Economic and Marketing Information                                                                                                                                                                                          FOR INDIANA  FARMERS
Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana      
January   31,   1961
INDIANA   FARMERS
Livestock Auctions In Indiana
by THOMAS T.  STOUT,  Agricultural  Economics
AUCTION MARKET GROWTH has been one of
k the dynamic changes in Indiana livestock marketing since World War II. Auction markets have
increased from 54 in 1940 to 70 in 1958 with even
greater growth in percentages of livestock sold
through these markets. Between 1940 and 1956,
cattle and calf sales through auctions increased
about 180%, while hog sales increased about 70%
(Figure 1). This growth in cattle marketings has
placed them second only to terminals in receipts and
sales of all cattle and calves, and first in importance
as an outlet for slaughter calves.
Auctions Are a  Farmer's Market
Auctions should not be thought of as predominant
slaughter markets. In Indiana where nearly 85'4
of the cattle and 95/< of the hogs are marketed for
slaughter purposes, auctions are surpassed in volume of total marketings by terminals, local markets,
and packer markets.
The significance of auction markets to the producer rests in the services they provide in the non-
slaughter market. They are important in the purchase and sale of non-slaughter stock and as a basis
for price determination of interfarm livestock sales.
Figure 1. Percent Change in Share of Total Market Receipts at Indiana Livestock Markets, 1940-1956.
(Terminals refer to Fort Wayne, Muncie, Indianapolis and Evansville. "All Other" includes farmers,
dealers and cooperative shipping associations.
Percent change Percent change
All Cattle and Calves
All Hogs and Pigs
No
Change
For example, in 1956, the most recent survey year,
farmers sold more vealer and deacon calves, feeder
cattle and calves, breeding cattle and calves, and
feeder pigs through auctions than through any other
established market facility. In that same year, they
bought more feeder cattle and feeder pigs through
auctions than from any other physical market facility.
Farmers consigned virtually all the sheep and
lambs, including slaughter stock, and 90% or more
of the hogs, pigs, cattle and calves sold at auctions.
Other consignments were made in minor amounts
by the auction management and by livestock traders.
Farmers bought none of the slaughter animals offered for sale but re-purchased 50 to 98' of the
non-slaughter stock that had been consigned.
Auction  Size and Concentration
Two factors influencing the growth and operation
of country livestock markets are O proximity to
terminal markets and other competing facilities, and
Q the density of livestock population in the area.
Figure 2 shows the locations of Indiana's 73 auction
markets. One can see the heavier concentration of
auctions in northeastern Indiana where there is less
terminal influence and where hog population is
relatively low, minimizing the concentration of daily
markets in the area. In the northwestern part of
the state much of the livestock is sent to the Chicago
Union Stockyards. Although livestock population is
high in central Indiana, much of it goes to Indianapolis. Both low
livestock densi-
ty and the
strength of terminal markets
a t Evansville,
Louisville, and
Cincinnati tend
to limit auction
growth in the
three southern
areas.
Figure 2. Auction Locations in
Indiana,     1958.