ON-FARM auctions conducted by machinery specialist, Cheffins, have nearly tripled during 2017, grossing in excess of £10m at 25 sales – but Brexit is having an influence. 
According Cheffins’ director, Oliver Godfrey, 40% of farm sales have been held on behalf of farmers looking to change their farming policy, while 20% were due to farms being sold or let, and a further 20% were following natural retirement from farming. The remainder were due to cessation of business, or ill health. 
“Activity for on-farm sales has more than doubled this year with only nine sales taking place throughout 2016 and only 11 in 2015,” said Mr Godfrey.
“Prolonged periods of low commodity prices, combined with the vast growth of agri-businesses 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.
“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 as farmers grasp the auction method as the easiest way to generate the highest prices for surplus items. 
“Compulsory Purchase Orders and their prevalence across the UK as the government continues to push large infrastructure projects has resulted in a handful of on-farm sales throughout the year, such as those in close proximity to the A14 widening scheme in Cambridgeshire,” he added, pointing out on-farm sales have been conducted by the company from Lancashire to the West Country. 
Mr Godfrey also noted that while there are increasing numbers of farmers selling up, there has also been an increase in prices paid for second-hand machinery as the market looks to cut costs and pick up high quality kit without the new-cost price tag. 
With a strong attendance at sales from the UK, Ireland and Europe, the highest value sale of the last year was for Whittinghams Farm Supplies, in Preston, which saw more than £1.6m-worth of agricultural machinery sold as a dispersal auction on behalf of the largest single vendor of modern equipment in recent years.
Fellow Cheffins director, Bill Pepper, said sales throughout 2017 had risen by more than 100% for some months and have been at their strongest since 2013. This has been driven by overseas’ purchasers as they continue to make the most of the low value of sterling after the Brexit vote. 
“We have seen buyers from Europe in their droves throughout the year as old faces return to the sale ground every month and newer buyers also come to the market to make the most of the relative savings to be had,” said Mr Pepper, adding that the strength of the US dollar has led to an increase in American buyers, both at the sale sites and online. 
“As prices for new machines continue to grow, more buyers are turning to high quality second-hand items and the competition between overseas purchasers and UK-based buyers has had a knock-on effect on prices achieved for the best used kit. 
“This has also been compounded by a lack of second-hand machinery on the market and the relative reduction in supply when compared to previous years,” he said.
Mr Pepper said John Deere was the most popular tractor make in 2017, while Massey Ferguson and New Holland remained the models of choice for Irish buyers from both the North and the Republic. JCB Fastracs sold well, with the majority heading to Poland. 
“We forecast that 2018 will continue in much of the same vein with price rises continuing for quality second-hand machinery and hopefully an increase in stock throughout all levels of the market. 
“As Brexit negotiations continue, the agricultural industry will be waiting for news on support payments. While this may end up having an effect on the purchase rate of new machinery, we expect it will help the second-hand market as farmers and landowners look to cut costs in times of uncertainty,” commented Mr Pepper.