The Multi-Tract Auction Method Explained

If you have researched farmland auctions, you have likely encountered the term "multi-tract method." It is widely considered the most effective approach to selling agricultural properties at auction, and it is the method that Schrader Real Estate and Auction Company invented and has built its entire auction operation around. Understanding how it works — and why it consistently produces strong results for sellers — is essential for any farmland owner considering an auction.

How the Multi-Tract Method Works

In the Schrader Multi-Tract Method, a property is divided into individual tracts and then offered in individual tracts, any combination of tracts, and as a total property. This means a buyer can bid on a single 80-acre parcel, a combination of three adjacent tracts totaling 240 acres, or the entire 1,000-acre farm — whatever suits their needs and budget.

The auction begins with a price being bid on each individual tract. Once per-tract bidding is established, the bidding opens up to any and all combinations. The auctioneer works the room, taking bids on individual tracts and combinations simultaneously, with Schrader's proprietary software calculating every possible outcome in real time. The property ultimately sells in whatever combination produces the highest total dollar amount for the seller.

Why It Creates Maximum Competition

The genius of the multi-tract method lies in the competition it creates. Consider a 500-acre farm offered as a single unit. The buyer pool is limited to those who can afford — and want — all 500 acres. By breaking that farm into five 100-acre tracts, the auction suddenly attracts two distinct groups of buyers:

• Individual tract buyers — neighboring farmers, smaller investors, or first-time buyers who want one or two specific parcels
• Combination and total-property buyers — large-scale operators, institutional investors, or established farmers looking to make a significant acquisition

These two groups compete against each other. If the individual tract bids on all five parcels add up to more than any single buyer's bid for the whole farm, the property sells in pieces. If a combination buyer's total exceeds the sum of individual bids, the property sells as a unit. Either way, the seller gets the highest possible price because the market itself determines the optimal outcome.

Schrader's Commitment to the Method

While some auction companies use the multi-tract method occasionally, Schrader utilizes it on every single live auction that involves more than one tract. This is not a technique pulled out for special occasions. It is the standard operating procedure for every multi-parcel sale the company conducts.

This consistency matters enormously. Because the Schrader team runs multi-tract auctions on every qualifying sale, the auctioneers, bid assistants, clerks, and technology team are extremely proficient in conducting these auctions. They know how to manage the pace, engage the room, handle complex bidding scenarios, and keep the process clear and transparent for everyone involved. The result is an auction that provides buyer confidence and clarity — which directly translates into a better sale price for the seller.

Managing Complexity at Scale

When an auction involves dozens of tracts, the number of possible bidding combinations becomes staggering. An auction with 20 tracts generates over a million possible combinations. Schrader has managed auctions with nearly 100 tracts and single auction totals as high as $55 million.

Managing this level of complexity requires more than experienced auctioneers. It demands purpose-built technology, a trained support team, and a disciplined process. Schrader deploys a full professional team at every multi-tract auction: auctioneers working the room to maintain energy and engagement, bid assistants tracking numbers at every table, staff managing a live digital scoreboard, and a registration team handling check-in — all working in precise coordination.

For sellers, the multi-tract method offers a simple but powerful guarantee: your property will be sold in whatever configuration the market determines is most valuable. You are not leaving money on the table by limiting who can bid or how they can bid. The market decides, and Schrader's team and technology ensure that every dollar of value is captured.