Demand for prime farmland and agricultural equipment driven by high
commodity and livestock prices
SASKATOON, April 26 /CNW/ - Vancouver, B.C.-based, Ritchie Bros.
Auctioneers (NYSE: RBA) and (TSX: RBA), the world's largest industrial
auctioneer, has experienced strong pricing and increased bidder
registrations at its Western Canadian agricultural auctions so far in
2011. From March 1 to April 23, 2011, the Company conducted 48
agricultural auctions in Western Canada. During the period of April 2 -
9, 2011, the Company held 12 agricultural auctions, including
multi-million dollar unreserved auctions in Nut Mountain, Saskatchewan
(April 2); Lacombe, Alberta (April 4); Wroxton, Saskatchewan (April 5);
and Saskatoon, Saskatchewan (April 7), generating aggregate gross
auction proceeds of more than CA$40 million—a significantly above trend
amount for this business period. The Ritchie Bros. April 7 agricultural
auction at its permanent facility in Saskatoon registered 3,400
customers to compete on more than CA$18 million worth of machinery.
Ritchie Bros. holds strictly unreserved auctions, with every item
selling to the highest bidder regardless of price. Bids are made in
person (on-site or on-the-farm), online in real time through the
Company's 21-language web site www.rbauction.com, or by proxy—also referred to as an absentee bid—for people who aren't
able to bid in person or online on auction day.
"During the first week of April, our Western Canadian on-the-farm
auctions posted our strongest ever results for number of bidders and
online sales, with interest coming from local and out-of-region farmers
and investors," said Jordan Clarke, Area Manager, Ritchie Bros.
Auctioneers. "In particular, due to the wet start to this year's
agricultural season in Western Canada, we have witnessed increased
demand for in-season agricultural equipment such as large, high
horsepower 4WD and belted agricultural tractors and air drills."
Added Mr. Clarke: "Above average commodity and livestock prices have
also affected the pricing of farm equipment and prime farmland in the
region. A farmer's spending tends to be more aggressive if they see a
better return on their crops, and if they see an opportunity to make
money down the road they're willing to invest in equipment and land. As
a result, we have witnessed appreciation in the value of farmland so
far this season has."
Nut Mountain, SK (April 2)
The Ritchie Bros. unreserved auction in Nut Mountain on April 2 featured
more than 360 equipment items, which attracted more than 1,100 bidders
from 15 countries, including five Canadian provinces and 18 U.S.
states. More than 500 people (47 percent) at the auction bid online,
purchasing 25 percent of total equipment items sold. Some of the
equipment highlights from the auction included a 2006 Peterbilt 379L
T/A truck tractor, which sold for CA$92,000.
Equipment consignor Ted Cawkwell says he chose Ritchie Bros. to conduct
the sale of his family's multi-generational farm in Nut Mountain after
interviewing a few other local auction companies. "I chose Ritchie
Bros. because it is the largest farm auction company in the world with
a broad range of customers they can reach globally in addition to
locally," said Mr. Cawkwell. "The ability for customers to bid online
definitely helped get a higher return on our farm machinery than we
anticipated—many items even left the province. I wasn't surprised by
the size of the bidding crowd. I had complete confidence that Ritchie
Bros. could deliver, and they did."
Lacombe, AB (April 4)
At an unreserved auction in Lacombe, Alberta on April 4, Ritchie Bros.
attracted more than 740 bidders with more than 50 percent of people
bidding online. A highlight of the auction was the sale of 10 parcels
of land for a combined value of CA$4.9 million. Other real estate items
sold in the Lacombe auction included:
Four acres of residential property with a 3,800 square foot home
155± home quarter title acres with a 1,100± sq. foot house
154± home quarter title acres with a 1,000± sq. foot house
1426± title acres with $23,800± surface lease revenue
Wroxton, SK (April 5)
An unreserved on-the-farm auction in Wroxton, Saskatchewan on April 5
drew a bidding crowd of 750+ people, of which 400 individuals bid
online. The auction featured 38 parcels of farmland for a combined
5,808 title acres and more than 150 agricultural equipment items.
Altogether, the 38 parcels of farmland sold for CA$3.1 million. Other
auction highlights included the sale of two late model FWD John Deere
agricultural tractors—one which sold for CA$197,500 to an online buyer
from Alberta and another that sold for CA$175,000 to a Saskatchewan
Ritchie Bros. currently has more than 20 upcoming agricultural auctions
scheduled, including a large on-the-farm auction for KFC Farms in Cache
Creek, B.C. on May 28. For a complete list of Ritchie Bros. auctions
visit the Company's web site at www.rbauction.com.
About Ritchie Bros.
Established in 1958, Ritchie Bros. Auctioneers (NYSE: RBA) and (TSX:
RBA) is the world's largest industrial auctioneer, selling more
equipment to on-site and online bidders than any other company in the
world. Ritchie Bros. offers services that enable the world's builders
to easily and confidently exchange equipment. The Company conducts
hundreds of unreserved public auctions each year, selling a broad range
of used and unused equipment, trucks and other assets utilized in the
construction, transportation, agricultural, material handling, mining,
forestry, petroleum and marine industries. Ritchie Bros. has over 110
locations in more than 25 countries, including 43 auction sites
worldwide. The Company maintains a web site at www.rbauction.com and sponsors an equipment wiki at www.RitchieWiki.com
Investors and potential investors should note that this information may
not be indicative of the overall financial performance of the Company
for this or any future period.
ATTENTION MEDIA: Photos from Ritchie Bros. on-the-farm auctions in Nut Mountain and
Wroxton are available for media use at http://www.rbauction.com/media. Members of the public and the media can follow Ritchie Bros. on
SOURCE Ritchie Bros. Auctioneers
For further information:
Jose Vargas, Corporate Communications Specialist, Ritchie Bros. Auctioneers
Phone: +1.778.331.5439 or email email@example.com
Jordan Clarke, Area Manager, Ritchie Bros. Auctioneers
Phone: +1.306.933.9333 or email firstname.lastname@example.org