There’s More to Livestock Auctions Than “Sale Day”

While the sale of livestock is a key component to a livestock auction, there is more to be uncovered about what these businesses do.

When thinking about a livestock auction market, what do you think of? It is likely you imagine the sound of the auctioneer, cattle moving through the ring, farmers and ranchers catching up on the latest news and enjoying homemade foods in the café. While all of those things are true, and part of what makes them an iconic image of the industry, there is much more to what happens under the “roof” of your local livestock auction.

Livestock auctions have created competition and transparency in the marketplace for decades. Their development was a turning point in the industry, giving farmers and ranchers greater access to marketing options and information to benefit their operations. The competition created by bringing multiple buyers and sellers together drives what is referred to as “true price discovery” and pushes the value of an animal to true market value and often higher. That’s something that alternative marketing options can’t promise with only one buyer at the other end of the transaction.

The relationship and communication between livestock auction operators and their producers are key in making sound marketing decisions. To help in daily operations, farmers and ranchers can seek additional services with livestock auctions, such as value-added programs, educational seminars and readily available market expertise. Many auction owners visit their customers’ operations to discuss the best opportunities and times to sell, as well as ways to achieve a more market-ready animal. After all, quality and consistency help drive buyers to the seats of an auction and work done outside of sale day by the cattle producer and the auction market helps to ensure a healthy demand.

It is often overlooked that your local livestock auction is also a local business, taxpayer and employer in their community. A 2023 economic impact study, conducted by the Livestock Marketing Association (LMA), found that livestock auction markets continue to be important for the growth and vitality of rural communities. The study of an average, fixed-facility livestock auction market revealed that the market provides approximately $2 million in total value-added dollars to its local community. Key findings also revealed that the market studied on average provides 17 jobs, generating $888,000 in labor income to the community’s economy.

“Livestock auction markets today remain critical in helping our rural communities continue to thrive,” said Kristen Parman, LMA Vice President of Membership Services. “They generate a competitive sale environment, which results in cash for local livestock producers. That cash equals dollars spent in town and investments back into their businesses and operations.”

As a source of economic opportunity and community morale, it has also been found that livestock auctions continually invest in the health and longevity of their communities. As hosts of local events, ranging from junior livestock sales to fundraisers and cowboy church, to a secure location for resources in times of disaster, livestock auctions are key community resources with readily available facilities – especially in rural America.

The impact extends past the local level when livestock auctions choose to become LMA members. LMA is the national trade association for livestock marketing businesses and represents nearly 85% of regularly selling livestock markets in the U.S., including markets in the state of Idaho.

With their stories and voices at hand, this extends a markets’ reach beyond their local community and puts it on a national scale, connecting them with other livestock markets and operators across the country. Those conversations and connections can also extend to industry leaders and policy makers in our nation’s Capitol.

A healthy livestock auction industry is vital to animal agriculture, livestock producers and rural economies. Every farmer and rancher has a choice when it comes time to market their animals: the choice to take what may appear to be the easy path with direct trade to a buying station, or the choice to put the power of the livestock auction market to work on their behalf. At the end of the day, the investment of commission paid at the auction is the assurance to keep that auction operating and providing the services that livestock producers rely on.

While we can’t predict the future of the industry, there is one thing for certain: livestock auctions have a reach that extends past the walls of their facilities. Not only do they create opportunities for competition, while driving up the value of livestock for their local producers, but they also serve as a hub for information, a tool for farmers and ranchers and as LMA members, a voice on issues affecting the entire industry. Livestock auctions will always be an important piece of the beef supply chain, while also continually supporting and ensuring their customers and communities have a hope for a better tomorrow.

Just one buyer means just one price.

YOU DESERVE MORE.

We know your passion and we know your business. We’re here to help guarantee competition — Every single time.

Producers Livestock Marketing Association

Jerome, ID

Twin Falls Livestock Commission Company

Twin Falls, ID

Lewiston Livestock Market, Inc.

Lewiston, ID

Treasure Valley Livestock

Caldwell, ID

Blackfoot Livestock Auction

Blackfoot, ID

Burley Livestock Auction

Burley, ID

7 Rivers Livestock Commission LLC

Emmett, ID