On-farm machinery auctions grossed over £10m in 2017 as the agricultural industry battles its way through an uncertain period.
According to auctioneers Cheffins, 40% of its on-farm sales have been on behalf of farmers looking to change their farming policy to increase their finances amid an uncertain period for the industry.
The figures also show 20% were due to farms being sold or let, and another 20% followed as a result of natural retirement from farming. The remainder due to cessation of business or ill health.
Oliver Godfrey, Director, Cheffins comments: “Activity for on farm sales has more than doubled this year with nine sales taking place throughout 2016 and eleven in 2015.
“Prolonged periods of low commodity prices combined with the vast growth of agribusinesses and large contracting outfits swallowing up work has led to retirement plans increasingly being brought forward by farmers across the UK which has directly increased the volume of on farm sales.
He adds: “Changes in farm policy, such as putting more land across to contractors or changing the output of the farm, has boosted the need for dispersal sales, and farmers grasp the auction method as the easiest way to generate the highest prices for surplus items.
“Whilst there are increasing numbers of farmers selling up, we have also seen an increase in prices for second-hand machinery as the market looks to cut costs and pick up high quality kit without the price tag of something new.”
Cheffins says it forecasts an increase in on farm sales in 2018 as Brexit negotiations create further uncertainty within the industry.
