Schrader: Farmland values remain strong

decrease font size  Resize text   increase font size       Printer-friendly version of this article Printer-friendly version of this article

The record drought has done little to derail the advance in farmland prices, as eager buyers continue to turn to the land throughout the Corn Belt and beyond, according to R.D. Schrader, president of Schrader Real Estate & Auction Company.

"We've just taken a look back at a number of our auctions for the last half of October, and we're seeing consistently high demand across the spectrum. Prices naturally vary greatly by location and land quality, but in any given location, at any given level of productivity, demand remains largely undiminished," said Schrader.

"There's been a lot of focus on the very high end of the market, and some folks get the impression that all farmland is selling across the board for $15,000 per acre or even more. As a result, they may pass up a buying opportunity because they think current prices may be out of line with the underlying fundamentals," said Schrader. "The opposite is true. Buyers are making business decisions based on rates of return."

The USDA projected net farm income would be the second highest since 1973 adjusted for inflation, thanks in part to high commodity prices and farm insurance. "As we look ahead to 2013 and think long term, folks realize that the returns and long term value of farmland remain. Farmers have always thought long term, and that will never change," said Schrader.

Recent sales for Schrader -- all in the second half of October -- include:

  • 174 acres in Tippecanoe County, Ind., for $1,145,000, or $6,580 per acre.
  • 229 acres in Tipton County, Ind., for $1,675,000, or $7,314 per acre.
  • 290 acres in Butler County, Ohio, for $1,816,000 at $6,262, with prices ranging as high as $9,333 per acre.
  • 204 acres in Clinton County, Ind., for $1,254,600, or an average $6,150 per acre.
  • 228 acres in St. Joseph County, Ind., for $1,815,000, or $7,960 per acre.
  • 410 acres in Wayne County, Ind., for $2,385,000, or $5,817 per acre.
  • 299 acres in Newton County, Ind., for $3,350,000, or $11,194 per acre.

"In all of these cases, we got results that would be considered strong by any historical standard, but they are still prices based on current returns. And with rents continuing to climb, land continues to be attractive to investors as well," said Schrader.

Schrader Real Estate and Auction Company, based in Columbia City, Ind., is a leading auctioneer of tillable farmland throughout the United States.

Buyers Guide

Doyle Equipment Manufacturing Co.
Doyle Equipment Manufacturing prides themselves as being “The King of the Rotary’s” with their Direct Drive Rotary Blend Systems. With numerous setup possibilities and sizes, ranging from a  more...
A.J. Sackett Sons & Company
Sackett Blend Towers feature the H.I.M, High Intensity Mixer, the next generation of blending and coating technology which supports Precision Fertilizer Blending®. Its unique design allows  more...
R&R Manufacturing Inc.
The R&R Minuteman Blend System is the original proven performer. Fast, precise blending with a compact foot print. Significantly lower horsepower requirement. Low inload height with large  more...
Junge Control Inc.
Junge Control Inc. creates state-of-the-art product blending and measuring solutions that allow you to totally maximize operating efficiency with amazing accuracy and repeatability, superior  more...
Yargus Manufacturing
The flagship blending system for the Layco product line is the fully automated Layco DW System™. The advanced technology of the Layco DW (Declining Weight) system results in a blending  more...
Yargus Manufacturing
The LAYCOTE™ Automated Coating System provides a new level of coating accuracy for a stand-alone coating system or for coating (impregnating) in an automated blending system. The unique  more...
John Deere
The DN345 Drawn Dry Spreader can carry more than 12 tons of fertilizer and 17.5 tons of lime. Designed to operate at field speeds up to 20 MPH with full loads and the G4 spreader uniformly  more...
Force Unlimited
The Pro-Force is a multi-purpose spreader with a wider apron and steeper sides. Our Pro-Force has the most aggressive 30” spinner on the market, and is capable of spreading higher rates of  more...
BBI Spreaders
MagnaSpread 2 & MagnaSpread 3 — With BBI’s patented multi-bin technology, these spreaders operate multiple hoppers guided by independent, variable-rate technology. These models are built on  more...

Comments (0) Leave a comment 

e-Mail (required)


characters left

LPV Seed Treater

The LPV Seed Treater has set a new standard boasting three configurable weighing methods for any-sized operation, a standard 42” ... Read More

View all Products in this segment

View All Buyers Guides

Feedback Form
Feedback Form