaning that the animal is pregnant.
Open: meaning that the animal is not pregnant.
Weaned: meaning that the animal is no longer nursing and is eating on its own.
Feeder/stocker: a young animal that is not yet full grown.
Worked: they’ve been vaccinated, wormed, etc.
Fancy: exceptional quality.
Hundredweight (CWT): price per 100lbs of animal weight.
By the head (HD): price per animal instead of by weight.
Registered/Papered: a purebred animal with documentation.
Gate Cut: a method of sorting animals. If you buy 10 animals “gate cut” that means that you buy the first 10 to go through the exit gate.
If you’re buying cattle, you’ll hear them referring using specific terms that pertain to cattle:
Heifer: a female that’s never had a calf.
Cow: a female that has had a calf.
Steer: a male that has been castrated.
Bull: a male.
You’ll also hear them refer to whether the cow is open or bred.
It is common for cows or heifers to have different colored tags on their backs that indicate what stage of pregnancy they are in. The tag will usually also have the approximate age of the animal on the tag as well.
There can be variations by region, but where I live blue indicates a 1st period cow, red is 2nd period, and green is 3rd period. A yellow, or sometimes white, tag will be placed on the back of bulls and open cows.
As I mentioned before, a number will often be written on the tag that indicates the age of the animal based on an examination of its teeth.
If an animal is older than 6 or 7 years old, you may see the letters “SS” or “BM” on the tag. Both SS and BM cattle are typically 7 years or older.
SS means that the cow’s teeth are intact and solidly fixed in its jaw but worn down.
BM means that the cow has missing, chipped, loose, or separated teeth.
Sheep and goats also have basic terminology as well:
Goats:
Buck/Billy: a male goat.
Wether: a male goat that has been castrated.
Doe/Nanny: a female goat.
Kid: young goat.
Buckling/Doeling: a young male/female goat.
Sheep:
Ram: mature intact male.
Ewe: mature female.
Lamb: sheep under 1 year old.
Wether: castrated male.
Sometimes you will see sheep or goats with paint marks on them. Those could be put there by the sale barn or the seller for various purposes such as sorting or quick identification.
Some auctions might ultrasound them to confirm if they are bred or not, and then mark them at based on the results. However, this is not a universal system and can vary. If the sale barn is marking the animals, they will usually have a sign that indicates what the markings mean.
Terminology for pigs:
Boar: intact male.
Barrow: castrated male.
Sow: female that has had a litter of piglets.
Gilt: female that has never had piglets.
Weaner: weaned piglets.
Auction Specific Slang:
There may be regional or auction specific slang that you need to listen for.
Not all auctions have their own slang, but some do.
Don’t be afraid to ask questions of other buyers that are willing to talk to you, or of the people that are working in the office.
How to Understand the Auctioneer:
By the Numbers:
Auctioneers talk fast, and it can be difficult to take it all in.
Try to just focus on the numbers and ignore the rest
The auctioneer will usually repeatedly say two numbers. The first one being the current bid, and the second number being the next asking price. It’s a good idea to visit the auction at least once to observe and get an idea of how things flow before you buy. You can also find lots of auction videos online to help you as well.
If you pay attention to the numbers, you’ll be able to determine a pattern of exactly how the auctioneer is calling the auction.
At livestock auctions, those numbers are usually by the hundredweight (CWT), especially in cattle auctions.
However, the easiest way to bring this down to a dollar per pound figure is to divide by 100. Simply put, if the price is set in a $355, just put a decimal after the first number to get $3.55. Have a calculator on hand if you need one to calculate final selling prices so that you have an idea of what things are selling for.
The Auctioneer’s Chant:
Every auctioneer develops their own kind of chant.
They will use filler words or phrases like, “can I get,” or “come on now,” or “dollar bid,” or “give me”.
The point of these filler words is to keep things moving quickly by creating a sense of urgency. Auctions thrive on the fear of missing out.
Don’t get me wrong, it’s not something nefarious or unethical. Auctions and auctioneers must operate within certain legal regulations in order to maintain the integrity of the bidding process.
However, if you’re new to the process, it is easy to get swept up in what’s going on and lose track of how much you’re spending. The auction barn is working on behalf of the seller and the goal is to get the best price possible.
You need to understand that if you end up with the highest bid, you are expected to pay. If you don’t, for whatever reason, you will likely be banned from bidding at that auction in the future.
That includes not knowing what was happening when you were bidding.
Bidding:
When you see something that you want, raise your hand, or make a motion to get the auctioneer’s attention.
Generally, a good auctioneer will make some sort of motion, whether that’s pointing to you or nodding their head to acknowledge your bid. Once they’ve done that they will start to look around for another bidder.
Once they have another bidder, they, or a ring-man, will likely look back in your direction to see if you want to bid again.
This can be pretty stressful if you’ve never done it before, but don’t worry and try to stay calm. A good auctioneer will recognize if you’re having a hard time following along and will slow down to make sure you understand what’s going on.
When you’re bidding, don’t be afraid to ask for clarification of where things stand if you get confused.
I’ll also mention that I’ve never seen someone accidentally bid by scratching their nose or wiping their forehead. Maybe that does happen in some places, but I’ve never seen it, so don’t worry too much about that.
Buying Livestock:
Set a Budget:
Before you go to an auction, set a budget and stick to it.
The most successful buyers at auctions are those that have a plan and follow it.
I read that people who go to auctions with a hard ceiling on how much they are willing to spend, usually spend 15 percent less than those who just show up looking to buy.
Of course, you have to know what the market looks like if you’re going to set a budget. This means that you should look up recent market reports or go to auctions for a couple of weeks to get a good idea of what current prices are.
You should also be careful about looking for “deals”. You usually get what you pay for at an auction. The price difference between good quality stock and poor quality can be much closer than you realize, especially if you have to start spending money to get an animal healthy as soon as you get it home.
Learn What a Good/Healthy Animal Looks Like:
Whatever kind of animal you’re looking for, gather as much information as you can about what a good, healthy one looks like.
Aside from general health cues, such as overall body condition, eye appearance, a clean tail or dirty tail, how well the animal is walking, etc. there are breed specific considerations as well.
Some breeds will have different confirmation standards than others.
Avoid Rookie Mistakes:
Don’t chase “good deals” or “hot lots.”
Trust your instincts.
Be patient, there’s always another sale.
Final Thoughts:
It’s a good idea to call and talk to the operator of the auction. They can give you an idea of what to expect and how the process works.
You can also find out what does the best at the auction and how to build a herd that will deliver what their buyers are looking for. A good operator will be willing to help you because that likely means a new customer for their auction services.