Farmland prices continue strong as auctions draw big crowds

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With the sale of six southwest Wisconsin farms totaling approximately 1,182 acres -- at prices reaching as high as $9,252 per acre for tillable farmland -- Schrader Real Estate and Auction Company has managed a series of November sales that have shown the market for farmland to be alive and well.

"Whether we've been in Wisconsin, Arkansas, Indiana, Michigan or Ohio, we've consistently seen big crowds and intense competition for the properties we've offered during November. We've seen it on farms of all sizes, in a broad geographic area. This has resulted in very strong sale prices, with participation from farmers and investors alike," said Schrader.

The Wisconsin farms, which also included considerable wooded recreational land, sold for more than $6.5 million, with both farmers and investors competing vigorously for the land. "The biggest purchaser was a farmer, who paid $9,252 per acre for two tracts making up 256 acres. Other tracts went for various prices, with both farmers and investors making farmland purchases," said Schrader.

"In a market like this one, there's a strong temptation to try to prognosticate, but all we can ever really know is what we're actually seeing in the marketplace. We all know that annual gains of 20 or 25 percent can't be sustained forever. But what prices will do in the future is something only the marketplace can tell us," said Schrader.

"Just this month, we've seen $9,343 per acre in Michigan and $8,277 per acre in Lake County, Ind., where the total sale was $10.42 million. Farther south in Arkansas, we had a $6.41 million sale, at $3,675 per acre. Prices vary depending on the quality of soils, location, and the percentage of tillable land, but the direction has continued upward," said Schrader.

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T. Allen Dyer    
Iowa  |  November, 27, 2013 at 10:29 AM

Dear Readers: DON"T HAVE TO SELL YOUR FARMLAND! If you have an interest in farmland either as an active farmer or investor then you will want to follow our organization. We are the helping to changing the way farmland is bought, sold and valued. Over the last 6 years we have interviewed hundreds of older farmers and have developed, with our employer (a group of farmers and investors) a new paradigm which enables farmers to get the liquidity they are looking for without having to sell farmland, borrow or pay a big capital gains tax. No realtor commission or auction fees. For investors, our firm creates direct contacts with farmers looking for liquidity, allowing them to invest without managerial expense or responsibility. Investors get the opportunity to invest in farms that may never be offered for sale to investors as outright acquisitions. This is the way investors will invest in farmland moving forward. This model has the potential to open up a 2 trillion dollar inventory of family owned farmland to investors for the first time in a way that is attractive to farmers, ensures food security and provide other positive social benefits. This model is also addressing farmlands single greatest shortcoming—being illiquid, potentially pushing farmland values higher by creating values based on farmlands ability to generate superior income and capital appreciation that can be unlocked without selling outright. I look forward to hearing back from you and the possibility of discussing this with you in more detail. Regards, T. A. Dyer, President and Director of Marketing Farmland Marketing Group, Inc. 699 Walnut Street Suite 400 Des Moines, IA 50309 866-800 7039 ext. 40 563-271-2037 cellular

Nevada  |  December, 01, 2013 at 09:07 AM

Hi. I own a farm in Indiana and might be interested in the details of your proposal in the future. At the moment I am wondering who was the big buyer ($6.6M) of Lake County Indiana farm land at the recent Schrader auction. Can you share that information? Thx Ed

December, 02, 2013 at 07:04 AM

The press release we received from Schrader did not mention the name of the farm land that sold at acution. However, you can contact Schrader Real Estate and Auction Company at 800-451-2709.

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