The condition of small-scale farmers in Indonesia is getting worse that is caused by an unfair low price that reflects to the low level of revenue for their income. This happens either because the dependency on trader/middlemen for selling the produce and the low accessibility of farmers to the market. The existence of auction mechanisms created by the Indonesian government auctions is still dominated by traders/middlemen, so that the increasing of prices have not affected to the farmers. Alternatively, by linking directly farmers to the auction mechanism will be analyzed in a descriptive and a qualitative ways from the point of view of price formation in the auction and the farmers’ determining factors to participate in the auction. The analysis conducts policy recommendations for ongoing agricultural auction development with the direct participation of small-scale farmers in the mechanism.