Auctioneers Adapting to Coronavirus Restrictions
Published: Friday, March 27, 2020
With the governor's order to remain at home, Indiana auctioneers had some critical decisions to make in light of that and other restrictions. Some are moving forward with changes, while others have decided to postpone their auctions until the situation improves.
The owners of livestock auction markets in Shipshewana and Topeka issued a joint statement last week in which they stated their intention to remain open during the coronavirus outbreak. However, in noting the unique time that we are in, the market owners said they will limit the number of people allowed in the auction arena to 50 or less. They also are discouraging parents from bringing their children, and buyers are encouraged to exit the arena once they make their purchases.
At the Topeka auction, owners Rick and Andrea Welsh made the rare decision to postpone the popular draft horse auction that was scheduled for last week. It has been moved to April.
Jim Lestinsky, owner of Lestinsky Auction Service, said they went ahead with an auction last Saturday, despite the uncertainty. He noted that the situation changed dramatically between last Tuesday and Friday, as state and local leaders provided more guidance on public events (see related articles).
According to Lestinsky, most auction-goers were understanding of the circumstance. Nevertheless, he said that last Saturday's auction may be the last one he conducts for a while. He has decided to postpone auctions until May, or until the situation "cools down."
Faced with the same decision, some auctioneers have moved to online bidding. While online auctions have their place in the industry, Lestinsky, who said he has "dabbled" with online bidding, said he is a firm believer in the live auction format. He said live auctions have a social component that entices people to bid.
Lestinsky said this situation couldn't have come at a worse time for the auction industry, as farmers are looking to buy land and equipment in preparation for spring planting.
"This is the peak of the auction season right now," he said, adding that this is a trying time for local auctioneers and their clients. "We just hope that things will be better in May."
Phil Hahn of Hahn Auctioneers Inc. said he conducted a farm sale Monday night, which was attended by 60 to 70 people. Hahn said hand sanitizing fluid was provided and all participants were urged to stay 10 to 15 feet away from each other.
Hahn's auctioneering firm is moving forward with sales held outside, while postponing indoor events—until the situation returns to normal. He said he is not placing limits on the number of people who can attend, but he and his staff are vigilant about social distancing for auction participants.
While Hahn was pleased with the results of Monday's auction, he said the guidelines from state and federal authorities are very fluid and could change in a week.
One reason Hahn cited for moving forward with outside events is the urgency of the spring planting season. Many of his auctions feature land and farm equipment, both of which will be needed by farmers during the next few weeks as they enter the fields to plant crops. If those auctions were to be postponed for a month or longer, farmers wouldn't have all the tools they need to get started, he said.
On a positive note, auctions that feature cattle are seeing increased buying interest, providing a boost to sagging market prices. Keith Lambright of the Shipshewana Livestock Auction said the market is responding to higher demand as panic buying sets in at supermarkets. Instead of eating at restaurants, people are purchasing steaks and other meats to stock their refrigerators and freezers at home.
This week, Reuters reported that North American meat processors are paying extra money to farmers to supply products that are in high demand. Tyson said it would pay farmers a one-time premium on cattle slaughtered this week after facing objections over the company's soaring profits. Tyson declined to disclose the size of those payments, but cattle producers say the premiums are $5 per hundredweight for live cattle and $7.94 for dressed cattle.
According to Reuters and HedgersEdge.com, margins for U.S. beef processors hit a record high of about $580 per head of cattle on Monday, up from about $170 a week ago.
Cargill, another beef processor, said it will pay U.S. and Canadian slaughterhouse workers a premium of $2 per hour until May 3, with a bonus of $500 to those who complete weekly shifts over a period of eight consecutive weeks, the company said.
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