Challenges in the agriculture economy may affect 4-H livestock auctions
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EmailWill economic uncertainties in the agriculture sector result in lower prices for 2026 4-H livestock projects?
The most recent U.S. Department of Agriculture Economic Research Service report indicates that inflation adjusted net farm income is forecasted to decline 2.6% from 2025 to 2026. While prices on some commodities have improved in recent years, many farms are still experiencing market volatility influenced by global supply and trade policies. In addition, input expenses, including fuel and fertilizer, have drastically increased in recent years, cutting into slim margins. Other increasing expenses include machinery costs, labor, land rent and real estate prices, as well as higher interest rates. Some farms are facing potential shortfalls in profitability that could affect their financial stability in the coming year, including their ability to remain in business.
If you are 4-H member who markets your county fair animals to the agricultural community, these circumstances are something to consider as you finalize your fair projects in the coming weeks. The following tips will help Michigan 4-H members and families get the most out of their 4-H projects while being mindful of how hardships in the agricultural economy may affect the price they receive at livestock auctions at fairs.
Expand your buyer list
Each 4-H member should write buyer letters in advance of the fair to invite potential buyers to the auction. If the list of buyers you send letters to only includes farms and agricultural businesses, consider expanding your list to include others outside of the agriculture industry such as doctors, mechanics, small business owners and family friends. Be creative and think outside the box; who are the potential buyers that no one else is going to invite?
Show empathy
4-H members should still invite buyers from the agricultural community to the livestock auction but be understanding and accepting if a potential buyer declines the invitation. Do not take it personally if a potential buyer indicates they are not able to participate in the auction this year. Thank them for their consideration and let them know you will check back next year.
Be grateful
If the price you receive for your animal is less than you hoped for, still thank your buyer. Typically, most animals that are sold through 4-H livestock auctions at fairs receive a premium price over the stockyards. This may be the most that a buyer is able to afford this year. Gratitude can go a long way in maintaining long-term support from your buyers.
Find additional tips for preparing for 4-H livestock auctions in these Michigan State University Extension articles and websites:
- Helpful hints for marketing your livestock project
- 10 Tips for a better buyer’s letter
- 4-H animal project marketing resources
MSU Extension and Michigan 4-H Youth Development help to prepare young people for successful futures. To find out how to get involved as a Michigan 4-H youth participant or an adult volunteer, contact your county MSU Extension office.
