There is a parallel universe of high end purebred livestock. Cattle and horses mainly. This guy's bull (Big Trumpy) sells for $100,000......then that seller goes to buyer's sale where he buys 2 horses for $50,000 each. So basically they trade a $100k dog for two $50k cats. Only one that gets dinged is the outsider who thinks they are actually worth that and buys one to take it home.

I once worked for a guy like that. He went to a purebred sale and bought a $5000 dog........(errrrr bull)........brought him home and turned him out. He may have gotten 30 mongrel stock calves the next year.......never came close to getting his money back.

If it's 4H and it's a 4H auction the premium might go as cash to the kids like an atta boy. People with a lot of money sometimes run up bids for animals kids raise because it isn't really about what you are paying to have it butchered and put in your freezer - it's about rewarding that kid for a job well done and giving him a good paycheck he or she can pout toward college.

Example; I paid $400.00 for a chicken one time because the girl that raised it and showed it worked her tail feathers off on that one chicken. I gave the chicken back to her.

The only premium ive seen was a sellers premium that the fair board charged each kid 7% of the sale price to be able to show and sell their animals.